I hereby give notice that an ordinary meeting of the Council Controlled Organisations Governance and Monitoring Committee will be held on:

 

Date:††††††††††††††††††††††

Time:

Meeting Room:

Venue:

 

Thursday, 9 July 2015

10.00am

Rooms 1 and 2, Level 26
135 Albert Street
Auckland

 

Council Controlled Organisations Governance and Monitoring Committee

 

OPEN ADDENDUM AGENDA

 

 

MEMBERSHIP

 

Chairperson

Deputy Mayor Penny Hulse

 

Deputy Chairperson

Cr Calum Penrose

 

Members

Cr Anae Arthur Anae

 

 

Cr Cameron Brewer

 

 

Cr Dr Cathy Casey

 

 

Member Precious Clark

 

 

Cr Ross Clow

 

 

Cr Linda Cooper, JP

 

 

Cr Chris Darby

 

 

Cr Denise Krum

 

 

Cr Dick Quax

 

 

Cr Penny Webster

 

 

Member Glenn Wilcox

 

 

Cr George Wood, CNZM

 

Ex-officio

Mayor Len Brown, JP

 

 

(Quorum 7 members)

 

Jaimee Maha

Democracy Advisor

 

6 July 2015

 

Contact Telephone: (09) 890 8126

Email: jaimee.maha@aucklandcouncil.govt.nz

Website: www.aucklandcouncil.govt.nz

 

 


Council Controlled Organisations Governance and Monitoring Committee

09 July 2015

 

ITEM†† TABLE OF CONTENTS††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††† PAGE

9††††††††† Extension of Trust Deed : Highbrook Park Trust††††††††††††††††††††††††††††††††††††††††††††††††††††† 5 ††

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Council Controlled Organisations Governance and Monitoring Committee

09 July 2015

 

Extension of Trust Deed : Highbrook Park Trust

 

File No.: CP2015/08169

 

††

Purpose

1.†††††† To enable the Highbrook Park Trust deed to carry on for a further fifteen year term.

Executive Summary

2.†††††† The Highbrook Park Trust (HPT) is a legacy council controlled organisation (CCO) that was established in August 2000 to acquire, establish, and maintain a park on the Waiouru Peninsula, adjacent to the Highbrook Business Park.

3.†††††† A park of approximately 40 hectares has been established. Auckland Council provides an annual grant to the trust to maintain the park.

4.†††††† The trust deed provides for the trust to be wound up 15 years from the creation of the trust deed (which is approaching in August 2015) or anytime thereafter.††

5.†††††† At the Council Controlled Organisations Governance and Monitoring Committee meeting on 3 March 2015, staff, in accordance with the HPT Deed, requested approval to wind-up the HPT.

6.†††††† However, the trustees, while preparing to wind up the trust, have recognised that there is a benefit in retaining the current structure for another 15 years.† The reasons for recommending that the trust deed not be wound up now are as follows:

∑†††††† the trust would like to ensure that the seamless provision of services is maintained while the business park is completed

∑†††††† trustees have noted that the current mechanism for delivery is viewed as successful by councilís Parks, Sports and Recreation business partners because:†

o† the Trust is delivering an enhanced level of maintenance through an onsite team

o† the current delivery provides a streamlined process and economies of scale

o† the current trustees are able to successfully interface with the councilís Parks, Sports and Recreation department

o† public access to the park has been an additional advantage for council (i.e. Goodman NZ provided funding for resource consent for water sports and running/cycling events).

 

7.†††††† Staff have discussed the extension with the Manager Local and Sports Parks South and councilís legal team, and both support the recommendation to not wind up the HPT Deed.†

8.†††††† Given the park sits within two local boards, staff have met with both the Howick and Otara-Papatoetoe Local Board.† Both boards support the recommendation to not wind up the trust deed for a further fifteen years.†

9.†††††† Financial implications for council are neutral who currently provides an annual grant (management fee) to the trust to maintain the park.† The alternative would be financially no change but level of service may decrease.

10.†††† This report seeks approval to amend the trust deed and renew certain ancillary agreements to enable the Trust to continue for an additional fifteen years, being an initial five year term with review and right of renewal for any additional five year terms (two by five years), if required.††


 

Recommendation/s

That the Council Controlled Organisations Governance and Monitoring Committee:

a)††††† approve any amendments to Highbrook Park Trust Deed, the Funding and Management Agreements, and any other ancillary documentation to give effect to the decision not to wind up the trust so that it may continue to operate for another fifteen years, with the intention that:†

i)          there be a review at year five with a right of renewal for an additional five year terms (two by five years), if required; and

ii)         at each review will include feedback from Auckland Councilís Parks, Recreation and Sport department, and the Howick and Otara-Papatoetoe Local Boards.†

b)††††† delegate to Auckland Councilís Director Legal and Risk the authority to execute, renew and ament all necessary documentation to give effect to clause a) above, including:

i)          Highbrook Park Trust Deed between Auckland Council and Highbrook Park Trust; and

ii)         Funding and Management Agreements and any other ancillary documentation between Auckland Council and Highbrook Developments Limited.

