Agenda of Governing Body - 15 December 2016

I hereby give notice that an ordinary meeting of the Governing Body will be held on:

Date:

Time:

Meeting Room:

Venue:

Thursday, 15 December 2016

9.30am

Reception Lounge
Auckland Town Hall
301-305 Queen Street
Auckland

Governing Body

OPEN AGENDA

MEMBERSHIP

Mayor	Hon Phil Goff, JP
Deputy Mayor	Bill Cashmore
Councillors	Cr Dr Cathy Casey	Cr Dick Quax
	Cr Ross Clow	Cr Greg Sayers
	Cr Fa’anana Efeso Collins	Cr Desley Simpson, JP
	Cr Linda Cooper, JP	Cr Sharon Stewart, QSM
	Cr Chris Darby	Cr Sir John Walker, KNZM, CBE
	Cr Alf Filipaina	Cr Wayne Walker
	Cr Hon Christine Fletcher, QSO	Cr John Watson
	Cr Richard Hills
	Cr Penny Hulse
	Cr Denise Lee
	Cr Mike Lee
	Cr Daniel Newman, JP

(Quorum 11 members)

Elaine Stephenson

Senior Governance Advisor

9 December 2016

Contact Telephone: (09) 890 8117

Email: elaine.stephenson@aucklandcouncil.govt.nz

Website: www.aucklandcouncil.govt.nz

Governing Body

15 December 2016

ITEM TABLE OF CONTENTS PAGE

1 Affirmation 5

2 Apologies 5

3 Declaration of Interest 5

4 Confirmation of Minutes 5

5 Acknowledgements 5

6 Petitions 5

7 Public Input 5

8 Local Board Input 5

9 Extraordinary Business 5

10 Notices of Motion 6

11 Annual Budget 2017/18 – Mayoral Proposal on items for Public Consultation 7

12 Greenfleet conservation programmes on Regional Parks - item referred from 6 December 2016 Environment and Community Committee meeting 9

13 Committee Terms of Reference - Amendments 15

14 Governance framework review - process for implementation 17

15 Process for the Appointment of Independent Members to the Audit and Risk Committee 185

16 Report back from C40 Mayors Summit in Mexico City 187

17 Consideration of Extraordinary Items

PUBLIC EXCLUDED

18 Procedural Motion to Exclude the Public 189

C1 City Rail Link Limited Board Chair Appointment 189

C2 Recommendations from the Audit and Risk Committee - Appointment of External Co-opted Committee Members to the Audit and Risk Committee 189

1 Affirmation

His Worship the Mayor will read the affirmation.

2 Apologies

An apology from Cr D Lee has been received.

3 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.

4 Confirmation of Minutes

That the Governing Body:

a) confirm the ordinary minutes of its meeting, held on Tuesday, 1 November 2016 and the extraordinary minutes of its meeting, held on Thursday, 10 November 2016, as a true and correct record.

5 Acknowledgements

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

6 Petitions

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

7 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.

8 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.

9 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.”

10 Notices of Motion

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

Governing Body

15 December 2016

Greenfleet conservation programmes on Regional Parks - item referred from 6 December 2016 Environment and Community Committee meeting

File No.: CP2016/24636

Purpose

1. To present the recommendations of a working party appointed by the Environment and Community Committee, at its 6 December 2016 meeting. The working party was requested to report back to the 15 December 2016 Governing Body meeting.

Executive summary

2. The Environment and Community Committee was requested to rescind a previous resolution, PAR/2015/79, of the Parks Recreation and Sport Committee, related to entering a partnership agreement with Greenfleet on regional parkland and to authorise the General Manager Parks Sport and Recreation to negotiate a partnership with Greenfleet subject to a number of conditions, please refer to the original agenda report at Attachment A, which was authored by Richard Hollier, Manager Regional Parks.

3. At its 6 December 2016 meeting, the Environment and Community resolved:

Resolution number ENV/2016/9

MOVED by Chairperson P Hulse, seconded by Deputy Chairperson A Filipaina:

That the Environment and Community Committee:

a) support in principle entering into a partnership agreement with Greenfleet, subject to the working party considering acceptable alternatives to an encumbrance, to report back to the 15 December Governing Body meeting, and agree that if there are no suitable alternatives then Auckland Council commit to entering into the agreement.

b) agree that a working party, comprising of Deputy Chairperson A Filipaina, Cr C Fletcher and Chairperson P Hulse, Deputy Mayor B Cashmore, Cr M Lee and IMSB Member G Wilcox, be appointed to consider the issue of a partnership arrangement with Greenfleet.

4. The working party was appointed to consider alternative tools to the use of an encumbrance recording Greenfleet’s interest in the carbon sequestered through vegetation established by the programme to be noted on the property title in relation to entering into a partnership agreement on regional parkland with Greenfleet and to report back to the 15 December 2016 Governing Body meeting.

