Agenda of Governing Body

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

Date:

Time:

Meeting Room:

Venue:

Wednesday, 27 June 2018

9.30am

Reception Lounge
Auckland Town Hall
301-305 Queen Street
Auckland

Tira Kāwana / Governing Body

OPEN AGENDA

MEMBERSHIP

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

(Quorum 11 members)

Sarndra O'Toole

Team Leader Governance Advisors

22 June 2018

Contact Telephone: (09) 890 8152

Email: sarndra.otoole@aucklandcouncil.govt.nz

Website: www.aucklandcouncil.govt.nz

Terms of Reference

Those powers which cannot legally be delegated:

(a) the power to make a rate

(b) the power to make a bylaw

(d) the power to adopt a long term plan, annual plan, or annual report

(e) the power to appoint a chief executive

(f) the power to adopt policies required to be adopted and consulted on under the Local Government Act 2002 in association with the long-term plan or developed for the purpose of the local governance statement

(g) the power to adopt a remuneration and employment policy.

Additional responsibilities retained by the Governing Body:

(a) approval of long-term plan or annual plan consultation documents, supporting information and consultation process prior to consultation

(b) approval of a draft bylaw prior to consultation

(c) resolutions required to be made by a local authority under the Local Electoral Act 2001, including the appointment of electoral officer

(d) adoption of, and amendment to, the Committee Terms of Reference, Standing Orders and Code of Conduct

(e) relationships with the Independent Māori Statutory Board, including the funding agreement and appointments to committees

(f) approval of the Unitary Plan

(g) overview of the implementation and refresh of the Auckland Plan through setting direction on key strategic projects (e.g. the City Rail Link and the alternative funding mechanisms for transport) and receiving regular reporting on the overall achievement of Auckland Plan priorities and performance measures.

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.

1 Affirmation

His Worship the Mayor will read the affirmation.

2 Apologies

At the close of the agenda no apologies had 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 Thursday, 24 May 2018, including the confidential section and the extraordinary minutes of its meeting, held on Thursday, 31 May 2018, as a true and correct record.

5 Petitions

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

6 Public Input

Standing Order 7.7 provides for Public Input. Applications to speak must be made to the Governance 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.

7 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.

8 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.”

9 Notices of Motion

There were no notices of motion.

Governing Body

27 June 2018

Independent Māori Statutory Board - proposed funding agreement for the 2018/2019 financial year

File No.: CP2018/05343

Te take mō te pūrongo / Purpose of the report

1. To consider the 2018/2019 funding agreement between the Auckland Council and the Independent Māori Statutory Board (IMSB).

Whakarāpopototanga matua / Executive summary

2. For the IMSB board to carry out its purpose, perform its functions and exercise its powers, the Local Government (Auckland Council) Act 2009 (LGACA) requires Auckland Council to meet the reasonable costs of the IMSB board’s operations, secretariat, the establishment of committees, and seeking and obtaining advice (Schedule 2 clause 20, subclause 1, LGACA).

3. The IMSB has drafted its work plan and proposed budget for the 2018/2019 financial year. It includes projects such as informing council’s Maori Economic Development Strategy and te Tiriti o Waitangi Audit, and other costs of the board’s operations such as salaries and board remuneration.

4. The Governing Body established a working party at its meeting of 23 February 2017 (GB/2017/16) to oversee negotiations with the IMSB and develop a recommended funding agreement, for final approval by the Governing Body.

5. The working party has considered IMSB’s (opex) budget proposal and is satisfied that the proposed total direct funding of $3.003 million (1.6 per cent) for the 2018/2019 financial year is appropriate and falls within the parameters agreed through the Long-term Plan 2018-2028. The working party recommends that the Governing Body approve the proposed funding for the 2018/2019 financial year.

6. It is further recommended that the Governing Body agrees that variations to the funding agreement of no more than $50,000 in the financial year (subject to budget being available to cover the variations) can be agreed by the chief executives of Auckland Council and the IMSB.

7. Auckland Council and the IMSB also have a Service Level Agreement which records shared services between council and the IMSB, and support services provided by third parties through council to the IMSB, such as finance, information technology and property.

Ngā tūtohunga / Recommendation/s

That the Governing Body:

a) approve the 2018/2019 funding agreement between Auckland Council and Independent Māori Statutory Board, which comprises a total direct funding of $3.003 million (opex).

b) approve that variations to the 2018/2019 funding agreement between Auckland Council and the Independent Māori Statutory Board of no more than $50,000 in the financial year can be agreed between the chief executive of the Auckland Council and the chief executive of the Independent Māori Statutory Board, subject to budget being available to cover the variations.

c) note that following approval of the proposed funding by the Governing Body, the 2018/2019 funding agreement between Auckland Council and the Independent Māori Statutory Board will be prepared and signed by the mayor and council’s chief executive and the chair and chief executive of the Independent Māori Statutory Board.

Horopaki / Context

8. The Local Government (Auckland Council) Act 2009 (LGACA) requires Auckland Council to meet the reasonable costs of the IMSB’s board’s operations, secretariat, the establishment of committees, and seeking and obtaining advice (Schedule 2, clause 20, subclause 1, LGACA).

