Agenda of Council - 13 00 2019

PALMERSTON NORTH CITY COUNCIL

Extraordinary Council MEETING

13 November 2019

MEETING NOTICE

Pursuant to Clause 21 of Schedule 7 of the Local Government Act 2002, I hereby requisition an extraordinary meeting of the Council to be held at 9.00am on Wednesday, 13 November 2019 in the Council Chamber, first floor, Civic Administration Building, 32 The Square, Palmerston North, to consider the business stated below.

MAYOR

Order of Business

1. Apologies

2. Notification of Additional Items

Pursuant to Sections 46A(7) and 46A(7A) of the Local Government Official Information and Meetings Act 1987, to receive the Chairperson’s explanation that specified item(s), which do not appear on the Agenda of this meeting and/or the meeting to be held with the public excluded, will be discussed.

Any additions in accordance with Section 46A(7) must be approved by resolution with an explanation as to why they cannot be delayed until a future meeting.

Any additions in accordance with Section 46A(7A) may be received or referred to a subsequent meeting for further discussion. No resolution, decision or recommendation can be made in respect of a minor item.

3. Declarations of Interest (if any)

Members are reminded of their duty to give a general notice of any interest of items to be considered on this agenda and the need to declare these interests.

4. Confirmation of Minutes Page 7

“That the minutes of the Inaugural Council meeting of 30 October 2019 Part I Public be confirmed as a true and correct record.”

Reports

5. Voting System for Certain Appointments Page 15

Memorandum, presented by John Annabell, Legal Counsel.

6. Committee Structures, Councillor Portfolios, and Appointments to Bodies Page 19

Memorandum, presented by Grant Smith, Mayor.

7. Extension of Right to Vote to Non-Committee Members Page 49

Memorandum, presented by John Annabell, Legal Counsel.

8. Amendments to Delegations Manual Page 51

Memorandum, presented by John Annabell, Legal Counsel.

9. Proposed changes to foundation documents for Local Government Funding Agency (LGFA) Page 59

Memorandum, presented by Steve Paterson, Strategy Manager - Finance.

10. Meeting Calendar 2019 Page 69

Memorandum, presented by Carly Chang, Democracy & Governance Administrator.

11. Council Work Schedule Page 73

12. Exclusion of Public

To be moved:

“That the public be excluded from the following parts of the proceedings of this meeting listed in the table below.

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 are as follows:

General subject of each matter to be considered	Reason for passing this resolution in relation to each matter	Ground(s) under Section 48(1) for passing this resolution

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 the relevant part of the proceedings of the meeting in public as stated in the above table.

Also that the persons listed below be permitted to remain after the public has been excluded for the reasons stated.

[Add Third Parties], because of their knowledge and ability to assist the meeting in speaking to their report/s [or other matters as specified] and answering questions, noting that such person/s will be present at the meeting only for the items that relate to their respective report/s [or matters as specified].

Palmerston North City Council

Minutes of the Inaugural Council Meeting Part I Public, held in the Council Chamber, First Floor, Civic Administration Building, 32 The Square, Palmerston North on 30 October 2019, commencing at 7.00pm

Members

Present:

Grant Smith (The Mayor) (in the Chair) and Councillors, Brent Barrett, Susan Baty, Rachel Bowen, Zulfiqar Butt, Vaughan Dennison, Renee Dingwall, Lew Findlay QSM, Patrick Handcock ONZM, Leonie Hapeta, Lorna Johnson, Billy Meehan, Karen Naylor, Bruno Petrenas, Aleisha Rutherford and Tangi Utikere.

136-19

Address by the Chief Executive

The address by the Chief Executive is attached to these minutes.

137-19

Installation of Mayor and Mayoress

The Mayor made the required declaration under Clause 14 of Schedule 7 of the Local Government Act 2002, witnessed by the Chief Executive.

The Mayor was then invested with his Chain of Office.

The Mayoress was invested with her Chain of Office.

138-19	Installation of Councillors
	Councillors made the declaration required by Clause 14 of Schedule 7 of the Local Government Act 2002, which were witnessed by the Mayor.

139-19	Inaugural address by The Mayor
	The Inaugural Address by the Mayor is attached to these minutes.

140-19

Appointment of Deputy Mayor

Moved Grant Smith, seconded Vaughan Dennison.

RESOLVED

1. That the Council note that under clause 41A(3)(a) of Schedule 7 of the Local Government Act 2002, the Mayor has appointed Councillor Tangi Utikere as the Deputy Mayor.

