Agenda of Council Controlled Organisations Governance and Monitoring Committee

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:

Tuesday, 4 March 2014

2.00pm

Reception Lounge, Level 2
Auckland Town Hall
301-305 Queen Street
Auckland

Council Controlled Organisations Governance and Monitoring Committee

OPEN AGENDA

MEMBERSHIP

Chairperson	Penny Hulse
Deputy Chairperson	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)

Rita Bento-Allpress

Democracy Advisor

26 February 2014

Contact Telephone: (09) 307 7541

Email: rita.bento-allpress@aucklandcouncil.govt.nz

Website: www.aucklandcouncil.govt.nz

Council Controlled Organisations Governance and Monitoring Committee

04 March 2014

ITEM TABLE OF CONTENTS PAGE

1 Apologies 5

2 Declaration of Interest 5

3 Confirmation of Minutes 5

4 Petitions 5

5 Public Input 5

6 Local Board Input 5

7 Extraordinary Business 5

8 Notices of Motion 6

9 Fukuoka Friendship Garden 7

10 Substantive CCO Half year reports / presentations 13

11 Consideration of Extraordinary Items

PUBLIC EXCLUDED

12 Procedural Motion to Exclude the Public 199

C1 Council Controlled Organisations Board Appointments - Watercare Services Limited (WSL) 199

C2 Board Appointments - Auckland Regional Amenities Funding Board 199

1 Apologies

At the close of the agenda no apologies had been received.

2 Declaration of Interest

Members are reminded of the need to be vigilant to stand aside from decision making when a conflict arises between their role as a member and any private or other external interest they might have.

3 Confirmation of Minutes

That the Council Controlled Organisations Governance and Monitoring Committee:

a) confirm the ordinary minutes of its meeting, held on Wednesday, 5 February 2014, including the confidential section, as a true and correct record.

4 Petitions

At the close of the agenda no requests to present petitions had been received.

5 Public Input

Standing Order 3.21 provides for Public Input. Applications to speak must be made to the Committee Secretary, in writing, no later than two (2) working days prior to the meeting and must include the subject matter. The meeting Chairperson has the discretion to decline any application that does not meet the requirements of Standing Orders. A maximum of thirty (30) minutes is allocated to the period for public input with five (5) minutes speaking time for each speaker.

At the close of the agenda no requests for public input had been received.

6 Local Board Input

Standing Order 3.22 provides for Local Board Input. The Chairperson (or nominee of that Chairperson) is entitled to speak for up to five (5) minutes during this time. The Chairperson of the Local Board (or nominee of that Chairperson) shall wherever practical, give two (2) days notice of their wish to speak. The meeting Chairperson has the discretion to decline any application that does not meet the requirements of Standing Orders.

This right is in addition to the right under Standing Order 3.9.14 to speak to matters on the agenda.

At the close of the agenda no requests for local board input had been received.

7 Extraordinary Business

Section 46A(7) of the Local Government Official Information and Meetings Act 1987 (as amended) states:

“An item that is not on the agenda for a meeting may be dealt with at that meeting if-

(a) The local authority by resolution so decides; and

(b) The presiding member explains at the meeting, at a time when it is open to the public,-

(i) The reason why the item is not on the agenda; and

(ii) The reason why the discussion of the item cannot be delayed until a subsequent meeting.”

Section 46A(7A) of the Local Government Official Information and Meetings Act 1987 (as amended) states:

“Where an item is not on the agenda for a meeting,-

(a) That item may be discussed at that meeting if-

(i) That item is a minor matter relating to the general business of the local authority; and

(ii) the presiding member explains at the beginning of the meeting, at a time when it is open to the public, that the item will be discussed at the meeting; but

(b) no resolution, decision or recommendation may be made in respect of that item except to refer that item to a subsequent meeting of the local authority for further discussion.”

8 Notices of Motion

At the close of the agenda no requests for notices of motion had been received.

Council Controlled Organisations Governance and Monitoring Committee

04 March 2014

Fukuoka Friendship Garden

File No.: CP2014/02312

Purpose

1. To provide committee members with an explanation of the decision making process for the removal and relocation of the Fukuoka Friendship Garden from Auckland Zoo.

Executive Summary

2. On 30 January 2014, the Governing Body referred the discussion on the removal and relocation of the Fukuoka Friendship Garden from Auckland Zoo, to the CCO Governance and Monitoring Committee for consideration.

3. The Fukuoka Friendship Garden was removed from Auckland Zoo to create space for a new Tasmanian Devil Precinct. The zoo is funded for annual exhibition renewals in accordance with Asset Management Plans, and the zoo’s renewal plan was reprioritised to fund the precinct’s development. The development was below the $2 million threshold that council set as requiring regular reporting. Regional Facilities Auckland (RFA) and council staff were appropriately consulted on the reprioritisation of funds to develop the precinct.

