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, 1 December 2015

9.30am

Room 1, 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

25 November 2015

Contact Telephone: (09) 890 8126

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.

Independent Māori Statutory Board

· Members of the Independent Māori Statutory Board who are appointed members of the committee remain.

· Independent Māori Statutory Board members and staff remain if this is necessary in order for them to perform their role.

Staff

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

· Other 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.

Council Controlled Organisations

· Representatives of a Council Controlled Organisation can remain only if required to for discussion of a matter relevant to the Council Controlled Organisation.

Council Controlled Organisations Governance and Monitoring Committee

01 December 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

7 Extraordinary Business 7

8 Notices of Motion 8

9 CCO Governance and Monitoring Committee Forward Work Programme 9

10 Appointment of trustee to Te Motu a Hiaroa Governance Trust 17

11 2016/2017 Letters of Expectation to substantive Council Controlled Organisations 21

12 Consideration of Extraordinary Items

1 Apologies

An apology from Cr D Quax has 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, 3 November 2015, 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 7.7 provides for Public Input. Applications to speak must be made to the Democracy Advisor, in writing, no later than one (1) clear working day 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 6.2 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 one (1) day’s 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 6.1 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

01 December 2015

CCO Governance and Monitoring Committee Forward Work Programme

File No.: CP2015/24358

Purpose

1. To approve the Council Controlled Organisation (CCO) Governance and Monitoring Committee (the committee) 2016 Forward Work Programme.

Executive Summary

2. This report recommends a forward work programme for the CCO Governance and Monitoring Committee. The purpose of the programme is to enable the committee to manage its workflow, deliver on its priorities, and be well informed of the key decisions required over the year.

3. The work programme is part of a package of governance changes introduced across governing body committees and follows the adoption of a revised Terms of Reference by the Governing Body in May 2015. All committees of the whole have approved their forward work programmes and this initiative is now being rolled out to all other committees.

4. A proposed programme is appended to this report as Attachment A. The programme will be reviewed in mid-2016. The intention is to review all work programmes six-monthly, subject to changes in committee structures and delegations following the 2016 local government elections.

Recommendation/s

That the Council Controlled Organisations Governance and Monitoring Committee:

a) approve the Council Controlled Organisation Governance and Monitoring Committee 2016 forward work programme under Attachment A of the agenda report, including:

i) the proposed programme of workshops between the committee members and Council Controlled Organisation boards;

ii) the proposed changes to quarterly reporting at committee meetings.

Comments

5. The Executive Leadership Team (ELT) has proposed that all committees should have agreed forward work programmes by the end of 2015. This is to enable the committee to manage its workflow, deliver on its priorities, and have greater visibility of the key decisions required over the year.

Work programme alignment with the Committee Terms of Reference

6. Each committee’s work programme should be based on the Terms of Reference (delegations) approved by the governing body for that committee. The delegations for the CCO Governance and Monitoring Committee (Attachment B) state that the committee is responsible for undertaking Auckland Council’s responsibilities that relate to CCOs.

7. In particular, the committee is responsible for setting policy relating to governance of CCOs, director appointments, approving statements of intent (SOIs), and monitoring CCO performance. The committee is also responsible for oversight and appointments to exempt CCOs and other arm’s length entities such as Council Organisations (COs).

CCO Governance and Monitoring Committee forward work programme

8. A draft work programme for the committee can be found under Attachment A. The draft programme includes an explanation of why the work is being undertaken, the committee decisions required, the fit with committee delegations, and approximate timing.

9. It is acknowledged that new work not currently listed on the programme is likely to arise for a variety of reasons. Staff will provide a brief justification for any work being reported that is not part of the agreed work programme.

10. The programme covers four categories of work that fit with the committee’s delegations:

a. CCO Governance - This covers the director appointments programme, the board intern programme, the letters of expectation and statements of intent, in regards to the substantive CCOs.

b. CCO Monitoring - The committee is responsible for monitoring CCO performance. CCOs are legislatively required to provide half year and annual reports. The reports under this category refer to monitoring responsibilities regarding substantive CCOs.

c. Legacy CCOs and COs - This category covers any governance and monitoring responsibilities of the committee in regards to COs and legacy CCOs, including those exempted from reporting responsibilities. Reports in this category cover board and trustee appointments and, where applicable (non-exempt CCOs), approval of statements of intent, and performance monitoring reports (half year and annual).

d. Other arm’s-length entities - This category covers the programme of director appointments to entities part-owned by council or where council has a role in the appointment of trustees or directors. Reports in this category cover appointments to entities such as the Auckland War Memorial Museum, MOTAT, Auckland Regional Amenities Funding Board, and Tamaki Redevelopment Company.

