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:

Wednesday, 12 November 2014

1.30pm

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

Council Controlled Organisations Governance and Monitoring Committee

OPEN 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

7 November 2014

Contact Telephone: (09) 373 6201

Email: jaimee.maha@aucklandcouncil.govt.nz

Website: www.aucklandcouncil.govt.nz

Council Controlled Organisations Governance and Monitoring Committee

12 November 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 Tamaki Redevelopment Company Limited (TRC) - Annual Report (to 30 June 2014) 7

10 CCO Letters of Expectation 67

11 Legacy CCOs - Annual Report to 2014 87

12 Voting at Civic Assurance Special General Meeting 215

13 Consideration of Extraordinary Items

PUBLIC EXCLUDED

14 Procedural Motion to Exclude the Public 219

C1 Board Appointments Substantive Council Controlled Organisations (CCOs) 219

C2 Appointments to a legacy CCO 219

1 Apologies

At the close of the agenda an apology had been received from Cr P Webster.

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 Tuesday, 7 October 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.

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

12 November 2014

Tamaki Redevelopment Company Limited (TRC) - Annual Report (to 30 June 2014)

File No.: CP2014/25324

Purpose

1. To receive the Annual report for the period 1 July 2013 to 30 June 2014, from the Tamaki Redevelopment Company Limited.

Executive summary

2. The Tamaki Redevelopment Company Limited (TRC) is leading a programme of spatial and housing development and regeneration initiatives in Tamaki.

3. Financial results for the 2013-2014 year show a deficit of $412,000 against a budget deficit of $4,087,000.

4. Non-financials for the 2013-2014 year have been achieved for targets set out in the Heads of Agreement, Statement of Intent and Letter of Expectation. TRC is tracking well to meet targets from the Funding Letter (December 2013).

Recommendation/s

That the Council Controlled Organisations Governance and Monitoring Committee:

a) receive the Annual report for the period 1 July 2013 to 30 June 2014 from the Tamaki Redevelopment Company Limited.

b) thank the Chair, Brian Donnelly and Chief Executive, Deborah Lawson from the Tamaki Redevelopment Company Limited for their attendance.

Comments

5. The Tamaki Redevelopment Company Limited was incorporated in August 2012 by the Crown and Auckland Council to lead a programme of spatial and housing development and regeneration initiatives in Tamaki (Glen Innes, Panmure and Point England suburbs of Auckland).

6. TRC is majority owned by the Crown and minority owned by Auckland Council. The company is listed in Schedule 4A of the Public Finance Act 1989.

7. TRC is expected to coordinate delivery of a two stage programme across four key areas:

· Social – skills, knowledge and employment for Tamaki residents and their families

· Economic – jobs and business opportunities in the local economy

· Housing – better social housing options and private housing development

· Spatial – safe and connected neighbourhoods

Financial

8. TRC has been provided with funding from the Crown of $2,830,430 (2013 nil) and Council of $1,653,470 (2013 nil) for specific purposes as set out in its founding legislation and the scope of the relevant government appropriations and council budget.

9. TRC’s 2013-2014 result shows a deficit of $412,000 against a budget deficit of $4,087,000. Total income received during the year $4,569,000 against a budget of $67,000 is primarily due to funding received from Crown and Council ($4,484,000). Total expenses of $4,981,000 against a budget of $4,154,000 has resulted in an overspend of $827,000.

10. TRC has made additional spending against budget on contractors & temporary staff ($634,000) and consultants ($933,000) during the year. This is partly offset by reduced spending on personnel costs ($337,000), other professional services ($235,000) and other expenses ($114,000).

Non-Financial

11. TRC has achieved all of its Heads of Agreement (July 2012) targets, Statement of Intent (May 2013) targets and all Letter of Expectation (June 2013) targets.

12. TRC is continuing to work with the Council, Crown and the Tamaki community to deliver all the targets in the Funding Letter (December 2013). A number of the targets are initiatives that have received additional Council and Crown funding and have extended into the 2014-2015 financial year. Council staff consider that TRC are on track to achieving these targets.