Clause 140-19 above was carried 16 votes to 0, the voting being as follows:

For:

The Mayor (Grant Smith) and Councillors Brent Barrett, Susan Baty, Rachel Bowen, Zulfiqar Butt, Vaughan Dennison, Renee Dingwall, Lew Findlay QSM, Patrick Handcock ONZM, Leonie Hapeta, Lorna Johnson, Billy Meehan, Karen Naylor, Bruno Petrenas, Aleisha Rutherford and Tangi Utikere.

141-19

Date and Time of the First Council Meeting

Moved Grant Smith, seconded Tangi Utikere.

RESOLVED

1. That the first meeting of the Council be held as an extraordinary meeting to commence at 9.00am on Wednesday 13 November 2019 to consider matters outstanding from the Inaugural Council meeting and other urgent business, pursuant to Clause 21(5)(d) of Schedule 7 of the Local Government Act 2002. This meeting will be held in the Council Chamber, first floor, Civic Administration Building, 32 The Square, Palmerston North.

Clause 141-19 above was carried 16 votes to 0, the voting being as follows:

For:

Reports

142-19

Explanation of Statutes

Memorandum, presented by John Annabell, Legal Counsel.

Moved Grant Smith, seconded Tangi Utikere.

RESOLVED

1. That the Memorandum entitled “Explanation of Statutes” be noted.

Clause 142-19 above was carried 16 votes to 0, the voting being as follows:

For:

The meeting finished at 7.39pm

Confirmed 13 November 2019

Mayor

PALMERSTON NORTH CITY COUNCIL

Chief Executive’s Address to the Inaugural Council meeting

Tena koutou, tena koutou, tena koutou katoa

Distinguished guests, Ladies and Gentlemen, friends and whanau

Welcome to this inaugural meeting of the Palmerston North City Council.

I extend my congratulations to the incoming Mayor and Councillors.

The period running up to the election will have been stressful for all candidates but tonight you can relax as the culmination of all that effort is this very special civic occasion with the installation of the Mayor and Councillors for the new term of the Palmerston North City Council.

All elected members stood for their respective values, ideals and ideas for our city.

Whatever your views you will shortly be asked to make a public declaration to work in the best interests of Palmerston North City. Once you have made your declarations you will form a government at a local level and become an integral part of New Zealand’s democratic structure.

In this important endeavour of being an elected member to Council you will face issues and challenges which will draw on your judgement and skills. It will require you to air your views, debate matters and ultimately vote in the best interests of the city. Staff will assist you in your role by providing you with impartial advice, without fear or favour, which you can choose to accept or not.

When sitting around the Council table you will be part of a team that the electorate has empowered to work for the entire city. In exercising your role you will make decisions in an open and transparent manner unless for good specific reasons the public should be excluded from parts of a meeting. Healthy debate of issues will influence decisions and the future direction of Council and this is the task given to you by the voters.

At times you will need to consult the public before making decisions for the city. This will involve views presented to the council being received with an open mind and given due consideration before decisions are made.

Parliament has charged you to enable democratic local decision-making and action by, and on behalf of, Palmerston North City; and to meet the current and future needs of the city for good-quality local infrastructure, local public services, and performance of regulatory functions in a way that is most cost-effective for households and businesses.

Legislation has determined, good-quality infrastructure, services and functions to mean efficient, effective, and appropriate to present and anticipated future circumstances. In order to recognise and respect the Crown’s responsibility council needs to take appropriate account of the principles of the Treaty of Waitangi and to maintain and improve opportunities for Maori to contribute to the local government decision-making processes.

In the weeks following the election there has been a good spirit among the incoming elected members and the city will look forward to this continuing in the new term of Council. Staff also look forward to working with you in this new term.

Once again, congratulations

Mayor Grant Smith’s Inaugural Address

Tēnā koutou, tēnā koutou, tēnā koutou katoa.

Kia Ora, and it is now with great pleasure that I address you as the 29^th Mayor of Palmerston North for this new term of Council.

Firstly some acknowledgements….

I want to acknowledge Rangitane as mana whenua, and Wiremu Te Awe Awe for your Karakia and kind words….

The Regional Mayors led by Andy Watson of Rangitikei, with apologies from Mayor Helen Worboys of Manawatu and Mayor Bernie Wanden of Horowhenua, both unable to be here with their own Inaugural Meetings.

