Agenda of Governing Body - 26 November 2019

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:

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

(i) approval of a draft bylaw prior to consultation

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

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

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

(m) overview of and decisions relating to any CCO review including the implementation of any resulting changes to CCOs

(n) oversight of work programmes of all committees of the governing body.

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 Friday, 1 November 2019 and the extraordinary minutes of its meeting, held on Tuesday, 12 November 2019, 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.”

Governing Body

26 November 2019

Council Controlled Organisations Review: Approval of Terms of Reference

File No.: CP2019/18974

Te take mō te pūrongo

Purpose of the report

1. To approve the draft terms of reference for for an independently led review of Auckland Council’s substantive council-controlled organisations.

Whakarāpopototanga matua

Executive summary

2. A review of council’s substantive council-controlled organisations (CCOs) is proposed to identify what is working well with our CCO model, what is not working well and how this could be improved. Councillors provided input into the scope of the review at a workshop on 4 November 2019 and by email.

3. Feedback on the scope of review identified three key areas of focus:

· the effectiveness of the CCO model, roles and responsibilities

· the accountability mechanisms between CCOs and the council

· the culture of CCOs.

4. Draft terms of reference (TOR) were developed that set out the context for the review, the objectives, scope of review, governance framework, community and stakeholder engagement requirements, outputs and timeframes.

5. The draft TOR were distributed to the Governing Body, the CCOs and the Independent Māori Statutory Board, asking for feedback. At the time of writing, not all feedback has been received and a verbal update will be provided to this committee.

6. It is proposed that the review will be led by an independent panel. The panel appointment will be the subject of a separate report in December 2019. To assist in the appointment process for the panel, several criteria have been identified that the panel members would ideally possess. Approval of these criteria is sought.

7. The review provides for community and stakeholder engagement. The exact details of this process will be finalised with the independent panel.

8. The timeframe for the completing the review (by 30 July 2020) aligns with the decision-making process for the 10-year budget process, and formal consultation, if required, on any proposals to alter the functions or services delivery by a CCO. This timeframe is ambitious and relies on panel availability and resourcing.

9. The proposed review is wide ranging and completing the review within the specified timeframes will be challenging. It may be, that dependent on panel availability and resourcing, the review will need to be phased.

Ngā tūtohunga

Recommendation/s

That the Governing Body:

a) agree the terms of reference for the Council Controlled Organisation review

b) note that the timing and phasing of the Council Controlled Organisation review maybe subject to budget and resource allocation and availability and capacity of panel members

c) agree the criteria for selection of the independent review panel members.

Horopaki

Context

Why the time is right for an externally led CCO review

10. Auckland Council’s CCOs account for 55 percent of the council’s operational budget and have been in operation since the establishment of the Auckland Council. The substantive CCOs were established on amalgamation by the government and Auckland Transition Agency, under the Local Government (Auckland Council) Act 2009 or via Order in Council, to deliver a range of activities previously delivered by the legacy councils and their associated organisations.

11. During the 2019 Local Body elections, Mayor Phil Goff signaled the need for an independent review of CCOs.

12. The context within which the CCOs operate has changed in the last ten years. Auckland is facing considerable growth and social change. Auckland’s diverse population brings many differences in values and lifestyles, demands for goods and services and expectations of civic engagement and democracy. Climate change and continued competing pressures for resources all impact on council’s decisions and priorities for investment and service delivery. In order to meet these challenges, the council must continue to explore new ways of working.

13. In addition, the government has introduced additional national direction tools, such as the Government Policy Statements on Transport and Urban development, and new agencies like the Kainga Ora.

14. The government has also recently made changes to the Local Government Act 2002 to improve CCO accountability mechanisms.

Previous reviews of the CCO model and accountability framework have resulted in changes to the model

15. A number of reviews and decisions have been made in relation to the CCO model. These are summarised below and in Figure 1.

Figure 1: Timeline of CCO reviews

16. CCO internally led review (2014-2015) - focused on ensuring that CCO governance structures were aligned with council’s strategies and provided an efficient and effective model of delivery. The review concluded that:

· the services being delivered through the CCOs were suited to the CCO model of delivery

· when compared with other options, the arrangements of governance and council funding being a council responsibility, and delivery being an Auckland Council CCO responsibility, were a “cost-effective arrangement for meeting the needs of communities within the Auckland region for good quality local infrastructure, local public services and performance of regulatory functions” [GB/2014/141].

17. Panuku Development Auckland Limited (Panuku) established (2015) - the CCO review proposed a new redevelopment entity to drive the delivery of the development and urban improvement goals of the Auckland Plan. This was consulted on as part of the draft Long-term Plan and resulted in Panuku being established from the merger of Waterfront Auckland and Auckland Council Property Limited.

18. Auckland Council Investments Limited (ACIL) disestablished (2018) - with the investments in Auckland International Airport Limited and Ports of Auckland Limited transferred to the council.

19. CCO Accountability review (2017-18) – resulted in a number of improvements, including:

· improvements to CCO governance structures and engagement with council (e.g. board performance review processes, introduction of council / board workshops)

· amendments to council policies and direction setting to provide create clarity and guidance (e.g. the CCO accountability policy, more detailed financial reporting in the long-term plan, the board appointment and remuneration policy, review of council’s strategic direction and plans)

· new performance reporting templates.