9. The Governing Body established a political working party at its meeting of 23 February 2017 (GB/2017/16) to conduct negotiations with the IMSB and develop a recommended funding agreement, for approval by the Governing Body.

2018/2019 Budget Proposal

10. The key components of the proposed 2018/2019 budget submitted by the IMSB and considered by the working party cover these requirements and are outlined below.

11. The proposed budget covers costs of the IMSB’s board’s operations such as salaries and remuneration, and costs of strategic projects outlined in the work plan, such as monitoring and informing council’s Māori Economic Development Strategy.

12. Details of the budget proposal for both IMSB board’s operations and work plan projects are provided in the two tables below, including comparisons with the 2018/2019 financial year and percentage changes.

Tātaritanga me ngā tohutohu / Analysis and advice

Analysis

13. Overall, there is little change from the budget agreed for the current financial year. The 1.6 per cent increase for the 2018/2019 financial year from 2017/2018 is within the parameters agreed through the 2018-2028 LTP.

	2016/2017	2017/2018	2018/2019 (proposed)
Total direct funding (opex)	$2.898m	$2.956m	$3.003m
Percentage increase from previous year	2.42%	2.0%	1.6%

Business as Usual expenses

14. The budget prepared by the IMSB proposes funding for its business as usual activities. These are the activities and costs that the IMSB incurs year-on-year, such as staff costs and board member remuneration.

15. As is required by legislation, an independent review of remuneration for the IMSB board members has been conducted by Strategic Pay Limited.

16. The independent reviewer recommends that the IMSB members’ remuneration be set at 68 per cent of elected members’ remuneration, with additional allowances for the chair and deputy chair. If the Remuneration Authority determines an increase for elected members’ remuneration within the next six months, the IMSB members’ remuneration will be adjusted accordingly.

17. Increases in the proposed funding for business as usual activities and costs are broadly in line with expected inflation.

Business as Usual	2017/2018	2018/2019 Proposed	Increase/ (decrease)
Board remuneration and expenses	$824,000	$838,760	$14,760
Secretariat salaries	$1,338,000	$1,365,974	$27,974
Expenses (including audit fees)	$119,000	$119,000	$0
Professional Services	$110,000	$120,000	$10,000
Total Business as Usual	$2,391,000	$2,443,734	$52,734

18. The table below details the budget proposal for both business as usual and specific pieces of work identified in the IMSB Work Plan, including comparisons with the 2017/2018 financial year and percentage increases.

Work Plan	2017/2018	2018/2019 Proposed	Increase (decrease)
Engagement and reporting to Māori and stakeholders	$140,000	$140,000	$0
Engagement of specialist Māori expertise for IMSB’s input into council projects/plans work program	$110,000	$300,000	$190,000
Te Tiriti o Waitangi Audit	$160,000	$40,000	($120,000)
Research, management and monitoring of Māori Plan outcomes	$55,000	Nil	($55,000)
Treaty Audit Assessment of Resource Management Act (RMA) Māori Provisions	Nil	$30,000	$30,000
Monitoring and information of the council’s Māori Economic Development Strategy	$100,000	$50,000	($50,000)
Total Work Plan	$565,000	$560,000	($5,000)
Grand Total (BAU + Work Plan)	$2,956,000	$3,003,734	$47,734
Overall percentage increase			1.6%

19. The significant changes to the Work Programme funding are an increase in engaging specialist Māori expertise for IMSB’s input into council projects/plans work programme and a new addition to Te Tiriti o Waitangi Audit covering assessment of RMA Māori Provisions. These increases are offset by reductions in other areas of the work programme.

20. The total proposed funding reflects a 1.6 per cent ($47,734) increase from 2017/2018, which is less than the rates increases proposed through the LTP.

21. The table summarises the total direct opex and capex funding in the 2018/2019 proposed funding agreement, including a comparison with previous years and percentage increase from previous year.

Detail	2016/2017	2017/2018	2018/2019 (proposed)
Direct opex funding	$2.898.0m	$2.956.0m	$3.003.7m
Direct capex funding
Total direct funding	$2.898.0m	$2.956.0m	$3.003.7m
Contribution from other council budgets (seconded staff)	0.0	0.0	0.00
Total Funding Agreement	$2.898.0m	$2.956.0m	$3.003.7m
percentage increase from previous year	2.4%	2.0%	1.6%

Other budgetary considerations – funding held in council’s budgets

22. In addition to direct funding, the 2018/2019 proposal also includes information on the amount to be held in council’s budgets for the engagement of expertise for development of Mana Whakahono a rohe agreements.

23. This statutory provision was recently introduced into the RMA where either party (council and/or iwi) can activate discussions to acknowledge mana whenua interests relating to the tribal rohe of iwi and hapū and clarify participation arrangements where there are shared interests.