Other Issues

13. Auckland Council note the resignation of the Chief Executive, Deborah Lawson and acknowledge her achievements during her time at TRC. Debra will be with the company until the end of December 2014, and during this time she will continue to help guide the company through the next phases of regeneration in the area.

Consideration

Local board views and implications

14. Orakei and Maungakiekie-Tamaki Local Board have received a copy of the Annual report.

15. Recognising that they are both delivering community projects in Tamaki, the Maungakiekie-Tamaki Local Board and TRC Board have agreed to collaborate on five key project areas. These include skills and employment, community gardens master planning for Ruapotaka and Maybury Reserves (including Ruapotaka marae), a community facility to be established at the old Scout hall in the Fenchurch neighbourhood and safety and security.

Māori impact statement

16. A targeted Maori and Pacific Island Community Development Programme has been implemented by TRC with a number of projects either completed or in progress. The projects include:

· Ruapotaka Marae Capacity Building Project – the project is still in early stages, with a brief developed and project team assembled.

· Ruapotaka Marae Master Plan and Feasibility Study – the project is still in early stages, with a brief developed and project team assembled.

· Cultural mapping – the project sees TRC working with iwi to protect cultural landmarks. The research phase is completed, with data used in various TRC planning strategies. Iwi agreed moving to a new digital stage which will involve residents and Manaiakalani Education Trust.

· Financial literacy training (targeting Maori and Pacific) – TRC and local community financial agencies are working together to identify coaches for the next course.

· Work with Maori to progress options for affordable housing in Tamaki. In terms of Progress, a strategy for affordable homes has been completed and submitted to shareholders for review.

17. Funding was provided from Crown and Council for these initiatives in the financial year to June 2014 and further funding has been provided to extend the initiatives through to June 2015.

Implementation

18. TRC will continue to implement the Tamaki Transformation Programme in line with its Strategic Framework.

Attachments

No.	Title	Page
a View	Appendix A - Tamaki Redevelopment Company Annual Report (1 July 2013 - 30 June 2014)	11

Signatories

Authors

Josie Meuli - Senior Advisor

Authorisers

John Bishop - Treasurer and Manager CCO Governance & External Partnerships

Stephen Town - Chief Executive

Council Controlled Organisations Governance and Monitoring Committee

12 November 2014

Council Controlled Organisations Governance and Monitoring Committee

12 November 2014

CCO Letters of Expectation

File No.: CP2014/24838

Purpose

1. To approve the 2015/2016 Letters of Expectation (LoEs) for the substantive Council Controlled Organisations (CCOs).

Executive summary

2. The annual LoEs are an important accountability document that informs the CCOs of council’s expectations.

3. The LoEs provide direction on:

a) issues of importance for council to help inform refinement of respective CCO’s behaviours, operations and service delivery

b) the development of the CCO’s Statement of Intent (SOI) for 2015-2018.

4. Following changes to the CCO Accountability Framework approved by the CCO Governance and Monitoring Committee, the LoEs are now being approved by the Budget Committee. This is to align discussions and decisions on the Long-term Plan (LTP) and Annual Plan with priorities outlined in the LoE.

5. At the 29 October 2014 Budget Committee/CCO workshop initial feedback was received on the LoEs. Changes have been made to the attached LoEs to reflect some of the feedback.

Recommendation/s

That the Council Controlled Organisations Governance and Monitoring Committee:

a) approve the Letters of Expectation for Auckland Council Investments Limited, Auckland Council Property Limited, Auckland Tourism Events and Economic Development, Auckland Transport, Regional Facilities Auckland Limited, Watercare Services Limited and Waterfront Auckland

b) authorise the Deputy Mayor to approve the final 2015/2016 Letters of Expectation for the substantive Council Controlled Organisations, incorporating:

i) changes agreed by this committee

ii) changes for final decisions agreed by this committee relating to CCOs on the draft Long-term Plan 2015-2025

iii) editorial changes.