4. Quite separately, the zoo sought guidance from council staff on the sensitivities of removing and relocating the Fukuoka Friendship Garden. Council staff met and discussed the zoo’s plans with the Mayor of Fukuoka and his officials in November 2013. Council staff received an assurance that the Mayor of Fukuoka understood the need to relocate the garden. The Mayor of Fukuoka wrote to Mayor Brown in December 2013 confirming his support.

5. Based on the feedback received from the Mayor of Fukuoka, zoo and council staff agreed that there were no risks to the sister city relationship with Fukuoka. The zoo subsequently commenced the removal of the garden on 12 December 2013 in accordance with a plan provided by the Fukuoka Greenery Department.

Recommendation

That the Council Controlled Organisations Governance and Monitoring Committee:

a) note the contents of this report.

Discussion

Context

6. On 30 January 2014, the Governing Body received public input on the Fukuoka Friendship Garden. This was in relation to the dismantling of the Fukuoka Friendship Garden at Auckland Zoo. The Governing Body subsequently resolved that an apology would be made to the Mayor and people of Fukuoka City, and the people of Auckland including the Japanese community for the removal of the Japanese Garden. The Governing Body referred the matter to the Parks, Recreation and Sports Committee and the CCO Monitoring Committee for consideration.

7. This report provides committee members with information on the consultation and decision making processes that the zoo, Regional Facilities Auckland (RFA) and council staff followed prior to the removal of the garden.

8. A separate paper has been provided to the Parks, Recreation and Sports Committee for its meeting on 4 March 2014 (CP2014/02243 refers). That paper outlines the steps taken since January 2014 to address the Governing Body’s resolutions which includes a written apology from Mayor Brown to the Mayor of Fukuoka City, and advises councillors of the project plan to assess options for the relocation of the garden. This includes inviting a member of the Friends of the Fukuoka Friendship Garden to sit on the project steering group.

Analysis

Tasmanian Devil Precinct

9. In 2013, Auckland Zoo developed plans for the establishment of a Tasmanian Devil Precinct. The establishment of the Tasmanian Devil Precinct required the removal of the Fukuoka Friendship Garden. The zoo’s landscape architect specialist could not identify an alternative suitable location for the precinct within the zoo.

10. Auckland Zoo, together with Wellington Zoo, is participating in the Save the Tasmanian Devil Program, a Tasmanian government initiative established in 2003 in response to the threat of Devil Facial Tumour Disease (DFTD). DFTD is a rare contagious cancer that has spread rapidly through wild Tasmanian Devil populations, reducing their numbers by approximately 80 percent.

11. The Save the Tasmanian Devil Program is collaborating with research institutes and zoos around the world to address the epidemic and ensure the survival of the Tasmanian Devil. There are 550 healthy Tasmanian Devils, an insurance population, living in zoos and wildlife parks across Australia. Auckland Zoo is able to contribute to the Tasmanian Devil conservation by helping to provide space for healthy Devils.

12. The Auckland Zoo development plans were developed by the zoo. The establishment of a Tasmanian Devil Precinct required the relocation of the Fukuoka Friendship Garden. The garden has been situated at the Auckland Zoo for over 20 years and was accessible to visitors who paid access to enter the Zoo.

The Tasmanian Devil Precinct development budget is within delegated authority

13. The Tasmanian Devil precinct development was considered by RFA in April 2013 on receipt of the news of Australian ministerial approval for a pending export. The zoo is funded specifically for annual exhibition renewals in accordance with Asset Management Plans. The zoo’s renewals programme was amended accordingly by reprioritisation from the exhibitions renewals funding. Council staff were informed of the reprioritisation.

14. The development is below the $2 million threshold that council set as requiring regular reporting, and at the time, the initiative was not considered of high public interest. However, information regarding progress on the development was provided to council as part of RFA’s Statement of Intent (SOI) quarterly reporting.

Advice was sought on the removal of the Fukuoka Friendship Garden

15. The removal and relocation of the Fukuoka Friendship Garden had a different dimension to the funding and development of the Tasmanian Devil precinct, as it related to the council’s sister city relationship with Fukuoka. For this reason, Auckland Zoo sought input from the council’s International Relations team on the relationship with Fukuoka, and with the council’s Parks, Sports and Recreation team on suitable relocation sites and storage options.

16. The council’s International Relations team led discussions with officials from Fukuoka. This was supported with a visit to Fukuoka in November 2013 by council staff who met with the Mayor of Fukuoka, the Fukuoka council’s International Affairs Department and the Fukuoka Greenery Department.