24. Ngai Tai ki Tāmaki is currently undertaking this process with council.

Service Level Agreement – Third Parties

25. Alongside the Funding Agreement, Auckland Council and the IMSB have a Service Level Agreement (SLA) which records shared services agreed between Auckland Council as a supplier and the IMSB as the customer. This allows council, where possible, to support the IMSB through existing contracts and services, thus reducing the overall cost to the ratepayer.

26. There are no actual payments from the IMSB to council for the services covered in the service level agreement. However, to meet accounting standards, the budget for the support services provided by third parties to the IMSB and paid through council (property, insurance and telecommunications) will be included as a separate line item in the 2018/2019 Service Level Agreement.

Funding Variations

27. The IMSB or council may initiate a review of the funding agreement by giving written or electronic notice to the other party stating the terms of the review (Schedule 20, clause 2, LGACA).

28. For the 2017/2018 Funding Agreement, the Governing Body agreed that variations of the funding agreement of no more than $50,000 in the financial year (subject to budget being available to cover variation) could be agreed by the chief executives of Auckland Council and the IMSB. This process removes the need to formally negotiate an amendment to the agreement as envisaged by LGACA for amounts of no more than $50,000.

29. In addition, $130,000 is held in council’s budgets for the engagement of specialist Māori expertise. This amount is unchanged as in the previous two years.

Advice

30. The legislation notes that the board and the council must negotiate the agreement in good faith, failing agreement either party may initiate a review of the funding agreement by giving a written or electronic notice to the other party stating the terms of the review.

31. As noted above, Auckland Council is required to fund the reasonable cost of the IMSB to support its operations, and the legislation anticipates that agreement is reached by negotiation.

32. The Political Working Party has considered the 2018/2019 draft funding agreement and agree that it is consistent with council budget parameters, and appropriate to meet the reasonable costs of the IMSB. The Working Party recommends that Governing Body approve the funding sought by the IMSB.

33. If the Governing Body considers the funding is not reasonable to meet the IMSB’s operations, it could ask the Political Working Party to continue negotiating. This option is not recommended, as the level of funding sought by the IMSB has not increased significantly from 2017/2018. There is nothing to suggest that the funding sought by the IMSB is unreasonable.

Ngā whakaaweawe ā-rohe me ngā tirohanga a te poari ā-rohe /
Local impacts and local board views

34. Local board views have not been sought in relation to this matter as the Governing Body is responsible for negotiating the funding agreement with the IMSB.

35. However, the IMSB work supported by the funding may have outcomes that are relevant to local boards.

Tauākī whakaaweawe Māori / Māori impact statement

36. The funding provided through the annual funding agreement supports the IMSB to give effect to its statutory purpose of promoting cultural, economic, environmental, and social issues of significance for Māori in Tamaki Makaurau, and ensuring that the council acts in accordance with statutory provisions referring to the Treaty of Waitangi.

Ngā ritenga ā-pūtea / Financial implications

37. The costs of funding the IMSB will be met through existing budgets.

Ngā raru tūpono / Risks

38. Political – if the IMSB’s request is seen as excessive the Governing Body may request staff initiate a review of the funding request from the IMSB. Staff see this as low risk because the funding is required by legislation, and this increase is lower than proposed rates increases.

Ngā koringa ā-muri / Next steps

39. Following approval of the funding by the Governing Body, the 2018/2019 funding agreement between Auckland Council and the IMSB will be signed by the Mayor and the council’s chief executive, and the IMSB chair and chief executive.

Ngā tāpirihanga / Attachments

No.	Title	Page
a ⇩	Draft IMSB 2018/2019 Funding Agreement	15

Ngā kaihaina / Signatories

Authors

Josie Meuli - Senior Advisor

Edward Siddle - Principal Advisor

Authorisers

Alastair Cameron - Manager - CCO Governance & External Partnerships

Phil Wilson - Governance Director

Stephen Town - Chief Executive

Governing Body

27 June 2018

Report back to the Local Government Commission on recommendations arising from reorganisation proposals for North Rodney and Waiheke

File No.: CP2018/09888

Te take mō te pūrongo / Purpose of the report

1. To seek retrospective approval of the Auckland Council’s response to the recommendations of the Local Government Commission (LGC) arising from reorganisation proposals for North Rodney and Waiheke.

Whakarāpopototanga matua / Executive summary

2. On 22 March 2018, Auckland Council received recommendations of the Local Government Commission made under section 31(1) of the Local Government Act 2002 following its final determination on the reorganisation proposals for North Rodney and Waiheke (Attachment A).

3. This provision allows the LGC to make non-binding recommendations to local authorities at the conclusion of a reorganisation process. Despite the recommendations being non-binding, the council is required to report back to the LGC on its response to the recommendations, initially by 22 June 2018, and again by 1 November 2018.

4. The attached report Enhancing Local Government for Aucklanders: Response to the recommendations of the Local Government Commission (Attachment B) has been provided to the chair of the LGC by its required deadline of 22 June 2018. It was unable to be approved by the Governing Body prior to it being sent, due to the timing of its June meeting and the need for the Governing Body to prioritise the Long-term Plan 2018-2028 process at its May meetings.

