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, 3 February 2015

9.00am

Rooms 1 and 2

Level 26, 135 Albert 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

 

28 January 2015

 

Contact Telephone: (09) 373 6201

Email: jaimee.maha@aucklandcouncil.govt.nz

Website: www.aucklandcouncil.govt.nz

 


TERMS OF REFERENCE

 

 

Responsibilities

 

The committee will undertake the Auckland Council’s responsibilities for CCOs through:

 

·         Setting policy relating to CCO governance

·         Director appointments

·         Approving SOIs

·         Monitoring performance

·         The committee will also have responsibility for the over sight of, and making appointments to, Council Organisations and exempt CCOs and COs

 

Powers

 

(i)         All powers necessary to perform the committee’s responsibilities.

 

Except:

 

(a)          powers that the Governing Body cannot delegate or has retained to itself (see Governing Body responsibilities)

(b)          where the committee’s responsibility is limited to making a recommendation only

 

(ii)        Power to establish subcommittees.


EXCLUSION OF THE PUBLIC – WHO NEEDS TO LEAVE THE MEETING

 

Members of the public

 

All members of the public must leave the meeting when the public are excluded unless a resolution is passed permitting a person to remain because their knowledge will assist the meeting.

 

 

Those who are not members of the public

 

General principles

 

·         Access to confidential information is managed on a “need to know” basis where access to the information is required in order for a person to perform their role.

·         Those who are not members of the meeting (see list below) must leave unless it is necessary for them to remain and hear the debate in order to perform their role.

·         Those who need to be present for one confidential item can remain only for that item and must leave the room for any other confidential items.

·         In any case of doubt, the ruling of the chairperson is final.

 

Members of the meeting

 

·         The members of the meeting remain (all Governing Body members if the meeting is a Governing Body meeting; all members of the committee if the meeting is a committee meeting).

·         However, standing orders require that a councillor who has a pecuniary conflict of interest leave the room.

·         All councillors have the right to attend any meeting of a committee and councillors who are not members of a committee may remain, subject to any limitations in standing orders.

 

Staff

 

·         All staff supporting the meeting (administrative, senior management) remain.

·         Only staff who need to because of their role may remain.

 

Local Board members

 

·         Local Board members who need to hear the matter being discussed in order to perform their role may remain.  This will usually be if the matter affects, or is relevant to, a particular Local Board area.

 

IMSB

 

·         Members of the IMSB who are appointed members of the meeting remain.

·         Other IMSB members and IMSB staff remain if this is necessary in order for them to perform their role.

 

CCOs

 

Representatives of a CCO can remain only if required to for discussion of a matter relevant to the CCO.

 


Council Controlled Organisations Governance and Monitoring Committee

03 February 2015

 

ITEM   TABLE OF CONTENTS                                                                                        PAGE

1          Apologies                                                                                                                        7

2          Declaration of Interest                                                                                                   7

3          Confirmation of Minutes                                                                                               7

4          Petitions                                                                                                                          7  

5          Public Input                                                                                                                    7

6          Local Board Input                                                                                                          7

6.1     Local Board Input - Franklin Local Board - Te Puru CCO Exemption          8

7          Extraordinary Business                                                                                                8

8          Notices of Motion                                                                                                          9

9          Te Puru Community Charitable Trust CCO exemption                                          11

10        Highbrook Park Trust - Winding up of the Trust                                                     43

11        Governance Review for Auckland Council's Council Controlled Organisations (CCOs)

This report was not available when the agenda was compiled, and will be distributed in an addendum agenda.

  

12        Consideration of Extraordinary Items 

 

 


1          Apologies

 

Apologies from Cr RI Clow and Cr P Webster have 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 Tuesday, 2 December 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.

 

6.1       Local Board Input - Franklin Local Board - Te Puru CCO Exemption

Purpose

1.       To provide the Franklin Local Board Chair, Andrew Baker, with an opportunity to address the committee regarding the topic of Te Puru CCO Exemption.

Executive Summary

2.       The Chair of Franklin Local Board, Andrew Baker, requested to speak under local board input. The Chair of the CCO Governance and Monitoring Committee has approved this request.