20. Statement of Intent (SOI) Review (2018) - the Finance and Performance Committee approved the terms of reference for a review of the Statement of Intent process in February 2019. Due to the local body elections this review has not been reported back to council. The review has concluded that council is reaching the upper limits of what further major improvements can be made to SOI content and process within the current legislative framework. The review has identified an opportunity to streamline the current SOI process (within existing legislative parameters) and to improve engagement between CCO boards and councillors, as well as other minor opportunities to refine process and content. These findings will be incorporated into the proposed CCO review.

Tātaritanga me ngā tohutohu

Analysis and advice

Development of terms of reference (TOR)

21. A draft TOR has been developed to provide guidance to an independent review panel (refer Attachment A).

22. The draft TOR sets out the objectives, scope and approach for the proposed review. This has been based on the common themes identified from feedback received from councillors in a workshop, individual conversations and written responses.

23. The feedback has been grouped into three areas. The task is to determine what are the current perceived and real issues, and what can be done to address these issues. The proposed areas the review will cover are:

· the CCO model, roles and responsibilities

· CCO accountability to council as shareholder and to the community

· culture of CCOs responsiveness

24. The review, as proposed, is very wide ranging and completing the review within the timeframes specified will be challenging for both the panel and council staff supporting the panel. It maybe that elements of the review are prioritised or phased, depending on budget and panel resourcing requirements. Any decisions in this regard will be decided by the Governing Body.

Engaging with the community and stakeholders

25. The proposed TOR requires community engagement early on in the review to identify their concerns and ideas for improvement. Council staff will assist the independent panel to undertake the work and engage with the community.

26. Workshops will be scheduled for local boards to provide input into the review.

27. The panel will consult with CCO boards and senior executives from the CCOs to ascertain their views on the issues and on any recommendations or proposals for improvement.

Timeframe and outputs

28. The intention is to complete the review and be ready to implement agreed outcomes, if required, by 30 July 2020. This timing aligns the CCO review with the 10-year Budget process (refer Figure 2).

29. The reviewers will provide a draft report to the Governing Body on the key issues and community/stakeholder feedback in April 2020 and a final report with recommendations by July 2020.

Figure 2: Proposed timeline for CCO review

Criteria for independent review panel member appointments

30. Council wishes to appoint an independent panel of experts to lead the review. Recommendations for the panel will be the subject of a separate report in December 2019. In identifying candidates for the panel, staff recommend that panel members will ideally possess some or all of the following:

· governance, senior executive or similar experience (e.g. corporate, elected or community representative)

· ability to think strategically and critically and take a broad perspective on issues

· sound judgement, evaluation and decision-making skills

· stakeholder engagement and management expertise

· knowledge of the local government and/or public sector and the interests of the publicly accountable shareholder

· commercial acumen

· common sense, integrity and a strong sense of ethics

· knowledge of community networks and experience in community engagement

· knowledge of the diverse communities of Auckland

· experience in managing complex multi-stakeholder projects within a short timeframe, which may include sensitive and/or confidential information

· knowledge of the issues of significance for Māori in Tāmaki Makaurau and council’s Te Tiriti o Waitangi obligations

31. Other factors relevant to panel selection:

· availability and capacity to undertake the review within the specified timeframes

· any identified actual or potential conflicts of interest

· balance of representation on the panel relative to council’s diversity and inclusion goals.

Tauākī whakaaweawe āhuarangi

Climate impact statement

32. Recommendations arising from the review may have impacts for how the CCOs are aligning with current council policy and commitments relating to climate change.

33. The review will have no direct impact on emissions.

Ngā whakaaweawe me ngā tirohanga a te rōpū Kaunihera

Council group impacts and views

34. The draft TOR were circulated to the chair and chief executives of the CCO Boards. Their feedback (if any) will be provided verbally at this meeting.

35. If approved, council staff will engage with the CCO boards and chief executives to develop the work programme and complete the review.

Ngā whakaaweawe ā-rohe me ngā tirohanga a te poari ā-rohe

Local impacts and local board views

36. The approved terms of reference will be circulated to all local boards.

37. CCO activities are regional in nature and impact at varying degrees locally. A key requirement of the review will be for the independent panel to seek feedback from local boards on the issues they experience with CCOs and any options for improvement they may identify. Discussions with local boards are expected to take place in February 2020.

Tauākī whakaaweawe Māori

Māori impact statement

38. CCOs, as delivery agents of council, have the potential to have a significant impact on positive outcomes for Māori. The review of CCOs is therefore an opportunity to ensure that council’s commitments and obligations to Māori are reflected in the arrangements between council and its CCOs.

39. The Independent Māori Statutory Board have contributed to the development of the TOR and will continue to be included in the review process moving forward, as appropriate.

40. Consultation with Māori will form part of the public consultation.

Ngā ritenga ā-pūtea

Financial implications

41. The CCO review is currently unbudgeted. Without confirmation of the panel members and the scope of the review, the financial implications of the review have been estimated at approximately $500,000-$800,000.

42. This does not include any costs that may be associated with implementation outcomes of the review.

Ngā raru tūpono me ngā whakamaurutanga

Risks and mitigations

43. The review, as proposed, is very wide ranging and completing the review within the timeframes specified will be challenging. It maybe that elements of the review are prioritised or phased, depending on budget and panel resourcing requirements.

44. Staff resource will be required to support the panel and review process. This may result in the reprioritisation of existing work programmes. The impact of this is difficult to assess at this time, as the work programme of the review is yet to be fully scoped.

45. A review of this nature is also potentially unsettling for staff and creating commercial risk for the CCOs. In order to minimise these impacts it is intended that the review is completed quickly.

Ngā koringa ā-muri

Next steps

46. If approved, work will commence on developing the work programme and ensuring the public engagement phase is established. This programme will be finalised with independent panel.