Proposed changes to the committee’s annual work programme

First and third quarter reporting

11. On 8 October 2015 a proposal was made to committee members via email to discontinue the face to face meetings with CCO Boards for first and third quarter reports. These reports would still be required but would be circulated to committee members by memo with an open opportunity to ask questions of the CCO Chief Executive or Board by email or letter. Half year and fourth quarter reports would still be reported to the committee with the CCO Board and executive team in attendance.

12. It was also proposed that staff continue to circulate annual reports to councillors and only bring these to committee if they differ significantly from fourth quarter results. Council’s legislative requirements under the Local Government Act 2002 will continue to be exceeded under this proposal as the provisions only require half year and annual reports and consideration of the performance reports is not required in a public forum. This would free the committee up significantly, allowing for the second element of the proposal.

An annual programme of workshops between the committee and CCO Boards

13. An ongoing programme of workshops between committee members and the CCO Board was also proposed (two per annum for Auckland Transport and Watercare and one per annum for other CCOs).

14. The purpose of these workshops is to enhance the relationships between the CCO Board and the councillors and to discuss longer term and region–wide strategic matters in an informal forum. Where possible, these workshops will be scheduled during times that have already been scheduled for CCO Governance and Monitoring committee meetings.

15. The draft forward work programme also includes information on the proposed workshop programme for the first half of 2016.

Te Toa Takitini – Māori Responsiveness High Performance Council

16. Te Toa Takitini is council’s strategic top-down council-family approach to improving Māori responsiveness. Te Toa Takitini’s work programmes and reporting mechanisms enable tracking of activities and budget that contribute to significantly lifting Māori, economic, social and cultural well-being, strengthen council’s effectiveness for Māori, and optimise post-Treaty settlement opportunities for the benefit of mana whenua and the wider public of Auckland.

17. CCO Chief Executives are part of the Te Toa Takitini executive leadership group and are delivering on activities within Te Toa Takitini’s work programme areas. Progress reports on Te Toa Takitini activities are provided quarterly to the executive leadership group, the joint IMSB GB meeting, and to the Finance and Performance Committee. Information on Te Toa Takitini activities delivered by CCOs will also be visible through CCOs’ reporting to the CCO Governance and Monitoring Committee.

Consideration

Local Board views and implications

18. The intention is that formally adopting committee work programmes will help to inform local board work programmes over time. The Local Board Services team are also working with local boards to develop work programmes aligned to local board plans and agreements and the annual operational work programmes agreed with council departments and CCOs.

Māori impact statement

19. Māori, as stakeholders in the council are affected and have an interest in any report on the performance results of CCOs and in council’s ability to undertake long term strategic matters with its CCOs. However the proposed changes to reporting practices do not impact specific outcomes or activities relating to Māori.

Implementation

20. If approved, staff will notify CCO Chairs and Chief Executives of changes to reporting requirements made by the committee and of the proposed annual programme of workshops.

21. Staff will also review the forward work programme in mid-2016 and report to the committee with any proposed changes for consideration.

Attachments

No.	Title	Page
a View	CCO Governance and Monitoring Committee 2016 Work Programme	13
b View	CCO Governance and Monitoring Committee Terms of Reference (Resolution Number GB/2013/132)	15

Signatories

Authors

Alastair Cameron - Principal Advisor CCO Governance and External Partnerships

Rose Leonard - Principal Advisor

Authorisers

Phil Wilson - Governance Director

Stephen Town - Chief Executive

Council Controlled Organisations Governance and Monitoring Committee

01 December 2015

Appointment of trustee to Te Motu a Hiaroa Governance Trust

File No.: CP2015/24546

Purpose

1. To appoint the Auckland Council Manager of Parks and Recreation Policy as a trustee to Te Motu a Hiaroa (Puketutu Island) Governance Trust (the Governance Trust).

Executive Summary

2. Watercare Services Ltd (Watercare) is undertaking a 35 year programme to deposit biosolids in an excavated site on Te Motu a Hiaroa. At the same time, Watercare has established long-term governance structures to rehabilitate the island to become a regional park in conjunction with council and iwi. The Governance Trust is one of two trusts and is technically a CCO. It has been formally exempted from the statutory reporting requirements of a CCO.

