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 March 2016

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

23 February 2016

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 March 2016

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 Council Controlled Organisations Second Quarter Reports for 31 December 2015 9

10 Board Interns 2016 117

11 Amendment to Trust Deed: Community Education Trust Auckland (COMET) 121

12 Consideration of Extraordinary Items

PUBLIC EXCLUDED

13 Procedural Motion to Exclude the Public 143

C1 Board Appointments: Mangere Mountain Education Trust (MMET) 143

1 Apologies

Apologies from Cr LA Cooper and Cr R Clow 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, 1 December 2015, 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 March 2016

Council Controlled Organisations Second Quarter Reports for 31 December 2015

File No.: CP2016/02554

Purpose

1. To receive the reports from each substantive Council Controlled Organisation (CCO) for the second quarter ending 31 December 2015.

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. The attached reports from each of the CCOs provide an update on strategic issues, achievements, risks and performance.

4. Each CCO is also requested to include sections outlining any key Local Board issues and contribution to Māori outcomes.

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 key risks and issues, and the status of the operating and financial performance.

6. These reports support the consolidated group financial statements for the second quarter ending 31 December 2015.

Recommendation/s

That the Council Controlled Organisations Governance and Monitoring Committee:

a) receive the report for the second quarter ending 31 December 2015 from Auckland Council Investments Limited

b) receive the report for the second quarter ending 31 December 2015 from Watercare Services Limited

c) receive the report for the second quarter ending 31 December 2015 from Auckland Transport

d) receive the report for the second quarter ending 31 December 2015 from Regional Facilities Auckland

e) receive the report for the second quarter ending 31 December 2015 from Auckland Tourism, Events and Economic Development

f) receive the report for the second quarter ending 31 December 2015 from Panuku Development Auckland.

Attachments

No.	Title	Page
a View	ACIL quarterly report for 31 December 2015	11
b View	Watercare quarterly report for 31 December 2015	23
c View	Auckland Transport quarterly report for 31 December 2015	35
d View	RFA quarterly report for 31 December 2015	53
e View	ATEED quarterly report for 31 December 2015	71
f View	Panuku Development Auckland quarterly report for 31 December 2015	97

Signatories

Authors

Robert Irvine - Financial Planning Manager CCOs

Authorisers

Matthew Walker - GM Financial Strategy and Planning

Stephen Town - Chief Executive

Council Controlled Organisations Governance and Monitoring Committee

01 March 2016

Board Interns 2016

File No.: CP2016/01450

Purpose

1. To receive the update on the Board Intern Programme, and to appoint a councillor and Independent Māori Statutory Board (IMSB) member of the CCO Governance and Monitoring Committee to the Board Intern Appointment Panel.

Executive Summary

2. Council will select up to six candidates to take part in the Board Intern programme in 2016 – 17.

3. The candidates will be short-listed and interviewed by an appointment panel made up of

· a councillor

· an IMSB member

· Senior council officer from the mayoral office

· CCO Governance and External Partnerships representative

4. This report requests appointment of a councillor and an IMSB member from the CCO Governance and Monitoring Committee to the Board Intern Appointment Panel.

Recommendation/s

That the Council Controlled Organisations Governance and Monitoring Committee:

a) appoint a councillor and an IMSB member from the CCO Governance and Monitoring Committee to the Board Intern Appointment Panel.

Comments

5. Auckland Council is advancing its diversity programme through the Board Intern programme with the appointment of potential future directors who meet its pre-established criteria set up under the Appointment and Remuneration policy for board members of Council Controlled Organisations (CCO).

6. One of Auckland Council’s approaches to increasing CCO board diversity is to widen the pool of candidates so that women, young people and people from a range of ethnic backgrounds, who have the right skills but perhaps have not come through the traditional company director channels, have an opportunity to be considered as possible directors.

7. The success of this programme has received interest from external organisations in New Zealand and Australia who have sought to learn from council’s experience and expertise gained through the development and implementation of the Pathways to Governance programme.

8. The CCO Governance and Monitoring Committee approved the Board Intern programme in 2013 and by 30 June 2016 eight Board Interns will have undergone the 12-month scholarship. Board interns develop their governance skills through attendance at monthly CCO meetings, a mentoring programme from Chair, Deputy Chair and other board members, commercial governance training through the Institute of Directors, and provision of other networking and development opportunities while interning on the board.