And also my fellow Councillors and Chief Executive Heather Shotter thank you for your comments…

And I acknowledge everyone else who is gathered here today, for your attendance and support of the Palmerston North City Council. Especially my father Tony, father-in-law Laurence and his partner Barbara, and our wider family members, - they have helped shape me to be who I am today.

Although this is the start of a new Council as Mayor, in last term there has been much to be proud of and the great work that happened within our City Council, in fact, in all sectors of Palmerston North. I do believe we are in exciting times and have started to realise the potential in our city.

We set about on revitalizing, growing and setting a new vision for Palmerston North, and although we have not achieved everything, I do believe there has been much positive work done, and like any good leader, I will use my ‘skills and ability’ to inspire and lead our team of Councillors to get better outcomes for our City and wider region.

I am excited and impressed with ‘our team’ of Councillors, who truly reflect our diverse community and have collectively already in the short time together shown me that we’ll knit well, and be a very effective Council.

I am passionate about Palmerston North and our People.

Our vision for Palmerston North is “Small City Benefits, Big City Ambition”, as we have so much going for us in the future..

- in Education, AgriBusiness, Health, Manufacturing, Tech & Logistics.

- we are NZ’s Defence City.

- We have the most PHD’s (per Capita) in our nation.

- We are NZ’s Food Science Research and (Innovation capital),

- We have healthy and sustainable population growth,

- our City is alive, innovative and vibrant.

- our youth are well educated, our relationship with Massey University, UCOL, IPU and the education sector is at an all-time high and and there are many local jobs for them to go to

- Rangitane are prosperous, building a future for their whanau

- We are finally embracing our river, our Awa with many thousands using the city’s pathways and the new He Ara Kotahi Bridge each week…

- And outsiders will now rate Palmerston North as a beautiful, vibrant and smart City.

BUT… For this Vision to happen….

Palmerston North City and the wider Manawatu must be more ambitious – and that needs to start from the Mayor and Councillors,

The city has to lead and function effectively. We must be a team. A leadership team that will continue….

· To lobby Wellington, and win Government and private investment for our city….

· Securing partnerships for the community, ensuring we don’t leave people behind

· And improving our environment

The city is in a strong financial position with a AA S&P credit rating (1 below the crown and 1 of only 6 NZ Councils with this rating). The next decade will see Palmerston North and this region experience over $3.5 billion worth of infrastructure work. A pipeline of work not seen here for 30+ years.

In the next 3 years winning investment, partnerships and improving infrastructure will be vital for Palmerston North, the wider Manawatu Region and our People….

Issues like - Housing –our River - CBD Vibrancy – Environmental Sustainability- the Arena Master Plan and Economic Development will ALL have focus and need addressing.

As your Mayor I will be doing my upmost to lead a United Council that is positive and puts Palmerston North and its People first!

There are also many thank you’s…

To the many Palmerstonians that voted for me to again become your Mayor and our Councillors– Our thanks! We will be doing our utmost to lead, but also engage and listen to our community, our ratepayers, ensuring we make the right decisions for our City.

Some staff need to be acknowledged – firstly the Deputy Electoral officer Dr John Annabel, and as John retires next month, thank you for your service to Palmerston North.

To my work colleagues in the Mayor’s Office Nicky, Rachel and Dom thank you for your service to the city and support.

To Heather, the Governance team and the staff here at Council, many thanks for making our new Councils Induction easier…. And for organising tonight.

Finally to my wife and the Mayoress Michelle, and our children Regan & Emma (Emma who is here tonight). We have had to put ourselves ‘out-there’ in the public arena, taking the good with the not so good, and this has certainly changed our lifestyle. I thank you all for your un-conditional love and support.

As a Council we have hit the ground running, and after talking and listening to all the Councillors I will have some Committee & appointment announcements to make shortly. I congratulate the Deputy Mayor Tangi Utikere. I will also be announcing three new Committees – An Environmental Sustainability Committee, a new Committee with Rangitane and an Infrastructure Committee. The membership of these committees and portfolios are to follow.

In summary…

Councillors I wish you all the very best for the next 3 year Term, and I’m absolutely sure it will be one of Palmerston North’s best with exciting times ahead.

To the members of the public who are here tonight, I and these Councillors have made a very solemn pledge to serve this City and community, to lead and do the very best collectively that we can for Palmerston North. That is a pledge I will be honouring to the letter.