5. There was a presentation to the Local Board Chairs/Governing Body Forum on 28 March and the Local Board Chairs Forum on 14 May 2018 outlining the process for completing the report to the LGC and inviting any questions. This was followed with workshops with the Rodney and Waiheke Local Boards. The draft response was provided to local boards by their Relationship Managers. No issues have been raised. The response was reviewed by the Joint Governance Political Working Party at its meeting on 20 June 2018.

6. There are twelve recommendations to Auckland Council, most of which fall under some key themes of:

· increasing understanding the respective roles of the different governance arms

· ongoing commitment to localism, devolution, flexibility

· active monitoring of council-controlled organisations against governance expectations

· appropriateness of local board funding policy settings

· address legacy issues impacting on service level variability across the region

· tailoring local communications, including raising public awareness of council services and service improvements.

7. There are also some recommendations specific to Waiheke and Rodney Local Boards relating to road sealing budgets, governance over council owned land at Mātiatia (Waiheke Island) and the future location of the Rodney Local Board office.

8. The LGC report also included recommendations to the Minister of Local Government relating to the lack of flexibility for Auckland Council’s electoral arrangements i.e. inability to adjust the number of Governing Body members, or to align ward and local board boundaries.

9. The LGC recommendations are largely consistent with the findings of the Governance Framework Review and many of them have either already been put in place, or are subject to current work programmes. It is proposed that they be adopted, with one exception.

10. The Commission recommends (Recommendation 8) that the current methodology for funding allocation to local boards be reconsidered in light of the strong influence of population numbers on distribution. This recommendation is not supported, as the Local Boards Funding Policy is only applied to a relatively small portion of local board budgets i.e. local discretionary and local capital funding. The details of the rationale are discussed in paragraphs 57-65 (pp 12-14) of the response to the LGC.

11. Auckland Council’s report to the LGC will be made publicly available on the LGC website following consideration by the Commissioners.

Ngā tūtohunga / Recommendation/s

That the Governing Body:

a) approve the response (Attachment B of the agenda report) to the recommendations of the Local Government Commission set out in its report “Enhancing local government for Aucklanders”.

Ngā tāpirihanga / Attachments

No.	Title	Page
a ⇩	Enhancing Local Government for Aucklanders	27
b ⇩	Response to the recommendations of the Local Government Commission	43

Ngā kaihaina / Signatories

Author

Linda Taylor - Programme Manager Governance Framework Review

Authorisers

Phil Wilson - Governance Director

Stephen Town - Chief Executive

Governing Body

27 June 2018

Extension of the Contributions Policy 2015

File No.: CP2018/10182

Te take mō te pūrongo / Purpose of the report

1. To adopt an extension of the Contributions Policy 2015 (Variation A).

Whakarāpopototanga matua / Executive summary

2. The Council consulted on extending the expiry date for the Contributions Policy 2015 (Variation A) from 30 June 2018 until 31 January 2019 or earlier if a new policy is adopted before 31 January 2019.

3. The extension would allow for greater engagement with the community on the formation of the draft Contributions Policy 2018. This would also allow additional time for the council to work through issues raised in previous submissions to ensure these are appropriately reflected in the council’s response and the final policy.

4. Council received 39 submissions on the proposal. All submissions received agreed that extending the Contributions Policy 2015 to allow more time to work on the draft Contributions Policy 2018 was appropriate.

Ngā tūtohunga / Recommendation/s

That the Governing Body:

a) agree to extend the Contributions Policy 2015 until 31 January 2019 or earlier if a new policy is adopted before 31 January 2019.

Horopaki / Context

5. The council consulted on the draft Contributions Policy 2018 in May 2018.

6. Feedback was received from 118 respondents. Key themes in the feedback included:

· support for additional infrastructure investment and recognition of price impacts but concern that price rises would impact on development viability and housing affordability

· concerns that the consultation materials did not provide enough detail and that not enough time was available for respondents to provide feedback and for council to consider that feedback

· support for work to incorporate contributions pricing for greenfields areas.

7. Officers considered that there was value in providing more time for greater engagement with the development community.

8. Council agreed to consult on extending the expiry date for the Contributions Policy 2015 from 30 June 2018 until 31 January 2019 to allow more time to develop the Contributions Policy 2018.

Tātaritanga me ngā tohutohu / Analysis and advice

9. Council consulted on the question:

“Do you think Auckland Council should extend the Contributions Policy 2015 to allow for more time to revise and consult on an updated draft Contributions Policy 2018?”

10. Consultation took place from 6 to 19 June 2018.

11. A total of 39 submissions were received.

12. All feedback received agreed that Council should extend the Contributions Policy 2015. A few respondents provided feedback asking for more detail to be included in a draft Contributions Policy 2018 and a longer time period for consultation.

Ngā whakaaweawe ā-rohe me ngā tirohanga a te poari ā-rohe /
Local impacts and local board views

13. Two local boards provided feedback supporting the extension. The proposed extension of the expiry date for the Contributions Policy 2015 (Variation A) does not impact on local boards.