47. A report seeking approval of independent panel members to undertake the review will come to the Governing Body in December 2019.

48. The final timeframe for delivering the review will depend on:

· the appointments and availability of the independent panel

· budget.

Ngā tāpirihanga

Attachments

No.	Title	Page
a ⇩	Draft Terms of Reference	17

Ngā kaihaina

Signatories

Author

Claire Gomas - Principal Advisor

Authorisers

Alastair Cameron - Manager - CCO Governance & External Partnerships

Phil Wilson - Governance Director

Stephen Town - Chief Executive

Governing Body

26 November 2019

Feedback to Local Government New Zealand on Localism

File No.: CP2019/18881

Te take mō te pūrongo

Purpose of the report

1. To approve feedback to Local Government New Zealand (LGNZ) on its discussion document “Reinvigorating local democracy: the case for localising power and decision-making to councils and communities”.

Whakarāpopototanga matua

Executive summary

2. Local Government New Zealand has circulated a discussion paper “Reinvigorating local democracy: The case for localising power and decision-making to councils and communities” and has asked for feedback by 15 December 2019. The document is appended as Attachment A.

3. With final meetings being held in September prior to local government elections in October 2019, it has not been practicable to report the discussion document formally to local boards and to the governing body to establish an Auckland Council position. This report recommends providing feedback based on what is already on the record in relation to Auckland Council’s interaction with central government, focusing on collaboration and co-ordination.

4. The comments made in the feedback provide a background context for any future discussion about localism and devolution of functions from central government and may be useful for Auckland Council representatives on LGNZ when localism is discussed at LGNZ.

5. The draft feedback is appended as Attachment B.

Ngā tūtohunga

Recommendation/s

That the Governing Body:

a) approve the feedback in Attachment B of the agenda report as Auckland Council’s response to “Reinvigorating local democracy: The case for localising power and decision-making to councils and communities”.

Horopaki

Context

6. The discussion paper:

(i) states that New Zealand’s governmental arrangements are highly centralised compared to overseas countries.

(ii) argues that more decentralisation benefits economic performance, democratic engagement and is better at addressing regional inequalities.

(iii) suggests that potential services for devolution to local government include:

· vocational training

· welfare services for people in need

· mental health services

· social housing

· public health

· integration and coordination of social services

· services to enable older citizens to “age in place”

· urban development

· employment

· services for young people not in employment or training.

(iv) alternatively, suggests that services might be devolved through negotiation and that local discretion might be increased by removing constraints imposed through legislation.

(v) recognises that funding is an issue and discusses ‘buoyant taxes’ (such as GST) and local taxes.

(vi) notes the desire of central government to take a well-being approach and states that local government can inform this approach because it knows about its own communities and their needs.

(vii) notes that localism is more than just shifting some services from central government to local government – it is also about more citizen participation.

(viii) opposes cost-shifting, where local government is asked to take on more but without any additional funding.

7. The discussion about localism is supported by “The New Zealand Initiative”, which has also published papers on localism and in 2017 organised a delegation of more than 30 senior leaders of large New Zealand organisations to Switzerland to study direct democracy. The New Zealand Initiative is a think tank representing business sector interests^{^[1]}. It was formed in 2012 with the merger of the New Zealand Business Roundtable and the New Zealand Institute.

Tātaritanga me ngā tohutohu

Analysis and advice

8. Auckland Council has been in existence for less than 10 years and is New Zealand’s largest local authority. It is likely that its experience of dealing with central government will be different to that of other councils.

9. The feedback contained in Attachment B draws from the expectations of the Royal Commission on Auckland Governance, the government’s “Making Auckland Greater” and the experience of the council since its establishment in 2010.

10. The draft feedback specifically refers to:

(i) the Royal Commission’s proposals for dealing with social issues in partnership with central government

(ii) the Auckland Plan as the strategic plan for Auckland which needs the participation of central government

(iii) the role of the Mayor of Auckland in representing one-third of the country’s population to central government

(iv) the co-ordination of central government policy through an Auckland Policy Office

(v) alignment with the well-being approach of central government

(vi) Auckland central-local government forum

(vii) the Auckland Transport Alignment Project

(viii) the Southern Initiative

(ix) the Western Initiative

(x) housing and urban growth

(xi) the Independent Māori Statutory Board.

Tauākī whakaaweawe āhuarangi

Climate impact statement

11. The relationship between local and central government is crucial to addressing climate change issues. The responsibility is neither that of local nor central government alone.

Ngā whakaaweawe me ngā tirohanga a te rōpū Kaunihera

Council group impacts and views

12. The localism discussion is at an early stage. Future devolution of functions may or may not have impacts on the council group.

Ngā whakaaweawe ā-rohe me ngā tirohanga a te poari ā-rohe

Local impacts and local board views

13. Because of elections it has not been possible to formally seek local board views on localism. Future participation may occur through meetings with LGNZ and through the Auckland Council representatives on LGNZ.

Tauākī whakaaweawe Māori

Māori impact statement

14. The feedback notes that the Independent Māori Statutory Board has separate dealings with government.

Ngā ritenga ā-pūtea

Financial implications

15. Financial implications are key to any future discussion about devolution. The discussion document notes the funding issues around additional functions being devolved to local government.

Ngā raru tūpono me ngā whakamaurutanga

Risks and mitigations

16. The feedback that is proposed does not create any risk for the council.

Ngā koringa ā-muri

Next steps

17. Following approval by the Governing Body, the feedback will be forwarded to LGNZ and discussed by its national council. LGNZ will ultimately raise the localism issue with political parties next year. There may be further opportunities for input by the council, either formally or through its LGNZ representatives.