 

Comments

11.†††† The HPT was established in August 2000 by Manukau City Council and Highbrook Development Limited.† It is a legacy council-controlled organisation of Auckland Council.† The purpose of the trust was to acquire, establish and maintain a park on the Waiouru Peninsula (adjacent to the Highbrook Business Park in East Tamaki) for the benefit of the public of the region. The business park is managed by Goodman NZ.

12.†††† The other objectives of the trust are to:

∑††† ensure the effective, efficient and safe use of the park

∑††† protect environmentally sensitive and geologically important areas within the park

∑††† ensure that uses and activities within the park are compatible with the adjoining communities

∑††† maintain references within the park to the historic uses of the land.

13.†††† Approximately 30 hectares of land were initially transferred to the trust, and subsequently an additional 10 hectares were acquired and transferred. The business park has been developed in stages and the park areas associated with each stage have been transferred to the trust.

14.†††† The trust is responsible for development of the park, and has undertaken extensive landscaping and planting. It is also responsible for the ongoing management, maintenance and administration of the park.† Council currently pays an annual grant (management fee) to the trust to meet the trustís annual budgeted expenses, including park maintenance.

15.†††† The trust deed provides that the trust can be wound up, on a date to be nominated by the trust and agreed with council some 15 years after the establishment of the trust, or anytime thereafter.†

16.†††† The trustees, when considering whether to wind up the trust, have recognised there is a benefit in retaining the current structure in order to complete the business park.††

17.†††† This report seeks approval for the recommendation that the trust continues for another fifteen years, being an initial five year term with review and right of renewal for an additional five year terms (two by five years), if required.††

18.†††† The reasons for recommending that the trust continues are as follows:

∑†††††† the trust would like to ensure that the seamless provision of services is maintained while the business park is completed

∑†††††† trustees have noted that the current mechanism for delivery is viewed as successful by councilís Parks, Sports and Recreation business partners because:†

o† the trust is delivering an enhanced level of maintenance through an onsite team

o† the current delivery provides a streamlined process and economies of scale

o† the current trustees are able to successfully interface with the councilís Parks, Sports and Recreation department

o† public access to the park has been an additional advantage for council (i.e. Goodman NZ provided funding for resource consent for water sports and running/cycling events).

 

19.†††† The Parks Sport and Recreation department support these recommendations noting:†

∑††† The Parks Manager, Local and Sports Parks South, has been the main point of contact for the HPT since its inception in 2000. During this time David Hosking has been the council representative and chairperson of the trust. Michael Ayrton is the other council appointed trustee.

∑††† David Hosking and Michael Ayrton have played a major role in fulfilling the objects of the trust which are to acquire, establish and maintain the reserves within Highbrook Park for the benefit of the people of Auckland.

∑††† Under David Hoskingís leadership the trust has produced a high quality park on the Highbrook estate and has maintained an excellent working relationship with council. The chairman has also provided timely reports and accounts in accordance with requirements.

∑††† The Parks Manager, Malcolm Page supports the continuation of the Highbrook Park Agreement along with the re-appointment of David Hosking and Michael Ayrton as Auckland Council representatives on the HPT.

Consideration

Local Board views and implications

20.†††† David Hosking, HPT Chair, Malcolm Page, Parks Manager, and Josie Meuli, Senior Advisor, CCO Governance & External Partnerships, presented to the Howick Local Board Portfolio meeting on Thursday 28 May 2015 and received a favourable response to the proposed amendment to extend the trust deed for up to fifteen years.

21.†††† David Hosking, HPT Chair, Malcolm Page, Parks Manager, and Alastair Cameron, Principal Advisor, CCO Governance & External Partnerships, presented to the Otara-Papatoetoe Local Board meeting on Monday 15 June 2015 and received a favourable response to the proposed amendment to extend the trust deed for up to fifteen years.

22.†††† Otara-Papaptoetoe Local Board resolved that HPT provide a half-year and annual presentation and report to the each local board.

23.†††† Council staff recommend that each five-yearly review will require input and feedback from Howick and Otara-Papatoetoe Local Boards.

Māori impact statement

24.†††† The decision whether to consent to the extension of the trust does not have an impact on issues of significance to iwi, as current management agreement will continue on a day to day basis.

25.†††† There are references within the park to the historic uses of the land, and these, together with the park brochure and website, highlight the significance of the area, particularly the Pukekiwiriki crater.

Implementation

26.†††† Auckland Councilís legal department and HPT will develop the appropriate amendments to the trust and management agreements and the Director Legal and Risk is delegated to approve all final amendments.

 

Attachments

There are no attachments for this report. ††††

Signatories

Authors

Josie Meuli - Senior Advisor

Authorisers

John Bishop - Treasurer† and Manager CCO Governance & External Partnerships

Sue Tindal - Chief Financial Officer, Acting Chief Executive

††