Thank you for coming this evening

Kia Ora and Good Evening

No reira, tena koutou, tena koutou tena tatou, katoa

PALMERSTON NORTH CITY COUNCIL

Memorandum

TO: Council

MEETING DATE: 13 November 2019

TITLE: Voting System for Certain Appointments

Presented By: John Annabell, Legal Counsel

APPROVED BY: Sheryl Bryant, General Manager - Strategy & Planning

RECOMMENDATION TO Council

1. That the Council resolves to adopt System A as the voting system for all appointments made by the current Council, its committees and subcommittees to which Clause 25 of Schedule 7 of the Local Government Act 2002 applies, noting that this resolution would not apply to any appointment made by the Mayor pursuant to Section 41A of the Local Government Act 2002.

1. ISSUE

To consider the procedure to be used for the election or appointment of the Deputy Mayor, the Chairperson and Deputy Chairperson of any Council Committee, and any representative of the Council. The chosen procedure will apply throughout the current term of Council, but will not apply to Mayoral appointments. At this meeting of the Council, the procedure will apply only to the appointment of Deputy Chairs of Committees and to the appointment of outside representatives.

2. BACKGROUND

Before the Council can undertake an election or appointment, other than those made by the Mayor under Section 41A, and in accordance with the Local Government Act 2002, one of the following voting systems needs to be instated.

Under clause 25 Schedule 7 of the Local Government Act, the Council must determine by resolution that a person be elected or appointed by using one of the following systems of voting:

Ÿ The voting system described as “System A”.

Ÿ The voting system described as “System B”.

Under System A, the person elected or appointed is the person who receives the votes of a majority of the members of the Council present and voting, and the system has the following characteristics:

(i) there is a first round of voting for all candidates; and

(ii) if no candidate is successful in that round there is a second round of voting from which the candidate with the fewest votes in the first round is excluded; and

(iii) if no candidate is successful in the second round there is a third, and if necessary subsequent, round of voting from which, each time, the candidate with the fewest votes in the previous round is excluded; and

(iv) in any round of voting, if two or more candidates tie for the lowest number of votes, the person excluded from the next round is resolved by lot.

Under System B, a person is elected or appointed if he or she receives more votes than any other candidates, and the system has the following characteristics:

(i) there is only one round of voting; and

(ii) if two or more candidates tie for the most votes, the tie is resolved by lot.

In summary, before any election or appointment is made for Chairperson or Deputy Chairperson of a committee, a decision needs to be made on which of the two voting systems is to be used. It is recommended that the Council pass a resolution that applies not just for this Council Meeting, but all Council and Committee meetings for the current term of Council. This is to avoid the need for the Council or a committee to consider this issue before each relevant appointment is made.

Whichever system is adopted, the appropriate procedure that then applies is for each candidate to be nominated (moved and seconded) by two members. After voting using the chosen system, the Chairperson simply declares the successful person as being elected or appointed. A confirming resolution is not necessary.

In relation to the appointment of members of committees and their Deputy Chairpersons, members of committees should be appointed first (by resolutions made in the normal manner, subject to any amendments) and then the appointment of Deputy Chairperson should follow using either System A or System B, after a decision has been made on which system to adopt. This assumes that the Mayor has already appointed Chairpersons of each committee.

3. NEXT STEPS

Based on Council decisions to adopt System A in 2010, 2013 and 2016, it is recommended that System A also be adopted for this term of Council.

4. Compliance and administration

Does the Committee have delegated authority to decide?	Yes
Are the decisions significant?	No
If they are significant do they affect land or a body of water?	No
Can this decision only be made through a 10 Year Plan?	No
Does this decision require consultation through the Special Consultative procedure?	No
Is there funding in the current Annual Plan for these actions?	Yes
Are the recommendations inconsistent with any of Council’s policies or plans?	No
The recommendations contribute to Goal 5: A Driven and Enabling Council
The recommendations contribute to the outcomes of the Driven and Enabling Council Strategy
The recommendation covers procedural matters relating to the operation of Council and Committee meetings for the current term of Council.

Attachments

Nil

PALMERSTON NORTH CITY COUNCIL

Memorandum

TO: Council

MEETING DATE: 13 November 2019

TITLE: Committee Structures, Councillor Portfolios, and Appointments to Bodies

Presented By: Grant Smith, Mayor

APPROVED BY: Heather Shotter, Chief Executive

RECOMMENDATIONS TO Council

1. That the Council notes the establishment of Committees made by the Mayor as attached in Appendix 1 to the report dated 13 November and titled “Committee Structures, Councillor Portfolios, and Appointments to Bodies”.