Ngā tāpirihanga

Attachments

No.	Title	Page
a ⇩	"Reinvigorating local democracy: the case for localising power and decision-making to councils and communities"	25
b ⇩	Feedback on "Reinvigorating local democracy: the case for localising power and decision-making to councils and communities"	65

Ngā kaihaina

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

26 November 2019

Allocation of the Governing Body Remuneration Pool

File No.: CP2019/19284

Te take mō te pūrongo

Purpose of the report

1. To agree recommendations for submission to the Remuneration Authority regarding the allocation of the remuneration pool for the Governing Body.

Whakarāpopototanga matua

Executive summary

2. The Remuneration Authority (the Authority) sets the remuneration for elected positions in individual local authorities, in accordance with the Remuneration Authority Act 1977 and clauses 6 and 7A(1) and (5) of Schedule 7 of the Local Government Act 2002.

3. In 2018 the Authority undertook a comprehensive review of its approach to determine the remuneration and allowances for local government elected members. The Authority considered how a local government pay scale could fairly compare with other roles. It concluded that the only similar occupation is a member of Parliament, and now uses the parliamentary salary scale as a comparator.

4. The pay scale considers three factors – the size of the governance role of each council, the average time required by a councillor on a council of a particular size and a general comparison with parliamentary salaries.

5. As a result of the 2018 review, the Authority created a ‘governance remuneration pool’ (the pool) for the Auckland Council Governing Body to allocate, following the 2019 local government elections, between the different roles and responsibilities taken up by councillors. The pool provides the total amount that can be paid in remuneration to councillors. The pool does not include remuneration for the mayor and local boards members, which is set directly by the Remuneration Authority.

6. Auckland Council is required to make recommendations to the Authority on how the pool should be allocated between the councillors. The recommendations must include a rate for base councillor remuneration and rates for positions of additional responsibility that the governing body wishes to recognise. The Authority will then consider the council’s recommendations before determining the remuneration payable to members.

Ngā tūtohunga

Recommendation/s

That the Governing Body:

a) approve the proposed allocation of the Auckland Council governance remuneration pool as per the schedule in Attachment A of the agenda report:

i) deputy mayor - $165,582

ii) chair of the committee of the whole - $138,912

iii) chair of the Regulatory Committee - $138,912

iv) deputy chair of a committee of the whole - $125,483

v) chair of other committee - $123,245

vi) council-controlled organisation liaison councillor - $123,245

vii) deputy chair of other committee - $117,650

viii) portfolio lead - $113,174

b) note that staff will forward this allocation to the Remuneration Authority for approval

c) note that:

i) Auckland Council will need to wait until the Remuneration Authority’s amending determination is gazetted before it can pay the new base councillor rate and the new remuneration rates for positions of responsibility

ii) the new base councillor rate will take effect from 22 October (the day after the date on which the official results for the council were declared by public notice)

iii) the remuneration rates for positions of responsibility will take effect from the day after the Governing Body has made these resolutions

Horopaki

Context

7. The Remuneration Authority is the independent body set up by Parliament to handle the remuneration of key office holders such as Judges, members of Parliament, local government representatives, and some individual office holders and board members of independent statutory bodies.

8. Following a comprehensive review of local government sector remuneration in 2018, the Authority created three new size indices – one each for territorial authorities, regional authorities and unitary authorities – and established a new local government pay scale. The size indices are based on population, total operating expenditure, total assets and the socio-economic deprivation index. Because of its size, Auckland Council is considered an outlier and does not fit within the size index, so each year the Authority will make an informed judgement on the size of the pool.

9. After constructing new size indices, the Authority then considered a local government pay scale that maintains fair relativity with remuneration received elsewhere. After exploring various occupational groups that might have some relativity with local government elected members, the Authority concluded that the only similar occupation was that of a member of Parliament. The Authority will therefore be using the parliamentary salary scale as a comparator, but based on the position of each council on the size index and the pro rata time required for an average local government member to undertake the role on a council of any particular size.

10. The pay scale takes into account three factors - the size of the governance role of each council, the average time required by a councillor on a council of a particular size, and a general comparison with parliamentary salaries.

11. As a result of the 2018 review, a governance remuneration pool was established reflecting the size of the actual total governance roles of councils rather than the number of councillors. The pool is the total amount that must be paid in remuneration to councillors. The council can decide how it wants to allocate its pool according to its priorities and circumstances, but must use the totality of the pool.

12. This new approach requires Auckland Council to make recommendations to the Authority on how the pool should be allocated. The recommendations must include a rate for base councillor remuneration and remuneration for all positions of additional responsibility.

13. Roles to which additional remuneration can be allocated may include internal council roles such as the deputy mayor, committee chairs or portfolio holders, as well as other roles representing the council on outside organisations or groups. The pool does not apply to the remuneration of the mayor, which has been set by the Authority at $296,000.

Tātaritanga me ngā tohutohu

Analysis and advice

Allocation of the governance remuneration pool

14. There are four requirements concerning the allocation of the pool:

· the whole pool must be used but cannot be exceeded

· Auckland Council must decide a base remuneration for councillors who have no additional responsibilities

· for any roles which attract additional remuneration above the base rate, the council must have a formal vote which includes the following:

o a title and short description of each role (i.e. what are the requirements for the councillor who undertakes it)

o the proposed annual dollar value of remuneration attached to the role

· following the Governing Body’s formal decision, Auckland Council will forward the proposal for additional remuneration to the Authority for consideration and inclusion in the determination.