Recommendation/s

The recommendations of the working party will be provided once it has fully considered the issue.

Attachments

No.	Title	Page
a ⇩	Original report to 6 December 2016 Environment and Community Committee	11

Signatories

Author	Elaine Stephenson - Senior Governance Advisor
Authoriser	Stephen Town - Chief Executive

Governing Body

15 December 2016

Committee Terms of Reference - Amendments

File No.: CP2016/24371

Purpose

1. To note amendments to the Auckland Council Governing Body Terms of Reference.

Executive summary

2. His Worship the Mayor establishes the committees of the Governing Body, including membership, and the Governing Body delegates powers as appropriate.

3. Since the terms of reference were last considered by the Governing Body, the Mayor has made minor changes to membership and to committee responsibilities. These are:

(i) clarification that the Environment and Community Committee is responsible for libraries; the committee’s responsibilities have been updated to include ‘libraries’;

(ii) clarification that the Finance and Performance Committee exercises Auckland Council’s powers as a shareholder or trustee of a council-controlled organisation or council organisation; the committee’s responsibilities have been updated with the words:

“Exercise Auckland Council’s powers as a shareholder or given under a trust deed, including but not limited to modification of constitutions and/or trust deeds, granting shareholder approval of major transactions where required, exempting CCOs, and approving policies relating to CCO and CO governance.”

For the avoidance of doubt, it is not intended that this change to the terms of reference will impact on the Governing Body’s resolution (GB/2016/257) that it:

“request that a report is brought to the Appointments and Performance Review Committee with an assessment of the opportunities to improve the strategic alignment, accountability and responsiveness of Council Controlled Organisations using the current suite of accountability tools for recommendation back to the Governing Body.”

(iii) the appointment of Councillor Alf Filipaina to the Community Development and Safety and Strategic Procurement Committees

(iv) the appointment of Councillor Denise Lee to the Civil Defence Emergency Management Group Committee.

4. The updated Terms of Reference are available on the Auckland Council website.

Recommendation/s

That the Governing Body:

a) note the amendments to the Auckland Council Governing Body Terms of Reference.

b) confirm the delegation of powers and duties to enable the amended responsibilities to be performed.

Attachments

There are no attachments for this report.

Signatories

Author

Warwick McNaughton - Principal Advisor - Democracy Services

Authorisers

Marguerite Delbet - General Manager Democracy Services

Phil Wilson - Governance Director

Stephen Town - Chief Executive

Governing Body

15 December 2016

Governance framework review - process for implementation

File No.: CP2016/24671

Purpose

1. To note the completion of the independent governance framework review, and to propose that a political working party be established to oversee the consideration of recommendations stemming from the review.

Executive summary

2. The governance framework review was completed in November 2016 by an independent consultant. It looked at how the Auckland Council governance model is meeting the aim of the Auckland governance reforms, and found that while there are a number of positive aspects, there are also a number of areas for improvement. These are structured around four broad themes:

· organisational structures and culture have been challenged by the complexity of the model

· complementary decision-making, but key aspects of overlap

· lack of alignment of accountabilities with responsibilities

· Local Boards are not sufficiently empowered.

3. It is recommended that a political working party is established to consider and establish a position on the recommendations stemming from the review, with four members from the Governing Body and four from Local Boards. The political working party will report back to the Governing Body and Local Boards in April 2017, with a progress update and recommendations where possible. The political working party will finalise its recommendations by July 2017, and report back to Local Boards, and provide recommendations to the Governing Body for decisions.

Recommendation/s

That the Governing Body:

a) note that the governance framework review was initiated early this year to assess how the Auckland governance model is meeting the aim of the 2010 Auckland local government reforms

b) note that staff will progress recommendations that relate to the way the organisation supports elected members

c) agree to establish a political working party with four members from the Governing Body and four members from Local Boards to provide oversight of the work programme stemming from the governance framework review

d) agree that the four Governing Body representatives for the political working party are:

ii)

iii)

iv)

e) request the political working party to report back to the Governing Body and Local Boards in April 2017 with a progress update, and report back to Local Boards, and provide recommendations to the Governing Body for decisions, in July 2017.

Comments

Background

4. In early 2016, Auckland Council instigated a review of the Council’s governance framework as set out in the Local Government (Auckland Council) Act 2009, focussing on the complementary governance relationship between Local Boards and a Governing Body. The review did not consider Auckland Council’s CCO governance framework or the role of the Independent Māori Statutory Board (IMSB).

5. The primary purpose of the review was to assess how the Auckland governance model is meeting the aim of the Auckland governance reforms by delivering strong regional decision-making, complemented by decisions that meet diverse local needs and interests. After nearly six years since Auckland Council was established, it was an appropriate point to look at this.