2. That the Council notes the Chairperson appointments made by the Mayor to the Committees as identified in Appendix 1 to the report dated 13 November and titled “Committee Structures, Councillor Portfolios, and Appointments to Bodies”.

3. That the Council establishes the Chief Executive’s Performance Review Panel as attached in Appendix 1 to the report dated 13 November and titled “Committee Structures, Councillor Portfolios, and Appointments to Bodies”.

4. That the Council approves the Mayor’s recommendations for the Chairperson and Deputy Chairperson of the Chief Executive’s Performance Review Panel as identified in Appendix 1 to the report dated 13 November and titled “Committee Structures, Councillor Portfolios, and Appointments to Bodies”.

5. That the Council approves the Mayor’s recommendations for Deputy Chairpersons of the Committees as identified in Appendix 1 to the report dated 13 November and titled “Committee Structures, Councillor Portfolios, and Appointments to Bodies”.

6. That the Council approves the Mayor’s recommendations for councillor membership of Committees and the Chief Executive’s Performance Review Panel, as identified in Appendix 1 to the report dated 13 November and titled “Committee Structures, Councillor Portfolios, and Appointments to Bodies”.

7. That the Terms of Reference for the Council and Committees and specific functions of the Chief Executive’s Performance Review Panel be adopted in the form identified in Appendix 1 to the report dated 13 November and titled “Committee Structures, Councillor Portfolios, and Appointments to Bodies”.

8. That an independent person be appointed to the Finance & Audit Committee and that a recruitment process be undertaken to fill that vacancy.

9. That, in regard to the independent person on the Finance & Audit Committee, a recruitment panel comprising the Mayor, Deputy Mayor, and Chairperson of the Finance & Audit Committee be delegated authority to undertake the recruitment process and recommend a preferred appointee to the Council, having regard to the following skill sets:

· finance and accounting, including financial reporting;

· broad governance, assurance, and risk management disciplines;

· understanding of internal controls and assurance frameworks, including understanding of the roles of internal and external audit;

· knowledge of the sector or industry in which the public entity operates; and

· other attributes as specifically relevant to the entity (for example, legal or information technology experience).

10. That a Rangitāne representative be on each of the Community Development, Economic Development, and Environmental Sustainability Committees; such representation to be nominated by Rangitāne and approved by the Council.

11. That, in regard to the community membership of the CCNZ/Arts & Culture Fund Committee, nominations be sought from the named organisations and from the wider community for the two community representatives.

12. That, in regard to the membership of the CCNZ/Arts & Culture Fund Committee, a selection panel comprising the Mayor or Deputy Mayor and the Chair of the Community Development Committee and the Chair and Deputy Chair of the Arts, Culture & Heritage Committee be established to make recommendations to the Council on the community membership appointees to the Committee.

13. That all members of the Council who are already accredited under the Making Good Decisions certification programme are appointed Hearings Commissioners and that those persons have such powers and responsibilities as delegated by the Council to Commissioners.

14. That any members of the Council who become accredited under the Making Good Decisions certification programme be deemed to be appointed Hearings Commissioners from the date their accreditation is confirmed and that those persons have such powers and responsibilities as delegated by the Council to Commissioners and are deemed to be appointed to the Hearings Committee.

15. That any member of the Hearings Committee wishing to attain accreditation or re-accreditation or training as a Chair under the Making Good Decisions certification programme be authorised to do so, with expenses paid.

16. That the Council notes the establishment of the Joint Strategic Planning Committee will be subject to the Local Government Act 2002, Schedule 7, Clause 30A which requires a separate report including an agreement with Manawatu District Council.

17. That the Council adopts the Terms of Reference and Scope for Councillor Portfolios attached in Appendix 2 to the report dated 13 November and titled “Committee Structures, Councillor Portfolios, and Appointments to Bodies”.

18. That the Council approves the Mayor’s recommendations for Councillor portfolios as listed in Appendix 2 to the report dated 13 November and titled “Committee Structures, Councillor Portfolios, and Appointments to Bodies”.

19. That any Steering Groups established by the previous Council and still operating up to the end of the Council term be re-established with the same terms of reference.

20. That the Council approves the Mayor’s recommendations for appointments to bodies as listed in Appendix 3 to the report dated 13 November and titled “Committee Structures, Councillor Portfolios, and Appointments to Bodies”; noting that the external appointments to the CCNZ/Arts & Culture Fund Committee were extended to the 30 June 2019 by the Council at its meeting of 7 October 2019.