15. The pool allocated to Auckland Council for the period following the 2019 local government elections to 30 June 2020 is $2,556,478. The minimum remuneration allocated to a councillor is set at $106,306.

16. A comparison of Part 1 and Part 2 of the 2019/2020 Determination is set out in Table 1 below:

Table 1: comparison between terms

2019/20 Determination Part 1 (July-Oct)	2019/20 Determination Part 2 (This term)
Mayor - $285,041	Mayor - $296,000
Deputy mayor - $160,606	Deputy mayor – not set
Chair of committee of the whole - $132,579	Chair of committee of the whole – not set
Councillor - $111,901	Councillor - $106,306 (minimum)
Annualised Remuneration Authority provision - $2,461,822	Governance Pool - $2,556,478

17. Staff propose that:

a) the pool is allocated to maintain last term’s base remuneration rate of $111,901 for councillors

b) the deputy mayor receives remuneration of $165,582 per annum, an increase of 3%, which is commensurate with the increase of deputy chairs of local boards

c) additional remuneration is graduated to reflect the varying level of additional responsibilities and workload involved in particular roles

d) while acknowledging that many councillors will have several positions of responsibility, for simplicity purposes councillors will only be remunerated for the highest position of responsibility.

18. The minimum rate payable to all councillors and the rate payable to the deputy mayor leave a remaining balance of $264,935 for allocation.

Allocation of remaining funds

19. To distribute the remaining funds in the pool, staff analysed councillor workload and time requirements for roles of additional responsibility from last term. This analysis resulted in the calculation that a chair of a ‘committee of the whole’ has an additional workload of up to 30 per cent compared with a councillor with no additional responsibilities. This role requires strong leadership, the ability to build and maintain relationships, timely decision-making and chairing meetings in accordance with legislation and standing orders.

20. Based upon this analysis, a ratio of 1.24 (with 1 being the workload of a councillor with no additional responsibilities) was applied to the role of chair of a committee of the whole. Staff also considered that the role of chair of the Regulatory Committee should be weighted as 1.24, as this role demands a similar level of expertise and time.

21. Once the ratio of 1.24 for a chair of a committee of the whole and the Regulatory Committee was established, staff used it as a benchmark to allocate the remaining funds for additional roles of responsibility. These are ranked in order and set out in Table 2 below, with the allocated ratio reflecting assessed workload and level of responsibility.

Table 2

Role title	Role description	Base remuneration	Ratio*	Total
Deputy mayor	The deputy mayor acts in support of the Mayor in carrying out his statutory and leadership role.	$160,606	3%	$165,582
Chair of a committee of the whole and chair of Regulatory Committee	Provide the committee with leadership, build and maintain relationships, ensure effective and timely decision-making facilitating meetings in accordance with standing orders.	$111,901	1.24	$138,912
Deputy chair of a committee of the whole	Provide support to the committee chair, assuming the role of chair in their absence.	$111,901	1.12	$125,483
Chair of other committee and council-controlled organisation liaison councillor	Provide the committee with leadership, build and maintain relationships, ensure effective and timely decision-making facilitating meetings in accordance with standing orders.	$111,901	1.10	$123,245
Deputy chair of other committee	Provide support to the committee chair, assuming the role of chair in their absence	$111,901	1.05	$117,650
Portfolio lead	Lead on specific portfolio to offer ongoing support and feedback on issues.	$111,901	1.01	$113,174
Total allocation:		$ 2,556,478

*Some of these ratios have been adjusted to more than two decimals to ensure the totality of the pool is allocated.

Tauākī whakaaweawe āhuarangi

Climate impact statement

22. This decision is unlikely to result in any identifiable changes to greenhouse gas emissions. The effects of climate change will not impact the decision’s implementation.

Ngā whakaaweawe me ngā tirohanga a te rōpū Kaunihera

Council group impacts and views

23. This decision does not impact upon the wider council group.

Ngā whakaaweawe ā-rohe me ngā tirohanga a te poari ā-rohe

Local impacts and local board views

24. This proposal does not affect local board elected members. The Authority has set local board elected member remuneration rates in the 2019/2020 Determination. The Authority has developed a separate size index for Auckland local boards that takes into account their singular characteristics and accountabilities, including their representational responsibilities for large populations.

Tauākī whakaaweawe Māori

Māori impact statement

25. The proposals to the Remuneration Authority relate to all councillors and do not impact Māori differently to others.

Ngā ritenga ā-pūtea

Financial implications

26. The whole pool set by the Remuneration Authority must be allocated. The Council cannot exceed the allocated pool.

Ngā raru tūpono me ngā whakamaurutanga

Risks and mitigations

27. If councillors wish to change the proposal after submission to the Authority, there is a window of three months following the election to do so. The proposed changes must be submitted to the Authority for incorporation into a determination that will be backdated to the date the council made its formal decision on roles and appointments.

Ngā koringa ā-muri

Next steps

28. Once the proposal is approved, staff will submit it to the Remuneration Authority.

Ngā tāpirihanga

Attachments

No.	Title	Page
a ⇩	Proposed allocation of the governance remuneration pool to submit to the Remuneration Authority	79

Ngā kaihaina

Signatories

Author

Kieran O'Callaghan - Privacy Programme Manager

Authorisers

Marguerite Delbet - General Manager Democracy Services

Phil Wilson - Governance Director

Stephen Town - Chief Executive

Governing Body

26 November 2019

Terms of Reference - Working Parties

File No.: CP2019/19358

Te take mō te pūrongo

Purpose of the report

1. To insert the Joint Governance Working Party and Te Tiriti o Waitangi / Treaty of Waitangi Settlement Working Party to the Governing Body’s Terms of Reference for Committees and confirm their membership.