 

Recommendation/s

That the Council Controlled Organisations Governance and Monitoring Committee:

a)      receive the presentation from the Franklin Local Board Chair, Andrew Baker, regarding Te Puru CCO Exemption.

b)      thank the Franklin Local Board Chair for his presentation regarding Te Puru CCO Exemption.

 

 

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

03 February 2015

 

Te Puru Community Charitable Trust CCO exemption

 

File No.: CP2015/00116

 

  

 

Purpose

1.       To exempt the Te Puru Community Charitable Trust (Te Puru) from CCO requirements.

Executive Summary

2.       Te Puru is a legacy council controlled organisation (CCO) of Auckland Council which operates a recreation centre on Te Puru Park at Beachlands/Maraetai. Te Puru has expressed concerns about the time and cost involved in complying with the requirements of a CCO.

3.       These concerns have been discussed with council staff and the Franklin Local Board. Staff and the local board believe that the lease and funding agreement are the appropriate mechanisms for managing council’s relationship with Te Puru and that the relationship with this local trust would be better held with the local board, rather than the regionally-focused governing body.

4.       Te Puru intends to change its trust deed to remove Auckland Council as a Trustee Appointor, which will mean it is no longer a CCO. As this will take some time to implement, an interim approach is recommended of CCO exemption. This will give Te Puru certainty that it will not need to prepare a Statement of Intent for the 2015-2016 year.

 

Recommendations

That the Council Controlled Organisations Governance and Monitoring Committee:

a)      grant a council controlled organisation exemption to Te Puru Community Charitable Trust, to be reviewed no later than February 2018

b)      note that Te Puru Community Charitable Trust intends to change its trust deed so that it is no longer a council controlled organisation.

 

 

Discussion

5.       Te Puru is a legacy council controlled organisation (CCO) of Auckland Council. It was established by Manukau City Council in 2002 for the purpose of providing for the recreational, cultural and other community needs of the Manukau community, particularly those who live and work in the area formerly known as the Clevedon Ward.

6.       Te Puru is a CCO because Auckland Council has the power to jointly appoint all trustees (with the Chair of the trust and Counties Manukau Sport). It is also considered a public entity (requiring audit by the Office of the Auditor-General or its appointee), due to its CCO status, the fact it was originally established by Manukau City Council and provisions in the trust deed which cannot be changed.

7.       Te Puru has expressed concerns about the time and cost involved in complying with the requirements of a CCO. The trust has noted it wishes to investigate other potential status options.

8.       The Local Government Act 2002 allows councils to exempt CCOs from many of the requirements associated with that status, including preparation of a Statement of Intent (SOI) and certain audit requirements.

9.       Exemption for Te Puru has been considered previously (December 2012[1]) and at the time exemption was not recommended because “Te Puru […] owns significant built assets under a lease arrangement. In addition, Te Puru’s audited annual report signals an expectation that the council provides capital grants when necessary, rather than funding depreciation. […] These factors expose the council to some risk.”

10.     The Te Puru centre is situated on a council park and the trust has a peppercorn lease that expired on 30 November 2014, with a right of renewal for ten years. The lease is currently being negotiated with the council’s Property department, as Te Puru have requested an extension to the lease to cover the entire park, rather than just the portion of it which contains the centre.

11.     Te Puru receives approximately $325,000 operational funding per year from Auckland Council. This is provided through a funding agreement with the Parks, Sports and Recreation department and the budget sits with the Franklin Local Board. In recent years, council staff have worked to align the objectives in the SOI with the objectives in the funding agreement for clarity and simplicity. Te Puru’s performance is monitored regularly through the funding agreement.

Options

12.     There are three options for a change to Te Puru’s status:

a)    Council exempts Te Puru from CCO status. Exemptions must be reviewed every three years and council would still be responsible for jointly appointing trustees.

b)    Te Puru changes its trust deed to remove Auckland Council as a Trustee Appointor (or completely change the way trustees are appointed) – this would mean it is no longer a CCO. Section 16 of Te Puru’s trust deed allows them to change their trust deed (with the exception of certain provisions, none of which relate to Auckland Council’s role as appointor).

c)    Auckland Council resigns as a Trustee Appointor, which is provided for in the trust deed. This would mean that Te Puru trustees are appointed by the Chair of the trust and Counties Manukau Sport and effectively mean Te Puru is no longer a CCO. However the trust deed would no longer reflect the current situation, which may cause confusion.