3. On 2 July 2014, the Council Controlled Organisation (CCO) Governance and Monitoring Committee approved the appointment of four council staff members as trustees to the Governance Trust.

4. The appointment of these trustees was to be executed through a letter from the Auckland Council chief executive to the Governance Trust once the ‘Vision Document’ outlining council’s obligations for the future development of the island was finalised. The ‘Vision Document’ now meets with council’s requirements and is ready to be approved by the Governance Trust.

5. Since that time, one of the four original approved trustees has left council’s employ and should be replaced by a member of staff with the necessary skills to continue planning the regional park elements of the island. On 14 May 2013 the Parks, Recreation and Heritage Forum agreed that it would be best to appoint staff as trustees in the initial stages of the development of the regional park. This report recommends the appointment of the Manager Parks and Recreation Policy, Mr Rob Cairns.

Recommendation/s

That the Council Controlled Organisations Governance and Monitoring Committee:

a) approve the appointment of the Manager Parks and Recreation Policy, Mr Rob Cairns, to the Te Motu a Hiaroa Governance Trust, replacing the approval of the Manager Community Policy and Planning, Mr Anaru Vercoe.

b) authorise the chief executive to execute this appointment by giving written notice to the Governance Trust as required under clause 7.6 of Te Motu a Hiaroa (Puketutu Island) Governance Trust Deed.

Comments

Background - Te Motu a Hiaroa projects and the Governance Trust.

6. Watercare has been granted consent to deposit 4.4 million tonnes of treated biosolids on Te Motu a Hiaroa over approximately 46 ha during a project lasting 35 years. Once completed, the topography of the Motu will represent as far as possible, the original volcanic landform.

7. In the negotiations to realise Watercare’s proposal, agreements were made with the Kelliher Charitable Trust to acquire the island and obtain a lease to enable the project to commence. At the same time, council has been granted a parallel 999 year lease, renewable in perpetuity, for the purposes of a public park.

8. As a result of consent conditions for the biosolids project, agreements have been reached with three iwi entities to hold the underlying title to the island. The three iwi entities are Waikato Tainui Te Kauhanganui Incorporated, Te Kawerau Iwi Tribal Authority Incorporated, and Makaurau Marae Maori Trust. These iwi entities will become trustees of a separate trust - Te Motu a Hiaroa Charitable Trust (the Island Trust) and will be recognised as kaitiaki of the island.

9. The agreements arising from the consent also included the establishment of the Governance Trust, which will have representation from all parties, being Auckland Council, Watercare and the three iwi entities. The purpose of the Governance Trust is to manage a trust fund and provide for the development and operation of the island as public open space. The Governance Trust will collect revenue from the leases and tenancies on the island, and it may receive other discretionary grant funding (from council or other sources) from time to time.

10. The Governance Trust will also be the key forum for developing management plans and achieving consensus between Watercare, the iwi entities and council. However, the Governance Trust decisions do not bind council (or any other party), and council retains control of its discretionary funding decisions in relation to the regional park and other rights and obligations under the Puketutu Settlement agreements.

Appointment to the Governance Trust

11. Under the provisions of the Governance Trust deed, the three iwi entities are together able to appoint four trustees, Watercare four and the Governing Body four. On 2 July 2014, the CCO Governance and Monitoring Committee resolved to appoint four council staff members as trustees and to execute this appointment through the chief executive once the ‘Vision Document’ was finalised to council’s satisfaction. The Vision document has now been amended to include all changes required by council. It outlines how the island will be developed and managed and sets out the roles and obligations of council, Watercare and iwi.

12. In the 2014 report, the appointed trustees were:

i) Manager Parks, Sports and Recreation Mr Ian Maxwell

ii) Manager Community Policy and Planning, Mr Anaru Vercoe

iii) Manager Regional and Specialist Parks, Mr Mace Ward

iv) Manager Environmental Services, Ms Gael Ogilvie

13. Since Mr. Anaru Vercoe no longer works at council, a replacement council trustee should be appointed. It is recommended that the Manager Parks and Recreation Policy, a position currently held by Mr. Rob Cairns be appointed. Over the next few years there is a requirement to develop further planning documents pertaining to the future of the island and it is desirable that a person with expertise in open space planning be appointed to the Governance Trust. Mr. Cairns has these skills.