Whakarāpopototanga matua

Executive summary

2. At its meeting on 12 November 2019 the Governing Body adopted the Terms of Reference for its committees, noting that the details for the Joint Governance Working Party and Te Tiriti o Waitangi / Treaty of Waitangi Settlement Working Party would be added at a later date.

3. The proposed Terms of Reference for these working parties are to be inserted into the Governing Body Terms of Reference and are included in Attachment A to this agenda report.

4. Proposed membership of both working parties are outlined Attachment A to this agenda report. Two positions on the Joint Governance Working Party and two positions on Te Tiriti o Waitangi / Treaty of Waitangi Settlement Working Party are still available.

5. Nominations for the four positions (and confirmation of proposed membership), plus the positions of chair and deputy chair of Te Tiriti o Waitangi / Treaty of Waitangi Settlement Working Party will be called for at the meeting.

Ngā tūtohunga

Recommendation/s

That the Governing Body:

a) amend its Terms of Reference for committees by adding the terms of reference for the Joint Governance Working Party and Te Tiriti o Waitangi / Treaty of Waitangi Settlement Working Party as contained in Attachment A of the agenda report.

b) confirm membership of the listed members of the working parties as contained in Attachment A of the agenda report.

c) appoint two additional members to the Joint Governance Working Party.

d) appoint two additional members to the Te Tiriti o Waitangi / Treaty of Waitangi Settlement Working Party.

e) appoint a chair and deputy chair from the membership of the Te Tiriti o Waitangi / Treaty of Waitangi Settlement Working Party.

Ngā tāpirihanga

Attachments

No.	Title	Page
a ⇩	Terms of Reference - Working Parties	85

Ngā kaihaina

Signatories

Authors

Warwick McNaughton - Principal Advisor - Democracy Services

Steve Van Kampen - Governance Support Manager

Authorisers

Marguerite Delbet - General Manager Democracy Services

Phil Wilson - Governance Director

Stephen Town - Chief Executive

Governing Body

26 November 2019

Governing Body Meeting Schedule for January 2020 to Election 2022

File No.: CP2019/04895

Te take mō te pūrongo

Purpose of the report

1. To adopt a schedule of meeting dates and times for the governing body and its committees from January 2020 until the 2022 local body election.

Whakarāpopototanga matua

Executive summary

2. The Governing Body is required to adopt a meeting schedule and give advance notice to members and to the public of when it will meet.

3. The Governing Body adopted a meeting schedule for November and December 2019 at its meeting of 12 November 2019, and ordinary meetings of the governing body and its committees were able to commence from 22 November 2019.

4. A schedule of meetings has now been created for the period from January 2020 through to the 2022 election in October 2022. Taking into account feedback, meetings and workshops will be scheduled between 10.00am and 5.00pm. The schedule is appended as Attachment A.

5. This report outlines the approach used to create the governing body meeting schedule.

Ngā tūtohunga

Recommendation/s

That the Governing Body:

a) agree that meetings and workshops will be scheduled between 10.00am and 5.00pm

b) adopt the meeting schedule for January 2020 through to the local body election in October 2022, appended as Attachment A of the agenda report

c) authorise the General Manager Democracy Services to amend the schedule if required, in consultation with the chair of the relevant committee, and subject to the Mayor’s or Deputy Mayor’s approval if a formal meeting or workshop has to be held on a Monday or Friday

d) note that the meeting schedule can be amended if the Governing Body agrees to committee scheduling changes between January 2020 and the 2022 local body election in October 2022

Horopaki

Context

6. The requirements to give notice of meetings to members are contained in the Local Government Act 2002. Notice must not be less than 14 days prior to the meeting, or if a schedule is adopted, not less than 14 days prior to the first meeting on the schedule. Where this notice cannot be given, meetings are called under the provisions for extraordinary meetings.

7. The requirements around giving notice of a meeting to the public are contained in the Local Government Official Information and Meetings Act 1987 (LGOIMA). A schedule of meetings to be held in a month may be notified not more than 14 days and not less than five days before the end of the prior month. Alternatively, a meeting falling on or after the 21st of a month may be notified not more than 10 working days and not less than five working days prior to the meeting.

8. At its meeting of 12 November 2019, the Governing Body adopted a meeting schedule for the remainder of November and for December 2019 and noted that a three-year schedule would be presented to its meeting on 26 November 2019.

Tātaritanga me ngā tohutohu

Analysis and advice

9. Following comments received at the Governing Body meeting of 5 November 2019, an opportunity was provided for councillors to put forward their views on the meeting schedule.

10. A number of councillors replied with a range of views on how the meeting schedule should be structured.

Recess Weeks

11. There were varying requests around recess weeks.

12. Recess weeks are difficult during April/May and October because of the Annual Budget and 10-year Budget (Long-term Plan) consultation. July is the natural hiatus during the year.

13. There is often a long weekend associated with Waitangi Day and long weekends for Queen’s Birthday weekend (June) and Labour weekend (October).

14. Easter is a four-day weekend (usually in April). At the request of some councillors the week after Easter Monday has also been kept free of meetings, creating a recess at that time.

15. It should be noted that Council Controlled Organisation (CCO) board meetings will continue during any council recess weeks.