Comments

6. The LoEs are an important document that commences the annual accountability process for the substantive CCOs.

7. The purpose of the LoEs is to outline the direction on:

a) issues of importance for council to help inform refinement of respective CCO behaviours, operations and service delivery

b) the development of the CCO’s SOI for 2015-2018.

8. Following a review on the CCO Accountability Framework, it was agreed by the CCO Governance and Monitoring Committee that the LoEs should be agreed by the Budget Committee. The reason for the change is to improve the alignment of discussions and decisions made as part of the LTP or Annual Plan with the direction and priorities set in the LoE.

9. Significant strategic direction has already been provided to the CCOs through the completion of the various planning documents that have been approved by council (e.g. the Auckland Plan, Local Board Plans, the Economic Development Strategy, and City Centre Master Plan). It is not considered necessary to repeat the relevant priorities from these planning documents in the LoE.

10. At the 29 October 2014 Budget Committee/CCO workshop initial feedback was received on the LoEs. Changes have been made to the attached LoEs to reflect some of the feedback.

11. Council operational and governance imperatives on the CCOs that are enduring in nature are included in other governance documents, and therefore not considered necessary to include in the LoE and SOI.

12. It is recommended that the LoEs be approved. However, councillors may wish to refine the LoEs to address other areas of interest.

13. It is recommended that the Deputy Mayor may approve the inclusion of any additional CCO related decisions made by the Budget Committee as part of agreeing the draft Long-term Plan 2015-2025.

Consideration

Local board views and implications

14. CCO governance and direction is the responsibility of the Governing Body.

15. However, CCOs should consider the Local Board Plans and advocacy items when developing their SOIs.

16. In addition, in developing the LoEs, advocacy items raised by the Local Boards through LTP workshops have been considered.

Māori impact statement

17. CCO governance documents require the CCOs to take into account of the Independent Maori Statutory Board’s schedule of issues of significance and statutory Treaty of Waitangi provisions, and where appropriate engage with the board on these matters.

18. For the 2015/2016 LoE, it specifically requests that the CCOs identify initiatives as part of developing their work plans that contribute to Māori well-being. This is to support council’s priorities of lifting Māori social and economic well-being and promoting Māori identity as Auckland’s point of difference in the world.

Implementation

19. It is the responsibility of the CCOs and relevant council subject matter experts to ensure that the CCOs have appropriate engagement in, and delivery of council policies, plans and strategies.

Attachments

No.	Title	Page
a View	ACIL - Letter of Expectation	71
b View	ACPL - Letter of Expectation	73
c View	ATEED - Letter of Expectation	75
d View	Auckland Transport - Letter of Expectation	77
e View	RFA - Letter of Expectation	81
f View	Watercare - Letter of Expectation	83
g View	Waterfront - Letter of Expectation	85

Signatories

Authors

Robert Irvine - Financial Planning Manager CCOs

Authorisers

Matthew Walker - Manager Financial Plan Policy and Budgeting

Stephen Town - Chief Executive

Council Controlled Organisations Governance and Monitoring Committee

12 November 2014

Legacy CCOs - Annual Report to 2014

File No.: CP2014/23325

Purpose

1. The report provides an overview of the Legacy CCOs annual reports to 30 June 2014.

Executive summary

2. In accordance with their Statements of Intent (SOI), the Contemporary Art Foundation, Te Puru Community Charitable Trust and COMET Auckland are required to submit an annual report for the year to 30 June 2014, by 30 September 2014.

3. Officers have reviewed the annual reports to 30 June 2014 and summarise the key points and issues as follows.

4. The Contemporary Art Foundation (formerly the Pakuranga Arts and Cultural Trust) is responsible for promoting and encouraging support for the arts for the benefit and enjoyment of the Auckland community.

5. Te Puru Community Charitable Trust is responsible for managing the community centre at Te Puru Park and to support sports, leisure, community and cultural groups in the Beachlands, Maraetai and Whitford communities.

6. COMET Auckland was established when the City of Manukau Education Trust was re-settled (2012), in order to allow a single entity to have a focus on education issues across the Auckland region. COMET Auckland’s purpose is to undertake actions, programmes and initiatives that support education and improve educational outcomes for Auckland, and especially for communities of high educational need in Auckland.