6. The intention was to complete the review prior to the 2016 local government election, with a view to providing advice to the incoming council about any recommended changes. The review was carried out by an independent consultant.

7. The review focused on improvements to the governance framework, not fundamental reform. It was based on extensive interviews with elected members, staff, council-controlled organisations (CCOs) and external stakeholders, as well as review and research of foundation documents and other material.

8. A report summarising the findings of the review was issued in draft form to elected members in late August this year and discussed with elected members at workshops. The feedback received on the draft from elected members was largely supportive of the findings. The report was finalised on 18 November 2016, and incorporated some minor changes based on the feedback of the elected members. The final report is attached to this report as Attachment A.

9. This report is not recommending that the Governing Body endorse or implement the review’s recommendations immediately; rather it recommends the establishment of a political working party to consider the report and oversee the development of a work programme to explore the implications of its findings then make final recommendations to the Governing Body.

Key findings and further consideration

10. The review concluded that there were a number of positive aspects of the governance model from both a regional and local perspective. This includes the ability for the Auckland region to ‘speak with one voice’ to important stakeholders, such as central government, regarding regional strategic planning and infrastructure development, and enabling local decision-making that provides a local community focus in a way that did not exist under the previous arrangements. However, it also identified a number of areas for improvement, which fall under four key themes:

· Organisational structures and culture have not adapted to the complexity of the model: (section 6.1, pages 39 – 47)

The review found that the organisation has had challenges in responding to the unique and complex governance arrangements in Auckland, and that this has impacted on the quality of advice and support for elected members.

· Complementary decision-making, but key aspects of overlap: (section 6.2, pages 48 – 64)

The review touched on a number of decision-making functions where there is overlap between the Governing Body and Local Boards, or a lack of clarity about respective roles of the two governance arms.

· Lack of alignment of accountabilities with responsibilities: (section 6.3, pages 65 – 71)

The review found that the system of decision-making creates incentives for Governing Body members to act locally despite regional benefits and that Local Boards are incentivised to advocate for local service improvements, without having to make trade-offs required to achieve these.

· Local Boards are not sufficiently empowered: (section 6.4, pages 72 – 94)

The review identified that there are some practices that are constraining Local Boards from carrying out their role, including the inflexibility of funding arrangements and difficulties in feeding local input into regional decision-making. It also noted particular local frustrations in relation to transport decision-making.

11. It is recommended that a political working party is established to further consider and work through the review recommendations. The working party would have four members from the Governing Body and four members from Local Boards, and would:

· receive and consider the recommendations of the Governance Framework Review;

· provide oversight and direction for the development of a work programme to address the findings and recommendations of the report; and

· report back to Local Boards and to the Governing Body for decisions on final recommendations.

12. A number of the report’s recommendations are operational in nature (i.e. they are concerned with how the organisation supports elected members or how it develops staff to do this), while others involve governance decisions. In some cases, recommendations are already being progressed through existing work programmes, for example, the organisation is continuing to embed initiatives to improve the quality of advice to elected members.

Review of representation arrangements

13. The review recommends that the council consider and establish a position on the merits of ward versus at-large representation and the optimal number of Local Boards. Under the Local Electoral Act 2001, each territorial authority must carry out a periodic review of representation arrangements. Under the Local Government (Auckland Council) Act 2009 (LGACA), Auckland Council must carry out this review no later than September 2018, which must look at ward boundaries and representation arrangements, and Local Board representation arrangements. It is recommended that the number of Local Boards is also considered through this process as a basis for advocacy to the Local Government Commission.

14. A suggested timeline for the consideration of the review recommendations is presented in Table 1, along with other key dates.

Action	Due date
Political working party agreed	December 2016
Political working party agrees work programme for the governance framework review	February 2017
Political working party reports back to Local Boards and the Governing Body on progress of the review, including recommendations for change where possible	April 2017
Political working party finalises recommendations and reports back to Local Boards, and to the Governing Body for decisions	July 2017
Representation review for Auckland Council	No later than September 2018

Table 1: Suggested timeline for consideration of recommendations in the governance framework review

Local Board views and implications

15. As discussed earlier, Local Boards were extensively engaged through the governance framework review during the last term. Local Boards will also receive a copy of this report, and be asked to nominate four representatives for the political working party. The governance framework review implementation provides a significant opportunity to:

· clarify the respective roles of Local Boards and the Governing Body

· provide more decision-making autonomy to Local Boards over local services and procurement

· improve the way that the organisation supports Local Boards to carry out their role.

Māori impact statement

16. The review focuses on whether the governance framework that has been set up is giving effect to the intent of the Auckland governance reforms in a general sense; it did not look specifically at governance or representation for Māori, nor did it review the role or functions of the IMSB. However, the IMSB will have a role to play in the representation review under the Local Electoral Act 2001, which is linked to the work programme arising from the Governance Framework Review.