Tauākī whakaaweawe Māori / Māori impact statement

14. Mana Whenua groups who submitted on the Contributions Policy 2018 were contacted in regards to the proposal to extend the 2015 policy. The only feedback received were requests for Mana Whenua to be engaged in the development of the draft Contributions Policy 2018.

Ngā ritenga ā-pūtea / Financial implications

15. The financial projections in the 10-year Budget assume that the policy will be extended. There are no financial implications from extending the expiry date for the Contributions Policy 2015 (Variation A).

Ngā raru tūpono / Risks

16. There are no risks from extending the expiry date for the Contributions Policy 2015 (Variation A).

Ngā koringa ā-muri / Next steps

17. A draft Contributions Policy 2018 will be developed and reported to Council to consider and approve consultation in the first quarter of the 2018/2019 financial year. A new policy can come into effect on 31 January or earlier.

Ngā tāpirihanga / Attachments

There are no attachments for this report.

Ngā kaihaina / Signatories

Authors

Andrew Duncan - Manager Financial Policy

Felipe Panteli - Senior Policy Advisor

Beth Sullivan - Principal Advisor Policy

Authorisers

Ross Tucker - Acting General Manager, Financial Strategy and Planning

Matthew Walker - Acting Group Chief Financial Officer

Stephen Town - Chief Executive

Governing Body

27 June 2018

Maungauika - transfer of administration

File No.: CP2018/10250

Te take mō te pūrongo / Purpose of the report

1. To seek a decision for Auckland Council to become responsible for the routine management of Maungauika/North Head in the same manner as for other tūpuna maunga administered by the Tūpuna Maunga o Tāmaki Makaurau Authority.

Whakarāpopototanga matua / Executive summary

2. Under Ngā Mana Whenua o Tāmaki Makaurau Collective Redress Act 2014 (the Tāmaki Collective Act) 14 tūpuna maunga (volcanic cones), including Maungauika/North Head (Maungauika), were vested in the Tūpuna Taonga o Tāmaki Makaurau Trust. Unlike other tūpuna maunga, the Department of Conservation (DOC) has continued to administer and manage Maungauika since 2014.

3. Section 38 of the Tāmaki Collective Act sets out a process for the Tūpuna Maunga o Tāmaki Makaurau Authority (Tūpuna Maunga Authority) to become the administering body for Maungauika, if Auckland Council agrees to be responsible for routine management in the same manner as for other tūpuna maunga.

4. To date Auckland Council has supported in principle the transfer of administration of Maungauika to the Tūpuna Maunga Authority, but has been concerned about costs required to remedy deferred maintenance and other asset improvements on the maunga.

5. In 2014 and 2015 discussions took place between council staff and DOC to reach an agreement for the Crown to meet a potential funding gap or otherwise remedy deferred maintenance and other asset improvements on Maungauika. Although an offer was made by DOC agreement was not reached at this time.

6. In April 2018 the General Manager, Parks Sport and Recreation, and the Operations Director for DOC revisited the 2015 offer and negotiated an updated proposal for consideration by Auckland Council.

7. The proposal is that Auckland Council take up routine management of Maungauika on 1 July 2018 (or as close as possible to that date), subject to a one-off financial grant of $409,500 from the Crown to Auckland Council in recognition of deferred asset maintenance costs. In addition, DOC will continue to cover maintenance costs on Maungauika for two years from 1 July 2018 under the direction of the Tūpuna Maunga Authority, at a value of $120,000 per annum of maintenance costs and 1500 hours of staff time. DOC will also be responsible for improvements around the buildings it has a statutory right to occupy.

8. The revised offer is supported by the general manager, parks sport and recreation. The arrangement significantly meets the potential funding gap identified by Council staff.

9. Although the council could decline to take up routine management, and seek to negotiate further with DOC, this is not recommended. DOC has indicated the revised proposal is as good as the department is able to offer. Delaying or declining a transfer of administration poses a potential reputational and relationship risk to Auckland Council with mana whenua.

10. The recommended option is to take up the offer. This would allow the council to recover the costs of works from DOC in a manner that can be directed by the Tūpuna Maunga Authority. Giving effect to the transfer supports the intent of the Tāmaki Collective settlement and enhances the integrated management of the tūpuna maunga across Auckland. It is the strong preference of mana whenua and is supported by the Tūpuna Maunga Authority. Integrated management will also likely be an important aspect of a future application for World Heritage status for the tūpuna maunga.

Ngā tūtohunga / Recommendation/s

That the Governing Body:

a) agree Auckland Council be responsible for the routine management of Maungauika/North Head in the same manner as for other tūpuna maunga administered by the Tūpuna Maunga Authority

b) delegate to the mayor to provide notice in writing to the Minister of Conservation on behalf of Auckland Council to give effect to this resolution.

Horopaki / Context

11. The Tāmaki Collective Act vested 14 tūpuna maunga in the Tūpuna Taonga o Tāmaki Makaurau Trust (the Trust), to hold for the common benefit of Ngā Mana Whenua o Tāmaki Makaurau and the people of Auckland. Among the vested maunga was Maungauika.