16. Four options have been considered to establish recesses:

17. Option One - as per past schedules:

Meeting Recess	Length of Recess (weeks)
Christmas (December to February)	6
April (usually around Easter)	1
July	1
October	1
Total	9 weeks

18. Option Two accommodates different requests for a recess at mid-year only:

Meeting Recess	Length of Recess (weeks)
Christmas (December to February)	6
July (timing to be agreed)	3
Total	9 weeks

19. Some councillors requested a further two-week recess with Option Two. However, the month of May needs to be avoided for recess due to Annual Budget considerations, and a two-week recess in October is impractical due to the 10-year Budget (Long-term Plan) activities occurring at that time. Furthermore, the total recess time would then be 11 weeks, which could compromise the delivery of the governing body’s programme of work.

20. Option Three schedules an additional recess week in October (noting the constraints of the Long-term Plan at this time), and earlier return from the Christmas break:

Meeting Recess	Length of Recess (weeks)
Christmas (December to late January)	5
Recess incorporating Easter	1
July (during school holidays)	2
October (Labour Weekend)	1
Total	9 weeks

21. Option Four excludes a recess week in October and maintains the six-week Christmas break:

Meeting Recess	Length of Recess (weeks)
Christmas (December to late January)	6
Recess incorporating Easter	1
July (during school holidays)	2
Total	9 weeks

22. Given the preference for a longer recess in July and over Christmas, staff consider that Option Four is the best fit and the one that can most easily accommodate the work constraints related to the annual and long-term plans. The schedule has therefore been developed using this option.

Meeting Schedule

23. To ensure the most workable meeting schedule given the number and frequency of meetings required, the following principles have been applied across the term:

i) formal business of the Governing Body and its committee has been confined to Tuesdays, Wednesdays and Thursdays each week. Some meetings will need to be scheduled on Mondays but these will be kept to a minimum. Any other meetings or workshops proposed for Mondays will need approval of the Mayor or Deputy Mayor

ii) Governing Body meetings will be held on the fourth Thursday of every month. There are some exceptions to this to accommodate public holidays, recess week and Annual Budget/10-year Budget consultation processes

iii) Tuesdays are reserved for minor committees

iv) Wednesdays will be used for workshop time each week

v) Thursdays are reserved for Governing Body meetings, Committee of the Whole meetings and Value for Money Committee meetings, which alternate with the Finance and Performance Committee meetings

vi) Fridays will be kept free of meetings

vii) dates for joint quarterly meetings of the Governing Body and the Independent Māori Statutory Board, and the Governing Body and Local Board chairs are being discussed and will be set once agreement has been reached

viii) Meetings will commence at 10.00am and conclude at 5.00pm.

24. The frequency of committee meetings has already been agreed and is outlined in the Governing Body Terms of Reference.

25. Some meetings have yet to be included in the schedule, such as Treaty of Waitangi Settlement Workshop Party and the Joint Governance Working Party. This is because the membership of these groups is yet to be confirmed. Demographic and Sector Advisory Panel meetings will also be added once their membership is confirmed.

26. Hauraki Gulf Forum meetings dates for 2020 have been agreed and are included in the schedule.

27. Other events scheduled include the Annual Budget and 10-year Budget consultation and decision-making events throughout the first half of 2020 for the Annual Budget and latter part of 2020 for the 10-year Budget. These dates are subject to change depending on future decisions on the consultation process.

Workshops

28. Workshops are informal meetings that support decision-making by:

· providing a mechanism for staff to seek informal guidance from elected members and improve advice requiring a future decision

· enabling elected members to seek further clarification on major issues/items prior to making a formal decision at some point in the future.

29. Decisions are not made at workshops. Part 7 Section 45(2) of LGOIMA states that any meeting of a local authority or its committees at which no resolutions or decisions are made is not a meeting as defined by LGOIMA. As such there is no requirement for the local authority to undertake the following activities as outlined in sections 45 to 54 of LGOIMA for such meetings:

i) to publicly notify the meetings;

ii) to publicly provide agendas and reports at least two working days in advance;

iii) to provide for public and / or media access; and

iv) to provide publicly available minutes after the meeting.

30. Standing Order 5.1.4 states that the proceedings of a workshop, briefing or working party must record:

a) the names of members attending

b) a summary of the nature of the information received.

The notes and presentations from the workshops (except confidential workshops) are published in the relevant governing body or committee agenda the following month.

31. Workshop days will be scheduled every Wednesday, starting in January 2020. The day will be structured into four 90-minute sessions and will be more structured with heightened expectations around purpose and outcomes, in order to improve the efficiency of the sessions.

32. At the Governing Body meeting on 12 November 2019 there was discussion amongst members regarding workshops being open to the public.

33. Some local boards in the past have held their workshops as open meetings, however there is little evidence about the value of this practice and whether it has resulted in more people attending meetings.

34. One advantage of opening workshops to the public is that it would reflect the council’s commitment to open and transparent decision-making, and may help improve trust. It may also enable more participation in early stages of decision-making.

35. However, the key disadvantages and limitations of opening workshops to the public are listed below:

· Workshops enable staff to explore options with the mayor and councilors before ideas are fully developed, and to receive feedback and guidance on policy development or project design. They need to be a safe place for staff to provide free and frank advice and for elected members to test ideas and have open discussions. Workshops work best when they are informal.

· Workshops are not places for formal debate or to challenge policy decisions that have not yet been made, and this needs to be well-understood by the public.

· Many workshops present confidential information and could not be open to the public.

36. There is little information to suggest that the current practice of workshops being closed to the public is causing any concern and staff recommend the status quo. However, the Governing Body could decide to further discuss options.