13.     A table showing the benefits and disadvantages of each option for Te Puru and Auckland Council is provided as Attachment A.

14.     Auckland Council’s Legal Services department has reviewed the options and confirms there are no legal barriers to proceeding with any of them.

15.     In the longer term, the preferred option is b) – Te Puru changes its trust deed to remove Auckland Council as trustee appointer. As this will take some time to implement, an interim approach of exemption (option a) is recommended. This will ensure Te Puru does not need to prepare a Statement of Intent for the 2015-2016 year – this document would be due to council on 1 March if Te Puru were not exempted.

16.     The key benefit to Te Puru of changing its trust deed (and CCO exemption in the interim) is that they will no longer be required to prepare a Statement of Intent and provide the detailed half-year and annual reports associated with it. Under a changed trust deed, Auckland Council would no longer be required to manage the process of appointing trustees to the board, which provides benefits to the council (reduced staff time) and the trust (a simpler appointment process). Both the trust and council will benefit from the fact that the primary relationship with the trust would be through the funding agreement with Franklin Local Board and Parks Sports and Recreation department, which both staff and the local board consider more appropriate for a local trust.

Audit and financial implications

17.     Two of Te Puru’s issues with being a CCO are the requirements of:

·    being a public entity and subject to audit by the Office of the Auditor-General or its appointee (currently Audit New Zealand); and

·    providing half year and annual financial results to Auckland Council’s finance staff for consolidation into the council’s group result.

18.     These requirements cannot be circumvented, even by changing Te Puru’s trust deed so it is no longer a CCO. This is because Manukau City Council settled (established) the trust and significant clauses in the trust deed cannot be altered, such as the trust’s objects and restrictions on benefits.  Despite these restrictions, Te Puru’s reporting requirements will be reduced from current levels as they will no longer need to prepare a Statement of Intent or the associated reporting.

A copy of Te Puru’s trust deed is provided as Attachment B.

Consideration

Local Board Views and Implications

19.     Franklin Local Board supports the recommendation that Te Puru change its trust deed to remove Auckland Council as a trustee appointer, with exemption as an interim measure. The local board agrees that the lease and funding agreement are the appropriate mechanisms for managing council’s relationship with Te Puru. The local board agree that the relationship with this local trust should be with the relevant local board, rather than the regionally-focused governing body, as is the case for CCOs.

Maori Impact Statement

20.     Te Puru undertakes a range of activities that contribute to Māori well-being, which it reports on as part of its six-monthly reports. However, there are a wide range of community organisations that are not CCOs making a similar contribution. Through reporting against its funding agreement and engagement with Franklin Local Board, Te Puru can continue to inform the council of its contribution to Māori well-being.

General

21.     The Te Puru trust board supports these recommendations and trustees are working with council staff to identify and progress the required changes to the trust deed.

Implementation Issues

22.     Legal Services has noted that they would be willing to work with Te Puru trustees to facilitate the necessary changes to the trust deed. Legal Services also recommends reviewing the lease (currently under negotiation) and funding agreement to determine if any consequential changes would need to be made to those documents.

Attachments

No.

Title

Page

aView

Change options analysis

15

bView

Te Puru trust deed

17

      Signatories

Authors

Kirsty Colquhoun - Senior Advisor

Authorisers

John Bishop - Treasurer  and Manager CCO Governance & External Partnerships

Stephen Town - Chief Executive

 


Council Controlled Organisations Governance and Monitoring Committee

03 February 2015

 



Council Controlled Organisations Governance and Monitoring Committee

03 February 2015

 



























Council Controlled Organisations Governance and Monitoring Committee

03 February 2015

 

Highbrook Park Trust - Winding up of the Trust

 

File No.: CP2015/00389

 

  

Purpose

1.       To approve the wind up the Highbrook Park Trust, which will result in the transfer of the park land currently owned by the Trust into Auckland Council ownership.

Executive Summary

2.       The Highbrook Park Trust (the Trust) is a legacy 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.  Council provides an annual grant to the Trust to maintain the park.

4.       The Trust Deed provides that the Trust will 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, as confirmed in the Trust Deed dated 8 August 2000.