21. That the “Policy on Appointments to Council Committees”, in regard to CCNZ/Arts & Culture Fund Committee, be reviewed.

1. ISSUE

The Local Government Act 2002, Schedule 7, Clause 30(7) provides that Committees, Sub-Committees and any other subordinate decision-making body is deemed discharged on the coming of the office of the new council. Therefore, following each election new committee structures are established to conduct the business of council. In addition, appointments are made to bodies that specifically make provision for the appointment of elected members or where the Council appoints external representatives. Finally, as with the previous term of council, to establish portfolios to enhance engagement between the Council and the Community in particular sectors.

2. BACKGROUND

In accordance with the Local Government Act 2002 S41A(3) the Mayor has the following powers in relation to this report:

“(b) to establish committees of the territorial authority:

(i) may make the appointment before the other members of the committee are determined; and

(ii) may appoint himself or herself.”

The Mayor has exercised his power by establishing the following Committees and Chairpersons:

· Committee of Council; Chairperson – Mayor Smith

· Finance & Audit; Chairperson – Councillor Baty

· Infrastructure; Chairperson – Councillor Dennison

· Planning & Strategy; Chairperson – Councillor Rutherford

· Arts, Culture & Heritage; Chairperson – Councillor Bowen

· Community Development; Chairperson – Councillor Johnson

· Economic Development; Chairperson – Deputy Mayor Utikere

· Environmental Sustainability; Chairperson – Councillor Barrett

· Play, Recreation & Sport; Chairperson – Councillor Hapeta

· Rangitāne o Manawatū Co-managment; Chairperson – to be determined

· Hearings; Chairperson – Deputy Mayor Utikere

· CCNZ/Arts & Culture Fund Committee – Councillor Bowen

In addition, the Council will need to establish the Chief Executive’s Performance Review Panel and appoint a Chairperson, and Deputy Chairperson.

It should be noted if the Council does not agree with the decisions the Mayor has exercised under his delegated authority the Council has the ability to discharge a chairperson and discharge and reconstitute a committee as per the Local Government Act 2002 Schedule 7.

Committee and Panel Structures

Key elements of the Committee and Panel structures are:

· The Finance & Audit, Infrastructure, and Planning & Strategy Committees will meet monthly on a Wednesday at 9.00am on their respective days.

· Community Development, Arts, Culture & Heritage, Economic Development, Environmental Sustainability, and Play, Recreation & Sport Committees will meet quarterly on a Wednesday commencing at 9.00am on their respective days.

· The Committee of Council, Hearings Committee, and Chief Executive’s Panel will meet as required.

· The Rangitāne o Manawatū Committee has been established in accordance with the “Kawenta in Relation to Te Motu o Poutoa” agreement between Rangitāne o Manawatu and Palmerston North City Council. This agreement, while specific to the co-management of Te Motu o Poutoa, has the ability to extend to other reserves which are wāhi tūpuna to Rangitāne, as the partnership grows. It is agreed the Chair and the Deputy Chair will be appointed annually by the Council. For the first year, the Chair will be appointed either from Rangitāne or Council members of the Committee and the Deputy Chair from the other partner. It is envisaged that this Committee will meet six-monthly.

· The establishment of the Joint Strategic Planning Committee is subject to the Local Government Act 2002, Schedule 7, Clause 30A the pertinent section being:

“(1) A local authority may not appoint a joint committee under clause 30(1)(b) unless it has first reached agreement with every other local authority or public body that is to appoint members of the committee.

(2) An agreement under subclause (1) must specify—

(a) the number of members each local authority or public body may appoint to the committee; and

(b) how the chairperson and deputy chairperson of the committee are to be appointed; and

(d) what responsibilities (if any) are to be delegated to the committee by each local authority or public body; and

(e) how the agreement may be varied.”

· The establishment of the Joint Committee will be subject to a separate report.

· The establishment of the Jaycee Trust Travelling Fellowship Panel will be subject to a separate report in the New Year.

Appointments to Committees

The Local Government Act 2002, Schedule 7, Clause 31 gives authority to appoint external members to a committee:

“The members of a committee or subcommittee may, but need not be, elected members of the local authority, and a local authority or committee may appoint to a committee or subcommittee a person who is not a member of the local authority or committee if, in the opinion of the local authority, that person has the skills, attributes, or knowledge that will assist the work of the committee or subcommittee.”