Tauākī whakaaweawe āhuarangi

Climate impact statement

37. This decision for the Governing Body Meeting Schedule for January 2020 to the local body election 2022 is procedural in nature and any climate impacts will be negligible. The decision is unlikely to result in any identifiable changes to greenhouse gas emissions. The effects of climate change will not impact the decision’s implementation.

Ngā whakaaweawe me ngā tirohanga a te rōpū Kaunihera

Council group impacts and views

38. In the last term the Governing Body and each CCO held a series of workshops called “Scanning the Horizon”. It is anticipated that these meetings will continue. The Council’s Controlled Organisations Oversight Committee will also hear from CCOs on a formal basis throughout the year.

39. The dates of each CCO board meeting have been included in the schedule as CCO liaison councillors will attend them.

Ngā whakaaweawe ā-rohe me ngā tirohanga a te poari ā-rohe

Local impacts and local board views

40. Consultation with Local Board Services has taken place and dates for quarterly joint meetings between the Governing Body and the Local Board chairs have been agreed.

41. The Joint Governance Working Party will be made up of six governing body members and six local board members and will continue to consider matters of both regional and local interest. Meeting dates will be set once the membership has been confirmed.

Tauākī whakaaweawe Māori

Māori impact statement

42. Consultation with the Independent Māori Statutory Board has taken place and dates for quarterly joint meetings with the Governing Body have been agreed.

43. Many of the meetings listed in the schedule will be of relevance to Māori, are co-governance bodies or otherwise involve Māori representatives. Examples include the Independent Māori Statutory Board, the Hauraki Gulf Forum and the Tūpuna Maunga o Tāmaki Makaurau Authority.

Ngā ritenga ā-pūtea

Financial implications

44. There is a budget to conduct political meetings. Any additional meetings will require an adjustment of that budget.

Ngā raru tūpono me ngā whakamaurutanga

Risks and mitigations

45. Past experience has shown that amendments to the meeting schedule are inevitable. The Governing Body is therefore asked to authorise the General Manager Democracy Services to amend the schedule, in consultation with the chair or any affected committee, and subject to the Mayor’s or Deputy Mayor’s approval if any formal meeting or workshop has to be held on a Monday or Friday.

46. Some meetings in the schedule are not council committee meetings, but are included because they involve councillors or other committee members.

Ngā koringa ā-muri

Next steps

47. It is important to get certainty around future meetings so that these can be communicated to the organisation and the public.

48. A three-year schedule means that the Mayor and councillors have some certainty around meeting dates and have a long-term view of the meeting calendar.

49. The Mayor has signalled that the committee structure will be reviewed in 12 months. This may mean some adjustments will need to be made to the meeting schedule. Any changes required will be made according to the principles outlined in paragraph 23 of this report.

50. If major changes are necessary, a new meeting schedule will be submitted to the Governing Body for approval.

Ngā tāpirihanga

Attachments

No.	Title	Page
a ⇩	Draft Meeting Schedule - November 2019 to election October 2022	95

Ngā kaihaina

Signatories

Author

Sarndra O'Toole - Team Leader Governance Advisors

Authorisers

Marguerite Delbet - General Manager Democracy Services

Phil Wilson - Governance Director

Stephen Town - Chief Executive

Governing Body

26 November 2019

Summary of Governing Body information memoranda and briefings - 26 November 2019

File No.: CP2019/19331

Te take mō te pūrongo

Purpose of the report

1. To receive a summary and provide a public record of memoranda or briefing papers that may have been held or been distributed to Governing Body members.

Whakarāpopototanga matua

Executive summary

2. This is a regular information-only report which aims to provide greater visibility of information circulated to Governing Body members via memoranda/briefings or other means, where no decisions are required.

3. The following memos were circulated to members of the Governing Body:

Date	Subject
21/11/19	Ports of Auckland location study and statement of corporate intent

4. The following workshops/briefings have taken place:

Date	Workshop/Briefing
13/11/19	Remuneration and Expenses

5. These documents can be found on the Auckland Council website, at the following link:

http://infocouncil.aucklandcouncil.govt.nz/

o at the top left of the page, select meeting/Te hui “Governing Body” from the drop-down tab and click “View”;

o under ‘Attachments’, select either the HTML or PDF version of the document entitled ‘Extra Attachments’.

6. Note that, unlike an agenda report, staff will not be present to answer questions about the items referred to in this summary. Governing Body members should direct any questions to the authors.

Ngā tūtohunga

Recommendation/s

That the Governing Body:

a) receive the Summary of Governing Body information memoranda and briefings – 26 November 2019.

Ngā tāpirihanga

Attachments

No.	Title	Page
a	Ports of Auckland location study and statement of corporate intent (Under Separate Cover)
b	Remuneration and Expenses Workshop (Under Separate Cover)

Ngā kaihaina

Signatories

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

Mayor	Hon Phil Goff, CNZM, JP
Deputy Mayor	Deputy Mayor Cr Bill Cashmore
Councillors	Cr Josephine Bartley	Cr Richard Hills
	Cr Dr Cathy Casey	Cr Tracy Mulholland
	Cr Fa’anana Efeso Collins	Cr Daniel Newman, JP
	Cr Pippa Coom	Cr Greg Sayers
	Cr Linda Cooper, JP	Cr Desley Simpson, JP
	Cr Angela Dalton	Cr Sharon Stewart, QSM
	Cr Chris Darby	Cr Wayne Walker
	Cr Alf Filipaina	Cr John Watson
	Cr Hon Christine Fletcher, QSO	Cr Paul Young
	Cr Shane Henderson