Recommendation/s

That the Council Controlled Organisations Governance and Monitoring Committee:

a) receive the Annual reports of the Contemporary Art Foundation, Te Puru Community Charitable Trust and COMET Auckland.

Comments

Contemporary Art Foundation (CAF)

Audit and Public Meeting

7. The annual report, attached at Appendix A, was received by Auckland Council on 30 September 2014. BDO Auckland has provided the independent report for the annual financial and non-financial accounts for CAF. The auditor advises both the financial statements and non-financial results comply with generally accepted accounting practices and fairly reflects CAF’s financial position, financial performance and service performance achievements against the performance targets for the year ended 30 June 2014. CAF will hold their public meeting to report actual performance against their budgets on 1 December 2014.

Financial Performance

8. CAF has reported a deficit of $41,076 for the year ended 30 June 2014 on total income of $639,616 and total expenses of $680,692. The net loss of $41,076 (6.4% of revenue) is after a non-cash accounting entry for depreciation of $72,821 which would otherwise mean the trust showed a $31,205 surplus (5% of revenue). The total Trustees Funds is $2,875,013.

Non-Financial Performance

9. CAF have exceeded the 2013-2014 targets providing a wide variety of art exhibitions, educational classes and increasing the usage of the Pakuranga facility.

10. Reeves Road Flyover : Auckland-Manukau Eastern Transport Initiative (AMETI) remains a strong focus for the trust. Auckland Council and Auckland Transport continue to meet with management and board from CAF and Te Tuhi Contemporary Art Trust (TTCAT).

Other key issues (including contribution to Maori wellbeing)

11. Kalisolaite Uhila’s work Mo’ui tukuhausia, commissioned by Te Tuhi, was one of four finalists selected for the 2014 Walters Prize. The work by Ukila, on the subject of racism, was titled “What do you mean, we?”.

12. William Pope. L – the friendliest black American artist in America produced a unique art installation for Te Tuhi. The work, entitled “The Long White Cloud” took the form of a play.

13. During the 2013-2014 period CAF have provided a diverse range of art projects and exhibitions where Tangata Whenua, youth and disadvantaged and disabled groups have been able to participate.

Te Puru Community Charitable Trust (Te Puru)

Audit and Public Meeting

14. The annual report, provided as Attachment B, was received by Auckland Council on 30 September 2014. Audit New Zealand has provided the independent report for the annual financial and non-financial accounts for Te Puru. The auditor advises that the results comply with generally accepted accounting practices and fairly reflects Te Puru’s financial position, financial performance and service performance achievements against the performance targets for the year ended 30 June 2014. Te Puru will hold their public meeting to report actual performance against their targets on 8 December 2014.

Financial Performance

15. Te Puru has reported a surplus of $20,580 for the year ended 30 June 2014 on total income of $643,019 and total expenses of $622,439. In comparison to 2013, this is an increase in the surplus by $14,497. Increase in revenue is mainly due to Oscar Holiday programme $15,800, Kiwisport Grants $14,656 and Venue Hire $8,809. The total Trustees Funds is $2,573,330.

Non-financial performance

16. Te Puru has achieved its performance measures for 2013-2014. Highlights identified by the trust include an increased number of centre users and an increase in the scope of activities offered to the community.

17. Council staff have worked with the Te Puru board and management to develop a new performance measurement framework for the 2014-2015 year (pages 13 – 16 of the attached Te Puru annual report). This will enable clearer reporting on the trust’s performance against measureable targets.

Other key issues (including contribution to Maori wellbeing)

18. Te Puru’s consideration of Maori wellbeing is through its mission statement and as such there is currently no reporting against its progress against this objective. The new performance measurement framework in the 2014-2015 SOI contains an objective to develop / maintain effective relationship with local iwi, with a number of measures that will be reported against during the coming year.