9. The Board Intern Appointment Panel includes:

· a councillor

· an IMSB member

· Senior council officer from the mayoral office

· CCO Governance and External Partnerships representative

10. The Board Intern Appointment Panel are delegated to interview and recommend a candidate for :

· Auckland Tourism, Events and Economic Development

· Regional Facilities Auckland

· Watercare Services Limited

· Auckland Transport

· Panuku Development Agency – to be confirmed

· Auckland Regional Amenities Funding Board – to be confirmed

11. A proposed timeline for the board appointment programme is outlined in Table 1.

Table 1. – Proposed Timeline

What	Purpose	Who	Date (by when)
Report	Appoint a councillor and IMSB member to Board Intern Appointment Panel	CCO Governance and Monitoring Committee	1 March 2016
Candidate Search	Advertising and Expression of Interest Programme	Auckland Council	2 – 20 March Closing date : 20 March
Candidate Selection	Selection of candidates for interview	Board Intern Appointment Panel	1 – 10 April
Candidate Interviews	Interview	Board Intern Appointment Panel	11 – 29 April 2016
Report	Approve candidates chosen for a Board Intern scholarship	CCO Governance and Monitoring Committee	3 May 2016 (alternative date if required 7 June 2016)

Consideration

Local Board views and implications

12. The Board intern programme is the delegated decision of Auckland Council Governing Body. Local boards are able to participate in this process through the Expression of Interest Programme through the nomination programme.

Māori impact statement

13. The intern programme for potential board appointees is intended to provide opportunities to identify a wider pool of candidates for appointment to increase the diversity of appointments. The programme is inclusive of Māori candidates.

14. The CCOs and ARAFB (to be confirmed) support the continuation of the Board Intern programme into their work programmes. CCOs will incorporate a scholarship amount into their current board expenses.

Attachments

There are no attachments for this report.

Signatories

Authors

Josie Meuli - Senior Advisor

Authorisers

Alastair Cameron - Manager CCO Governance and External Partnerships

Phil Wilson - Governance Director

Stephen Town - Chief Executive

Council Controlled Organisations Governance and Monitoring Committee

01 March 2016

Amendment to Trust Deed: Community Education Trust Auckland (COMET)

File No.: CP2016/00005

Purpose

1. To approve an amendment to the trust deed of Community Education Trust Auckland (COMET).

Executive Summary

2. COMET has advised that it wishes to make an amendment to its trust deed to expand the definition of “areas of greatest education need” so that it is not restricted to geographic areas, but can also include other demographic areas where a need is identified.

3. As the settlor of COMET’s trust deed, Auckland Council is required to approve any variations to the deed. This report seeks that approval.

Recommendation/s

That the Council Controlled Organisations Governance and Monitoring Committee:

a) approve an amendment to clause 1.1 of the deed of Community Education Trust Auckland (COMET), as follows:

i) in clause 1.1 the definition of “Areas of greatest education need” is amended by substituting the existing wording with:

“means those areas (whether geographical regions of Auckland, demographic groups or sections of educational curriculum) determined by the Trustees from time to time as having the greatest education needs”

b) delegate to the Chief Executive of Auckland Council the authority to sign the Deed of Amendment on behalf of Auckland Council.

Comments

4. Clause 1.1 of COMET’s trust deed currently reads:

“Areas of greatest education need” means those parts of Auckland that the Trustees determine from time to time have the greatest education need.

5. COMET feels that high education needs are not geographically restricted and may also be identified by other demographic characteristics, such as population groups (e.g., gender or ethnicity), age groups, or even parts of the curriculum.

6. As such, COMET wishes to update the definition of “areas of greatest education need” in its deed to expand beyond geographical locations, so that “areas” can be defined depending on where need is identified.

7. Clause 14.1 of COMET’s deed allows for variations of the trust deed, provided that an amendment does not affect the Trust’s charitable status (clause 14.1 a); and is not in conflict with the objects of the Trust (Clause 14.1 b).

8. Council’s legal department has reviewed this amendment in light of those clauses and has determined that it is within scope.

9. COMET’s board has approved this amendment, as required by clause 14.1 (e).

10. Auckland Council is the settlor of COMET’s trust deed and is required by clause 14.1 (d) to approve any variation to the document. The committee is now asked to consider the amendment and provide a formal decision on the matter.

Consideration

Local Board views and implications

11. COMET delivers regional outcomes and this change to its deed will have impacts across the region. As such, the views of particular local boards were not sought for this report.

Māori impact statement

12. All of COMET’s work focuses on achieving the education and skills goals of the Auckland Plan, including transformational shift number 6 “Significantly lift Māori social and economic well-being.

13. COMET works closely with Māori stakeholders to develop and deliver all its programmes, and many have particular benefits to Māori (e.g., Tāmaki Makaurau Education Forum).

14. While this change to the COMET trust deed is not aimed at any particular group, it may eventually be used to benefit Māori, should Māori be identified as having particular education needs.

Implementation

15. Pursuant to the approval of this committee, a Deed of Amendment outlining the approved amendments to the deed will be signed by COMET and Auckland Council.

Attachments

No.	Title	Page
a View	Trust Deed: COMET	123

Signatories

Authors

Rita Bento-Allpress – Senior Advisor, CCO Governance and External Partnerships

Authorisers

Alastair Cameron – Manager CCO Governance and External Partnerships

Phil Wilson - Governance Director

Stephen Town - Chief Executive

Council Controlled Organisations Governance and Monitoring Committee

01 March 2016

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: Mangere Mountain Education Trust (MMET)

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 private information about the candidate for the position of trustee in the Mangere Mountain Education Trust.

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.