External members appointed to committees will have full voting rights as a member of the respective committee.

There are three such instances where committee skill sets could be enhanced. These are discussed in turn.

Firstly, an external appointment to the Finance & Audit Committee. An independent person on audit & risk committees is in line with best practice recommended by the Office of the Auditor General and Local Government New Zealand: “Having an external appointee not only brings additional skill to the committee that would not normally be available but also brings a degree of independence.” (Local Government Audit & Risk Management; prepared for LGNZ by Philip Jones, P J & Associates).

A recruitment process will need to be undertaken for the independent person on the Finance & Audit Committee. It is recommended that a panel comprising the Mayor, Deputy Mayor and Chair of the Finance & Audit Committee be delegated this task and recommend to Council the preferred appointee. It is also recommended that the panel have regard to the skill sets of audit committees identified by The Office of the Auditor General when undertaking the recruitment process. These skill sets are:

· finance and accounting, including financial reporting;

· broad governance, assurance, and risk management disciplines;

· understanding of internal controls and assurance frameworks, including understanding of the roles of internal and external audit;

· knowledge of the sector or industry in which the public entity operates; and

· other attributes as specifically relevant to the entity (for example, legal or information technology experience).

Secondly, Rangitāne representation on committees, as mana whenua. The Council has developed a strong partnership with Rangitāne and it is appropriate for them to be involved in the earlier stages of decision-making alongside Council. The Treaty of Waitangi is most strongly expressed in the local context and therefore it is critical for mana whenua to be supported to contribute their knowledge of the cultural and historical landscape of this area, and to facilitate relationships of partnership across sectors. There are certain challenges and opportunities our wider Māori population faces in the City, in particular an over-representation in facing social challenges. There are also tremendous opportunities in achieving the potential of Treaty settlements to contribute to the economic wellbeing of the City. Additionally, Rangitāne provides leadership in relationship to environmental sustainability and it is important to recognise their critical role as regards to kaitiakitanga.

It is, therefore, recommended that Rangitāne representation be included on the Community Development Committee, the Economic Development Committee, and the Environmental Sustainability Committee. It would be appropriate to approach Rangitāne to nominate a representative on each of these committees.

It should be noted that councils that have similar appointments to council committees include Napier City, Clutha District, Rotorua District, Kāpiti District, Marlborough District, and Waitaki District. A number of regional Councils including Bay of Plenty, Hawkes Bay, and Northland have Iwi appointees to a number of their committees. These examples all give full voting rights to the iwi appointees.

Thirdly, iwi representation on the Hearings Committee. It is intended to offer Rangitāne the opportunity for two iwi to become accredited under the Making Good Decisions certification programme with a view to being appointed as Hearings Commissioners and as members of the Hearings Committee. These appointments will be subject to a separate report.

In regard to appointments on the CCNZ/Arts & Culture Fund Committee, Council at its 7 October 2019 meeting resolved:

“That with respect to the appointment of members of the District Licensing Committee, the CCNZ/Arts and Culture Fund Committee, and any other committees that include external appointments, the following procedures apply for all appointments apart from Iwi appointments:

a. Applications for membership will be invited from elected members (if appropriate) and from the wider community and will be publicly advertised.

b. A selection panel will be established to consider all applications for membership and will make recommendations to the Council with regard to final appointments to be made.

c. The selection panel will comprise the Mayor or Deputy Mayor, the Chairperson of the Community Development Committee or appropriate committee with regard to the CCNZ/Arts and Culture Fund Committee and the Chief Executive in other cases, and two other Councillors who have not nor will be able to apply to become a member of the relevant committee.

d. The decision on the two Councillors for the selection panel will be made by the Mayor or Deputy Mayor in conjunction with the Chairperson of the Community Development or appropriate committee in the case of appointment to the CCNZ/Arts and Culture Fund Committee and by the Mayor and Deputy Mayor in the case of other appointments.

e. The panel will appoint its own chair at the meetings as soon as possible to determine membership of the relevant committee.

f. The selection panel’s report to the Council will include the names and brief biographical statements of those persons recommended for appointment, will list the names of all other applicants, and will include recommendations regarding chairpersonship and deputy chairpersonship of committees as appropriate.

g. Appointments to the District Licensing Committee will be made for a period of up to three years whilst those of other committees will be made for the then current term of Council.”