17. Mayor Takashima was advised that the area of the zoo in which the garden was situated was scheduled for substantial re-development, and as a result, the garden had to be removed from its current location. Mayor Takashima and his staff acknowledged the need to relocate the garden and they confirmed that the relocation would not affect the sister city relationship. Mayor Takashima wrote to Mayor Brown noting his position of support in relation to the garden.

18. Based on the feedback received from Fukuoka, council and zoo staff agreed that there were no sister city relationship obstacles if the garden was removed and relocated. RFA’s Board was advised in November 2013. Auckland Zoo undertook the removal works, following a plan provided by the Fukuoka Greenery Department, between 12 December 2013 and 22 January 2014. Key elements of the garden, as advised by the Fukuoka Greenery Department, have been retained and will be stored at the zoo until a new location is confirmed.

Consideration

Local Board Views

19. Local Board views have not been sought for this report.

Maori Impact Statement

20. A Māori Impact Statement has not been prepared for this report.

Implementation Issues

21. A process for the reinstatement of the Fukuoka Friendship Garden has been presented to the Parks, Recreation and Sports Committee for approval.

Attachments

No.	Title	Page
a View	Letter from Mayor of Fukuoka to Mayor of Auckland December 2013	11

Signatories

Authors	Michael Quinn - Executive Officer
Authorisers	Mark Butcher - Treasurer

Council Controlled Organisations Governance and Monitoring Committee

04 March 2014

Substantive CCO Half year reports / presentations

File No.: CP2014/01763

Purpose

1. This report introduces reports from each substantive Council Controlled Organisation (CCO) for the second quarter ending 31 December 2013.

Executive Summary

2. This report is part of the regular quarterly reporting to the CCO Governance and Monitoring Committee by the substantive CCOs on their financial and service performance.

3. These reports support the consolidated group financial statements for the second quarter ending 31 December 2013.

4. At the time of preparing this report, the attachments for Auckland Council Investments and Waterfront Development Agency were not available. These will be distributed in an addendum agenda prior to the meeting.

Recommendations

That the Council Controlled Organisations Governance and Monitoring Committee:

a) receive the report from Auckland Council Properties Ltd.

b) receive the report from Auckland Transport.

c) receive the report from Watercare Services Ltd.

d) receive the report from Auckland Tourism, Events and Economic Development.

e) receive the report from Regional Facilities Auckland.

f) receive the report from Waterfront Auckland.

g) receive the report from Auckland Council Investments Ltd.

Discussion

5. In line with the current reporting obligations it is the responsibility of the board of each CCO to keep the committee, as the shareholder, informed of operating and financial performance, and abreast of risks. The individual reports from each CCO discharge these responsibilities.

6. None of the reporting CCOs have a significant variance from budget, nor have highlighted significant risk.

Consideration

Local Board Views

7. This report is for the Council Group. Local Boards receive reports specific to their area.

Maori Impact Statement

8. Individual reports include CCOs contribution to Maori outcomes as specified in the Statements of Intent.

General

9. There are no financial or resourcing issues arising from the adoption of this report.

Implementation Issues

10. There are no implementation issues.

Attachments

No.	Title	Page
a View	Draft ACPL Half Year Report	15
b View	Draft Auckland Transport Half Year Report	37
c View	Watercare Services Limited Half Year Report	111
d View	ATEED Half Year Report	147
e View	Regional Facilities Auckland Half Year Report	173

Signatories

Authors

Robert Nelson, Financial Controller

Authorisers

Kevin Ramsay - Manager Finance, Auckland CFO

Mark Butcher - Treasurer

Stephen Town - Chief Executive

Council Controlled Organisations Governance and Monitoring Committee

04 March 2014

Council Controlled Organisations Governance and Monitoring Committee

04 March 2014

Exclusion of the Public: Local Government Official Information and Meetings Act 1987

That the Council Controlled Organisations Governance and Monitoring Committee:

a) exclude the public from the following part(s) of the proceedings of this meeting.

The general subject 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(1) of the Local Government Official Information and Meetings Act 1987 for the passing of this resolution follows.

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 which would be prejudiced by the holding of the whole or relevant part of the proceedings of the meeting in public, as follows:

C1 Council Controlled Organisations Board Appointments - Watercare Services Limited (WSL)

Reason for passing this resolution in relation to each matter

Particular interest(s) protected (where applicable)

Ground(s) under section 48(1) for the passing of this resolution

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.

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

In particular, the report contains information and discusses the appointment of candidate for the Watercare Services Limited director vacancy. This information needs to be withheld to protect the privacy of the individuals.

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.

C2 Board Appointments - Auckland Regional Amenities Funding Board

Reason for passing this resolution in relation to each matter

Particular interest(s) protected (where applicable)

Ground(s) under section 48(1) for the passing of this resolution

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.

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

In particular, the report contains information regarding the appointments to the Auckland Regional Amenities Funding Board. This information needs to be withheld to protect the privacy of those individuals.

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.