5.       Once wound up, the Trust Deed states that the land owned by the Trust must be transferred to council “to be held by the Council on trust for any charitable purpose or purposes in the region approved by the Council as being as similar as is practicable to the objects for which the Trust was established”

6.       The trustees must apply any residual trust funds remaining after the Trust has met all its costs, expenses and liabilities, “to any charitable purpose or purposes in the region approved by the Council as being as similar as is practicable to the objects for which the Trust was established”

7.       The trustees are preparing to wind up the Trust and are working to ensure a smooth transition of ownership of the park.

8.       This report recommends that council consents to the winding up of the Trust, as:
a)           the Trust Deed requires the Trust to be wound up in August 2015;

          b)           the objectives of the Trust have been achieved; and

          c)           there are no new financial implications for council, as council currently provides an annual grant to the Trust to maintain the park.  These budgeted funds can continue to be applied to the maintenance of the park in the future.

 

Recommendation/s

That the Council Controlled Organisations Governance and Monitoring Committee:

a)      consent to the Highbrook Park Trust being wound up on a date to be confirmed as soon as is practical after 8 August 2015.

b)      authorise the Manager, CCO Governance and External Partnerships, to confirm (with the Trustees of the Trust) the date on which the Trust will be wound up on.

c)      agree that the land owned by the Highbrook Park Trust, following the transfer of it to council as a public park, will be managed in a manner consistent with the objects of the Trust.

d)      authorise the Manager, CCO Governance and External Partnerships to execute any documents on behalf of council, and take all necessary steps associated with the winding up of the Trust.

 

Discussion

9.       The Trust was established in August 2000 by the Manukau City Council and Highbrook Development Limited.  It is a legacy Council Controlled Organisation (CCO).  The purpose of the Trust was to acquire, establish and maintain a park on the Waiouru Peninsula (adjacent to the Highbrook Business Park in Pakuranga) for the benefit of the public of the region.

10.     The other objectives of the Trust are to:
a)           ensure the effective, efficient and safe use of the park;

          b)           protect environmentally sensitive and geologically important areas within the park;

          c)           ensure that uses and activities within the park are compatible with the adjoining communities; and

          d)           maintain references within the park to the historic uses of the land.

11.     Approximately 30 hectares of land was transferred to the Trust initially, and an additional 10 hectares was acquired and transferred subsequently. The Business Park has been developed in stages and the park areas associated with each stage have been transferred to the Trust.

12.     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 a management fee to the Trust to meet the Trust’s annual budgeted expenses including park maintenance.

13.     The Trust Deed provides for the lifetime of the Trust to be limited to a maximum of 15 years and thereafter all the Trust’s property will transfer to council.

14.     The trustees are preparing to wind up the Trust and have been in discussions with council staff to ensure a smooth transfer of title(s) to the park land from the Trust to council.

15.     This report recommends that council consents to the Trust terminating on 8 August 2015 (or on a date as soon as is practical thereafter by mutual agreement).  The reasons for this recommendation are as follows:
a)           This was the intention when the Trust was initially established;

          b)           The objectives of the Trust have been achieved; and

          c)           There are no new budget issues associated with council taking ownership of the park land.  This is discussed further in paragraph 21.

Consideration

Local Board Views and Implications

16.     The Howick Local Board will be consulted, as it will assume decision-making responsibility for the park following the transfer(s).

Maori Impact Statement

17.     The decision whether to consent to the winding up of the Trust does not have an impact on issues of significance to iwi, as there will be no changes to how the park land is managed on a day to day basis.

18.     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.

General

19.     This report does not trigger council’s significance policy.

Implementation Issues

20.     No implementation issues have been identified. 

21.     The Trust currently uses the same maintenance contractors as council does, so there will be continuity in the maintenance of the park.  Maintenance costs will continue to be met from the funds budgeted for the annual grant which council currently provides to the Trust to maintain the park. 

 

Attachments

There are no attachments for this report.    

Signatories

Authors

Alastair Cameron - Principal Advisor CCO Governance and External Partnerships

Authorisers

John Bishop - Treasurer  and Manager CCO Governance & External Partnerships

Stephen Town - Chief Executive

     

    



[1] The report is available online: http://www.aucklandcouncil.govt.nz/SiteCollectionDocuments/aboutcouncil/committees/ccostrategyreviewsubcommittee/meetings/ccostrategyreviewsubcommitteeag20121205.pdf