Consideration

Local Board views and implications

14. The Mangere-Otahuhu Local Board had previously formally sought direct representation on the Governance Trust. This matter was discussed on 14 May 2013 by the Parks Recreation and Heritage Forum, who agreed that rather than the local board having direct representation, senior managers would serve as trustees for the initial stages of the Governance Trust, while the planning of the regional park is still underway.

15. It was also agreed that staff would obtain the view of Mangere-Otahuhu Local Board on the operations and establishment of a ‘vision’, policy and funding matters for Te Motu a Hiaroa Regional Park and report to the Parks, Recreation and Heritage Forum at least every six months. In this political term, those responsibilities now fall to the Parks, Recreation and Sport Committee as the delegation for Te Motu a Hiaroa Regional Park is with the Governing Body of the council.

Māori impact statement

16. The island, known as Te Motu a Hiaroa, was named after the sister of Rakataura, a tohunga of the Tainui waka. As a site of extended Māori occupation, it is highly significant to tangata whenua and contains many sites and associations of cultural importance. The proposed agreements with iwi have recognised the island as taonga to the people of Tamaki Makaurau.

17. There are a number of iwi with an expressed interest in Te Motu a Hiaroa. Through the negotiations for Watercare to obtain resource consent, three iwi entities were given particular recognition and in forming the Island Trust will acquire freehold title to the island, and Oruarangi Creek.

Implementation

18. The Chief Executive will execute the trustee appointments by giving “written notice to the Trust” as required under clause 7.6 of the Trust Deed.

Attachments

There are no attachments for this report.

Signatories

Author

Rose Leonard - Principal Advisor

Authorisers

Phil Wilson - Governance Director

Stephen Town - Chief Executive

Council Controlled Organisations Governance and Monitoring Committee

01 December 2015

2016/2017 Letters of Expectation to substantive Council Controlled Organisations

File No.: CP2015/24630

Purpose

1. To approve the 2016/2017 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 2016-2019.

4. Six LoEs are attached for the approval of the committee.

Recommendation/s

That the Council Controlled Organisations Governance and Monitoring Committee:

a) approve the 2016/2017 Letters of Expectation for Auckland Council Investments Limited, Auckland Tourism Events and Economic Development, Auckland Transport, Regional Facilities Auckland Limited, Watercare Services Limited and Panuku Development Auckland

b) authorise the Mayor or the Deputy Mayor as the CCO Governance and Monitoring Committee Chair to approve the final 2016/2017 Letters of Expectation for the substantive Council Controlled Organisations, incorporating:

i) changes agreed by this committee

ii) minor editorial changes.

Comments

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

6. 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 2016-2019.

7. 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.

8. Council operational and governance imperatives on the CCOs that are enduring in nature are included in the CCO Governance Manual, and therefore not considered necessary to include in the LoE and SOI.

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

10. It is recommended that the Mayor or the Deputy Mayor as the CCO Governance and Monitoring Committee Chair approve the inclusion of any changes made by this Committee as part of today’s discussion.

Consideration

Local Board views and implications

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

12. CCOs need to be informed of local board priorities and objectives in local board plans and ensure these are considered through annual SOI planning.

Māori impact statement

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

14. For the 2016/2017 some LoEs specifically request that initiatives that contribute to Māori well-being are identified in work plans. This request is only included in the letters to CCOs that have not articulated these initiatives yet.

Implementation

15. The 2016/2017 LoEs will be sent to board chairs of CCOs directly after any approved changes have been made. This will allow the CCOs time to reflect council’s expectations in their draft SOIs which are due on 1 March 2016.

Attachments

No.	Title	Page
a View	Draft 2016/2017 Letter of Expectation - Auckland Transport	23
b View	Draft 2016/2017 Letter of Expectation - Watercare Services Ltd	27
c View	Draft 2016/2017 Letter of Expectation - Panuku Development Auckland Ltd	29
d View	Draft 2016/2017 Letter of Expectation - Auckland Council Investments Ltd	31
e View	Draft 2016/2017 Letter of Expectation - Regional Facilities Auckland	33
f View	Draft 2016/2017 Letter of Expectation - Auckland Tourism, Events and Economic Development Ltd	35

Signatories

Author

Rose Leonard - Principal Advisor

Authorisers

Phil Wilson - Governance Director

Stephen Town - Chief Executive