12. Through the Tāmaki Collective Act, Auckland Council is responsible for the routine management of 13 tūpuna maunga and must carry out this responsibility under the direction of the Tūpuna Maunga Authority.^{^[1]}

13. Unlike other tūpuna maunga, the Crown through DOC has continued to administer and manage Maungauika since 2014. A map of Maungauika is attached (Attachment A).

14. Under section 38 of the Tāmaki Collective Act, the Governor-General, by Order in Council made on the recommendation of the Minister of Conservation, can make the Tūpuna Maunga Authority the administering body for Maungauika. The Minister of Conservation may recommend making the order if, among other things, Auckland Council agrees to be responsible for the routine management of Maungauika in the same manner as for other tūpuna maunga.

15. In 2015 the Minister of Conservation, Director-General of DOC, 13 mana whenua groups and the Trust entered into a Conservation Relationship Agreement. The agreement is separate from the Tāmaki Collective Act and does not apply to Auckland Council. It nevertheless sets out an intention that, if DOC remains the administrator of Maungauika after five years, the parties will look to broaden the scope of governance issues for Maungauika (the date for this being 31 July 2019). The agreement creates a time-frame on a decision by Auckland Council to take up routine management.

16. Since October 2016, DOC has managed Maungauika in accordance with the Tūpuna Maunga Integrated Management Plan (IMP). The part of the IMP relating to Maungauika was approved by the former Minister of Conservation (Attachment B). DOC also retains all income earned from Maungauika, although this income is modest.

Auckland Council support for administration by Maunga Authority but concern about costs

17. Although Auckland Council has supported in principle the transfer of administration of Maungauika to the Tūpuna Maunga Authority, the council has been concerned about costs required to remedy deferred maintenance and provide asset improvements on the maunga.

18. On 27 October 2011, the Governing Body approved a response to the Minister for Treaty of Waitangi Negotiations on various matters relating to the proposed Tāmaki Collective settlement. This included delaying agreement to transfer Maungauika so cost and funding implications were better understood (GB/2011/202). Provision was subsequently made to allow the Tūpuna Maunga Authority to take up administration of Maungauika at a later date.

19. On 10 September 2013, the Governing Body endorsed a submission to the Māori Affairs Committee on Ngā Mana Whenua o Tāmaki Makaurau Collective Redress Bill. The submission supported the Bill, including “the capacity for Maungauika to be managed by the Maunga Authority if Auckland Council agrees to be responsible for the routine management of Maungauika in the same manner as for other maunga ...” (GB/2013/94).

Discussion between DOC and Auckland Council, 2014-2015

20. In 2014, a visual and structural assessment of assets on Maungauika was commissioned and carried out by council staff. The resulting report largely informed a proposal by staff that DOC either provide a one-off financial grant of $1,100,000 to meet a potential funding gap or otherwise remedy deferred maintenance and other asset improvements (this was later reassessed down to $908,500).

21. On 5 August 2014, the Parks, Recreation and Sport Committee resolved to support the transfer of routine management of Maungauika on the condition remedial work was undertaken or costs otherwise met (PAR/2014/48).

22. DOC disputed the deferred maintenance and other costs identified by the council. They identified assets which would not be part of a transfer, other assets which had or would be addressed through DOC’s maintenance programme, and proposed works which had not been identified as safety issues. DOC also disputed the inclusion of some proposed works which would be outside their national management framework and practice guidelines.

23. On that basis, DOC offered to pay a one-off financial grant of $409,500 to facilitate the transfer of administration, while completing maintenance and repair work as part of their cyclical maintenance programme until transfer of administration.

24. On 6 October 2015, DOC’s offer was reported to council’s Te Tiriti / Treaty of Waitangi Settlement Working Party. The working party suggested council staff undertake further discussions with DOC to seek to increase the Crown’s commitment. DOC later indicated they were unable to improve their offer. Discussions between the council and DOC largely ceased at that time.

Revised DOC offer and management recommendation, 2018

25. On 20 December 2017, the chair of the Planning Committee wrote to the Minister of Conservation suggesting discussions on Maungauika be reinvigorated to enable a transfer of administration to the Tūpuna Maunga Authority (Attachment C).

26. In April 2018, the general Manager, parks sport and recreation, and the operations director for DOC revisited the 2015 offer and negotiated an updated proposal for consideration by Auckland Council.

27. The recommended proposal is that Auckland Council take up routine management of Maungauika on 1 July 2018 (or as close as possible), subject to:

i) the immediate transfer of a one-off financial grant of $409,500 from the Crown to Auckland Council in recognition of deferred asset maintenance costs;

ii) DOC continuing to cover maintenance costs on Maungauika for two years from 1 July 2018 under the direction of the Tūpuna Maunga Authority, at a value of:

· $120,000 per annum of maintenance costs

· 1500 staff hours per annum. After the first financial year, the Tūpuna Maunga Authority has the option of converting these hours into a simple payment.

iii) DOC will be responsible for improvements around the buildings it has a statutory right to occupy (Areas C1 and C2 as identified in Attachment A), until DOC provides notice to vacate. This maintenance is in addition to maintenance under the direction of the Tūpuna Maunga Authority.