19. Te Puru has expressed its concern with the requirements (and costs) associated with its CCO status, particularly the audit requirements. Staff are identifying several options for changes to the trust and are currently discussing them with the trust and Franklin Local Board. Once a preferred approach is identified, a report will be prepared for the CCO Governance and Monitoring Committee.

Comet Auckland (COMET)

Audit and Public Meeting

20. The annual report, attached at Appendix C, was received by Auckland Council on 24 September 2014. BDO Auckland has provided the independent report for the annual financial and non-financial accounts for COMET. The auditor advises both the financial statements and non-financial results comply with generally accepted accounting practices and fairly reflects COMET’s financial position, financial performance and service performance achievements against the performance targets for the year ended 30 June 2014. COMET held their public meeting to report actual performance against their budgets on 17 October 2014.

Financial Performance

21. COMET has reported a surplus of $12,397 for the year ended 30 June 2014 on total income of $719,581 and total expenses of $707,184. This is a reduction of $14,198 compared to the 2012-2013 surplus of $26,595. Reduction in profit is mainly due to reduction in revenue of $22,962 offset by reduction in expenditure of $8,764. The total Trustees Funds is $328,509.

Non-financial performance

22. COMET moved offices from Manukau to central Auckland enabling the trust to engage more effectively with their stakeholders.

23. COMET support a number of local boards across the region providing expertise, advice as well as a focus on education and skill components for local board plans.

24. As part of the Mayor’s Traction Plan for Youth, COMET are working with a number of agencies and business including Ministry of Education and the Auckland Chamber of Commerce, to shape a Youth Employability Passport project. This also links in to other national programmes like Not in Education, Employment or Training (NEETs) which is focusing on education and employability of young people.

Other key issues (including contribution to Maori wellbeing)

25. COMET have developed a draft strategy through the Auckland Languages Strategy Group with a focus on increasing language (Te Reo Maori) in Auckland as well as creating coherence across other different supporting groups.

26. The Draft Languages Strategy will be available for consultation by December 2014 and an agreed approach by June 2015.

27. Tamaki Makaurau Education Forum (TMEF) have approved several priorities for action going forward with hui planned for each quarter following March 2015.

Consideration

Local board views and implications

28. The annual reports of all CCOs are provided to local boards for their information via the Local Board Services Department.

Māori impact statement

29. Legacy CCOs work directly within the local community and alongside local iwi. Specific information from each Legacy CCO relating to Maori wellbeing is referenced under key issues.

Implementation

30. Feedback from the CCO Governance & Monitoring Committee will be forwarded on to Legacy CCOs.

Attachments

No.	Title	Page
a View	Contemporary Art Foundation Annual report to 30 June 2014	91
b View	Te Puru Annual Report to 30 June 2014	143
c View	COMET Auckland Annual Report to 30 June 2014	187

Signatories

Authors

Josie Meuli - Senior Advisor

Authorisers

John Bishop - Treasurer and Manager CCO Governance & External Partnerships

Stephen Town - Chief Executive

Council Controlled Organisations Governance and Monitoring Committee

12 November 2014

Voting at Civic Assurance Special General Meeting

File No.: CP2014/25991

Purpose

1. To delegate to the Chief Finance Officer the power to vote or direct a proxy at the Special General Meeting of the New Zealand Local Government Insurance Corporation Limited (trading as Civic Assurance) to be held on Friday 5 December 2014.

Executive summary

2. Civic Assurance’s level of reserves and credit rating has fallen following the 2010-11 Canterbury earthquakes and subsequent dispute with a number of its reinsurers. Civic Assurance has operated at a financial loss for the past four years (after almost 40 years of profitability) and did not receive full shareholder support for a capital raising that was undertaken during 2012 and 2013.

3. Civic Assurance are to hold a Special General Meeting on Friday 5 December 2014 to consider passing a special resolution to facilitate the possible global settlement of some or all of the claims resulting from the 2010 and 2011 Canterbury earthquakes.

4. The Board of Civic Assurance unanimously supports this resolution.

5. Auckland Council’s Chief Finance Officer intends to support the special resolution.

Recommendation/s

That the Council Controlled Organisations Governance and Monitoring Committee:

a) delegate to the Chief Finance Officer the power to vote or direct a proxy at the Special General Meeting of the New Zealand Local Government Insurance Corporation Limited (trading as Civic Assurance) to be held on Friday 5 December 2014.