Implementation

17. Operationally, a programme manager will coordinate the work programme, which will be sponsored by Phil Wilson, Governance Director. The programme manager and sponsor will be the primary liaison points with the political working party.

Attachments

No.	Title	Page
a ⇩	Auckland Council Governance Framework Review	21

Signatories

Author	Phil Wilson - Governance Director
Authoriser	Stephen Town - Chief Executive

Governing Body

15 December 2016

PDF Creator

Governing Body

15 December 2016

Process for the Appointment of Independent Members to the Audit and Risk Committee

File No.: CP2016/24663

Purpose

1. To inform the Governing Body of the process for the appointment of external co-opted members to the Audit and Risk Committee.

Comment

2. On 31 March 2016, the Governing Body received from the Audit and Risk Committee a report reviewing the functioning of that committee. That report made recommendations to the Governing Body designed to increase the committee’s effectiveness. The recommendations included recommending to the incoming Mayor and Governing Body changing the composition of the committee by increasing the number of externally co-opted members to three, and reducing the number of elected members to the committee to three. Further it was recommended that one of the independent co-opted members be appointed as chairperson of the committee.

3. The proposals are based on best practice as recommended by the Auditor-General, PwC, NZ Stock Exchange (NZX) and the Institute of Directors.

4. The Governing Body resolved to recommend to the incoming Mayor and Governing Body the full terms of reference, including the proposed changes to membership, as recommended by the Audit and Risk Committee (Resolution Number GB/2016/25).

5. This recommendation has been reflected in both the adoption of the committee structure of the incoming council (Resolution Number GB/2016/232) and the Terms of Reference for those committees (Resolution Number GB/2016/237).

6. Based on the above recommendations on the composition of the committee, and the recent retirement of Mr Roy Tiffin from the committee, a recruitment process has been undertaken for two new independent members of the committee.

7. A shortlist of five suitably skilled and experienced applicants was identified. The shortlist was interviewed by a selection panel comprising Deputy Mayor Bill Cashmore, Mr Paul Conder (incumbent Independent member of the committee), and Mr Phil Wilson (Director of Governance).

8. The Governing Body will consider the recommendations of the selection panel in the confidential section of this meeting.

Recommendations

That the Governing Body:

a) note the content of the Process for the Appointment of Independent Members to the Audit and Risk Committee report.

Attachments

There are no attachments for this report.

Signatories

Author

Mark Maloney - Head of Internal Audit

Authoriser

Phil Wilson - Governance Director

Stephen Town - Chief Executive

Governing Body

15 December 2016

Report back from C40 Mayors Summit in Mexico City

File No.: CP2016/24770

Purpose

1. To report back key accomplishments and takeaways from the C40 Cities Climate Leadership (C40) 2016 Mayors Summit in Mexico City.

Executive summary

2. The C40 Cities Climate Leadership Group (C40) is a strategic global network of 90 leading cities working together by sharing knowledge and commitments to combat climate change. The group includes, amongst others, London, New York, Paris, Tokyo, Rio de Janeiro, Melbourne, Los Angeles and Guangzhou. Auckland was voted in as the 83^rd C40 city in December 2015.

3. The biannual C40 Mayors Summit was held in Mexico City from 30 November to 2 December 2016. Councillor Penny Hulse and Chief Sustainability Officer John Mauro represented Auckland Council.

4. In addition to attending a full schedule of conference events, Councillor Hulse and John Mauro:

· held formal bilateral conversations with executive and political leadership from Los Angeles, Guangzhou, Rotterdam, Stockholm, Seattle, Sydney, Oslo and Melbourne

· met with NZ Ambassador Clare Kelly to discuss trade opportunities between Mexico and New Zealand

· engaged C40 technical leads on specific best practice requirements and opportunities

· presented a well-attended mayors panel session on waste management and the circular economy

· represented Auckland as finalist for two awards at C40 awards ceremony

· held informal conversations with dozens of international city leaders, like former New York Mayor Michael Bloomberg and Paris Mayor Anne Hidalgo.

Recommendation/s

That the Governing Body:

a) receive a verbal update from the two summit attendees.

b) note the key accomplishments from the C40 Mayor’s Summit.

c) delegate to the Chairperson of the Environment and Community Committee the responsibility to follow up on related obligations and opportunities arising from the summit.

Attachments

There are no attachments for this report.

Signatories

Author	John Mauro - Chief Sustainability Officer
Authoriser	Stephen Town - Chief Executive

Governing Body

15 December 2016

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

That the Governing Body:

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 City Rail Link Limited Board Chair Appointment

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 relating to director appointments.

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 Recommendations from the Audit and Risk Committee - Appointment of External Co-opted Committee Members to the Audit and Risk Committee

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 personal information pertaining to applicants for the position of independent members of the Audit and Risk Committee.

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.