28. The revised arrangement is supported by the general manager, parks sport and recreation. The arrangement significantly meets the potential funding gap identified by council staff in 2014, including by DOC’s agreement to continue managing the site under the direction of the Tūpuna Maunga Authority for an additional two years.

Consultation with the Tūpuna Maunga Authority

29. Section 38(2)(c) of the Tāmaki Collective Act requires that, before agreeing to be responsible for the routine management of Maungauika, Auckland Council must consult the Tūpuna Maunga Authority. On 18 May 2018 the general manager parks, sports and recreation wrote to the chair of the Tūpuna Maunga Authority outlining the management agreement agreed in principle with DOC for payment and an additional two years of management by DOC, with further contributions to maintenance costs and staff time. The Tūpuna Maunga Authority supports the proposed approach.

Tātaritanga me ngā tohutohu / Analysis and advice

30. Options available are considered to be:

a) decline the management recommendation and direct staff to negotiate further with the Department of Conservation

b) support the management recommendation at a future date

c) support the management recommendation without changes.

31. Option A is not recommended. It does not meet the intent of the Treaty settlement legislation in a timely manner. It therefore risks undermining the council’s long-standing position that it supports the Tāmaki Collective settlement and agrees in principle to take up routine management of Maungauika. DOC has indicated the revised proposal is as good as the department can offer.

32. Option B is not recommended. It creates more uncertainty and would require agreement from DOC. The closer the transfer date gets to 31 July 2019, the more uncertain the proposed arrangement will likely be. DOC has indicated it is unlikely the one-off financial grant will be available beyond 30 June 2018.

33. Option C is the recommended option. It allows the council to recover from DOC the costs of works in a manner that can be directed by the Tūpuna Maunga Authority at the earliest stages. Based current assessments, the one-off financial grant will cover engineering and heritage assessments, plus remaining deferred maintenance, and should significantly contribute to asset improvements to be managed over a longer period in line with Tūpuna Maunga Authority aspirations.

34. Council staff have reviewed DOC’s operational costs at Maungauika over the last four years, which amounts to approximately $160,000 per annum ($80,000 and 1200 staff hours). Work done in this period has addressed a number of the deferred maintenance issues identified in 2014. The proposal for a further two years of work by DOC, including $120,000 per year of costs plus staff time, means DOC will continue to address deferred maintenance costs.

35. Giving effect to the transfer supports the intent of the Tāmaki Collective settlement and enhances the integrated management of the tūpuna maunga across Auckland. It is the strong preference of mana whenua.

36. Integrated management will likely be an important aspect of a future application for World Heritage status for the tūpuna maunga.

Ngā whakaaweawe ā-rohe me ngā tirohanga a te poari ā-rohe /
Local impacts and local board views

37. On 15 April 2014, the Devonport-Takapuna Local Board passed resolutions supporting the transfer of routine management of Maungauika to Auckland Council, on the condition that the Crown meets the cost of the council remedying the deferred maintenance and other asset maintenance matters identified by council (DT/2014/89). The local board also requested that the community has input into ensuring the built heritage is recognised and retained on Maungauika.

38. On 19 June 2018, the views of the Devonport-Takapuna Local Board were sought on the management proposal for transfer set out here. Local board resolutions will be tabled on 27 June 2018 when the Governing Body considers this paper.

Tauākī whakaaweawe Māori / Māori impact statement

39. The Tāmaki Collective Act provides mechanisms by which mana whenua groups may exercise mana whenua and kaitiakitanga over the tūpuna maunga. A transfer of administration of Maungauika to the Tūpuna Maunga Authority will help give effect to these Treaty settlement outcomes and enhance the integrated management of the maunga. The Tūpuna Maunga Authority and the Tūpuna Taonga o Tāmaki Makaurau Trust supports the proposed arrangement with DOC to facilitate a transfer of routine management to Auckland Council.

Ngā ritenga ā-pūtea / Financial implications

40. On 28 May 2018, the Tūpuna Maunga Authority met to approve the Authority’s Operational Plan 2018/2019 and the Summary of the Operational Plan 2018/2019. These documents include proposed Maungauika operational long-term plan funding of $200,000 per annum for the 2018-2019 to 2021-2022 financial years with small increases to cover inflation. On 28 June 2018, the Governing Body is set to adopt the Long-term Plan 2018-2028.

41. It is anticipated the Crown’s financial grant of $409,500, plus DOC covering the first two years of operational and maintenance work, will provide a total of around $809,500 for engineering and heritage assessments, asset improvements, and further maintenance work to be undertaken in line with Tūpuna Maunga Authority aspirations.