Comments

6. The New Zealand Local Government Insurance Corporation trading as Civic Assurance (“Civic”) was established in April 1961 as a local-government owned insurance and financial services company, and with 67 out of 78 councils in New Zealand as shareholders. Auckland Council is the largest shareholder with a 19.9 per cent shareholding (2,195,042 shares), valued at $2,921,690 as at 31 December 2013.

7. Civic Assurance has played an important role in improving both the terms and pricing of insurance for the local government sector. However, Civic Assurance is currently not in a position to offer coverage to the sector until the company’s credit rating is restored to at least A-.

8. Civic Assurance’s level of reserves and credit rating has fallen following the 2010-11 Canterbury earthquakes and subsequent dispute with a number of its reinsurers. Civic Assurance has operated at a financial loss for the past four years (after almost 40 years of profitability) and did not receive full shareholder support for a capital raising that was undertaken during 2012 and 2013.

9. Civic Assurance is to hold a Special General Meeting on Friday 5 December 2014 to consider passing a special resolution to facilitate the possible global settlement of some or all of the claims resulting from the 2010 and 2011 Canterbury earthquakes.

10. The resolution states:

“In accordance with section 129 of the Companies Act 1993 the shareholders approve the directors using their best endeavours to achieve a global settlement of some or all claims relating to the Canterbury earthquakes and if successful, the entry by the Company into the following transactions:

· One or more written settlement agreements by the Company with each of the Company’s reinsurers fully and finally settling some or all claims by the Company against each reinsurer relating to the Canterbury earthquakes under each policy of reinsurance; and

· One or more written settlement agreements by the Company with New Zealand Local Authority Protection Programme Disaster Fund (“LAPP”) fully and finally settling some or all claims by LAPP against Civic relating to the Canterbury earthquake, under the policy of insurance between Civic and LAPP.

The directors of the Company are authorised to finalise the amount of the settlements, and the terms of conditions of the settlements (acting in the best interests of the Company) and to enter into and sign all documents and to take any and all other actions that they many deem necessary or appropriate to effectuate the purposes of this resolution.”

11. By way of background, there have been some settlement negotiations to achieve a global settlement of the claims relating to the Canterbury earthquakes, although they as yet have not been successful.

12. Any large settlement that can be reached between Civic Assurance and LAPP could be a major transaction and any matching settlement between Civic Assurance and its reinsurers could in substance be a major transaction. Therefore the Directors of the Company are seeking prior approval to enable such settlements to be concluded. The settlements, if concluded, will be at an amount that the Directors of Civic Assurance and the trustees of LAPP consider fair and reasonable to all affected parties. While any settlement may constitute a major transaction for Civic Assurance and/or LAPP it does not trigger Auckland Council’s significance policy.

13. The Board of Civic Assurance unanimously support this resolution.

14. Auckland Council’s Chief Finance Officer intends to support the special resolution.

Consideration

Local board views and implications

15. Local boards were not consulted on this report as a region-wide issue and not specific to a particular local board.

Māori impact statement

16. The decision to delegate to the Chief Finance Officer the power to vote or direct a proxy is not a significant decision for Maori.

Implementation

17. No implementation issues have been identified.

Attachments

There are no attachments for this report.

Signatories

Authors

John Bishop - Treasurer and Manager CCO Governance & External Partnerships

Authorisers

Kevin Ramsay - Chief Financial Officer

Stephen Town - Chief Executive

Council Controlled Organisations Governance and Monitoring Committee

12 November 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 Board Appointments Substantive Council Controlled Organisations (CCOs)

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 candidates interviewed by Auckland Council for director vacancies on Regional Facilities Auckland and Waterfront Auckland. 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.

C2 Appointments to a legacy CCO

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 contains specific information about potential board appointments for a legacy council controlled organisation (Manukau Beautification Charitable Trust). 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.