Ngā raru tūpono / Risks

42. There is a potential reputational risk to Auckland Council of not taking up routine management of Maungauika in a timely manner, insofar as the council’s long-standing position that it supports the Tāmaki Collective settlement would be undermined. This may pose a risk to relationships with mana whenua, who support an integrated approach to the management of the tūpuna maunga as provided under the Treaty settlement legislation.

Ngā koringa ā-muri / Next steps

43. If supported, notice will be given to the Minister of Conservation that Auckland Council has agreed to be responsible for the routine management of Maungauika. A delegation to the mayor to provide notice is sought.

44. Under section 38 of the Tāmaki Collective Act, the Minister of Conservation may recommend to the Governor General the making of an Order in Council for Schedule 6 of the Act to come into force and the Tūpuna Maunga Authority to become the administering body for Maungauika.

45. If administration is transferred to the Tūpuna Maunga Authority, Maungauika will continue to be included within the Hauraki Gulf Marine Park and subject to the Hauraki Gulf Marine Park Act 2000.

Ngā tāpirihanga / Attachments

No.	Title	Page
a ⇩	Map of Maungauika	75
b ⇩	Letter Minister of Conservation regarding approval of IMP, 14 October 2016	77
c ⇩	Letter Chair of Planning Committee to Minister of Conservation, 20 November 2017	79

Ngā kaihaina / Signatories

Authors

John Hutton - Manager Treaty Settlements

Mace Ward - General Manager Parks, Sports and Recreation

Authorisers

Phil Wilson - Governance Director

Stephen Town - Chief Executive

Governing Body

27 June 2018

Governing Body

27 June 2018

Chief Executive's Employment Review

File No.: CP2018/10399

Te take mō te pūrongo / Purpose of the report

1. To receive advice from the Appointments, Performance Review and Value for Money Committee (APRVFM) on the outcome of the chief executive’s employment review.

2. The discussion with be held in the confidential agenda.

Whakarāpopototanga matua / Executive summary

3. The chief executive’s contract expires on 31 December 2018 and the Governing Body can either extend Mr Town’s contract by up to a further two years or advertise a vacancy. The Local Government Act 2002 requires the council to undertake a formal employment review by 30 June 2018 before it makes its decision.

4. The Governing Body delegated the employment review process to the APRVFM Committee. The APRVFM Committee has completed the employment review and will present its recommendations to the Governing Body in the confidential agenda of today’s meeting.

5. The council has a contractual obligation to review Mr Town’s remuneration annually. The chief executive’s remuneration was last reviewed in December 2015. The APRVFM Committee will provide advice on the chief executive’s remuneration in the confidential agenda.

Ngā tūtohunga / Recommendation/s

That the Governing Body:

a) note that the Appointments, Performance Review and Value for Money Committee will present its recommendations to the Governing Body on the outcome of the chief executive’s employment review in the confidential agenda of today’s meeting

b) note that subject to the decisions of the Governing Body, in consultation with the chief executive, a public statement will be made as soon as practicable.

Ngā whakaaweawe ā-rohe me ngā tirohanga a te poari ā-rohe /
Local impacts and local board views

6. Local board views were sought to inform the chief executive’s employment review.

Tauākī whakaaweawe Māori / Māori impact statement

7. The chief executive plays a key role in discharging Auckland Council’s Treaty of Waitangi and statutory obligations to Māori. Those obligations are reflected in the chief executive’s current performance objectives which expire on 31 December 2018.

8. The IMSB Chair was consulted during the chief executive employment review.

Ngā ritenga ā-pūtea / Financial implications

9. There are no financial implications associated with the decisions in this paper, other than any changes agreed in the cost of meeting the chief executive’s remuneration.

Ngā raru tūpono / Risks

10. The main risks are timeliness and continuity in senior executive leadership. Mr Town’s contract expires on 31 December 2018 and the Governing Body is encouraged to confirm its decision at this meeting to address any uncertainty, or if required, to commence a recruitment process.

Ngā tāpirihanga / Attachments

There are no attachments for this report.

Ngā kaihaina / Signatories

Author	Patricia Reade - Director People and Performance
Authoriser	Phil Wilson - Governance Director

Governing Body

27 June 2018

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 Acquisition of land for open space - Glen Eden

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)(h) - The withholding of the information is necessary to enable the local authority to carry out, without prejudice or disadvantage, commercial activities.

s7(2)(i) - The withholding of the information is necessary to enable the local authority to carry on, without prejudice or disadvantage, negotiations (including commercial and industrial negotiations).

In particular, the report identifies land that council seeks to acquire for open space purposes.

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 Chief Executive's Employment Review

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 Governing Body will discuss the performance of the Chief Executive, which may include past performance and future expectations, terms and conditions of employment, remuneration and future performance objectives.

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.

[1] Maungauika/North Head and Rarotonga/Mt Smart are Trust-owned lands managed by DoC and Regional Facilities respectively. Mangere Mountain and Maungakiekie/One Tree Hill northern land are Crown-owned lands, but the routine management was transferred to Auckland Council under the direction of Tūpuna Maunga Authority.

Author	Sarndra O'Toole - Team Leader Governance Advisors
Authoriser	Stephen Town - Chief Executive