The policy anticipated that the councillor members on the CCNZ/Arts & Culture Fund Committee would not have been determined at the time of selection of the external members to the Committee. This report notes the appointment made by the Mayor of the Chairperson of the Committee and a Council recommendation of the Deputy Chairperson. It is, therefore, appropriate that the Chairperson and Deputy Chairperson of the CCNZ/Arts & Culture Fund Committee be part of the selection panel for the remaining membership of the Committee.

Committee Delegations

In terms of committee delegations, these will be addressed in a separate report. Elected members’ remuneration and remuneration of external appointees to committees is also addressed in a separate report.

The committee structure, terms of reference, chairs, deputy chairs and membership are attached in Appendix 1.

Portfolios

Attached in Appendix 2 is the proposed Terms of Reference for portfolio holders, including the scope of each portfolio. The primary purpose of portfolios is to enable more effective engagement between the Council and the community. The specific responsibilities should be enacted within this purpose. Each portfolio has a lead councillor who is responsible for reporting to the relevant committee.

Appointments to Bodies

In accordance with the Local Government Act 2002, Schedule 7, Clause 30(7) Council will need to re-establish any subordinate bodies that it wishes to continue. It is proposed that this is dealt with by an omnibus recommendation. Under the Delegations Manual, Clause 166.9 the Council is the determining body for the appointments of Council representation on any body. Appendix 3 identifies the bodies for which there is Council representation and makes recommendations on councillor appointments to these bodies. It should be noted that the Council, at its 7 October 2019 meeting, extended the appointments of Sheridan Hickey and Margaret May on the Performing Arts Trust Board through until 30 June 2020.

3. NEXT STEPS

Once committee structures and appointments have been established, committees can start functioning. An initial round of committee meetings will be held in December for Finance & Audit, Infrastructure, and Arts, Culture & Heritage Committees, being those committees with pending reports for consideration. Notice of Council and Committee meetings to the end of the calendar year 2019 will be provided to elected members and advertised publicly, as required by statute once adopted by the Council.

A council meeting calendar will be brought to the 18 December meeting of Council for the 2020 calendar year.

Recruitment will commence for the independent person to sit on the Finance & Audit Committee.

Recruitment will commence for community members and community group representatives on the CCNZ/ Arts & Culture Fund Committee.

Rangitāne will be approached to nominate its representatives on the Community Development, Economic Development, and Environmental Sustainability Committees and to identify two people to become accredited under the Making Good Decisions certification programme.

Rangitāne will also be approached to seek its three appointments to the Rangitāne o Manawatū Committee. Once appointments are made a recommendation on the Chair and Deputy Chair will be made to the Council.

Organisations will be advised of the Council’s appointments.

A report will be prepared to address establishment of the Jaycee Trust Travelling Fellowship Selection Panel in the New Year.

Compliance and administration

Does the Council have delegated authority to decide?		Yes
Are the decisions significant?		No
If they are significant do they affect land or a body of water?		No
Can this decision only be made through a 10 Year Plan?		No
Does this decision require consultation through the Special Consultative procedure?		No
Is there funding in the current Annual Plan for these actions?		Yes
Are the recommendations inconsistent with any of Council’s policies or plans? The recommendations in relation to the Selection Panel membership for the CCNZ/Arts & Culture Fund Committee are inconsistent with Council’s Policy on Appointments to Council Committees adopted by Council on 7 October. What is proposed is a minor deviation to the Selection Panel membership as the current policy had not anticipated that the councillor members would be known at the time that the Panel is established. It is recommended that this Policy be reviewed in regard to the CCNZ/Arts & Culture Fund Committee.		Yes
The recommendations contribute to Goal 5: A Driven and Enabling Council
The recommendations contribute to the outcomes of the Driven and Enabling Council Strategy
The recommendations contribute to the achievement of action/actions in Not Applicable
Contribution to strategic direction and to social, economic, environmental and cultural well-being	Establishing committee structures and assigning elected members to specific duties either through portfolios or appointments to bodies will enable council to effectively conduct the business of council and engage with the community.

Attachments

1.	Terms of Reference - Council and Committees ⇩
2.	Terms of Reference - Portfolios ⇩
3.	Appointments to Bodies ⇩

PALMERSTON NORTH CITY COUNCIL

Memorandum

TO: Council

MEETING DATE: 13 November 2019

TITLE: Amendments to Delegations Manual

Presented By: John Annabell, Legal Counsel

APPROVED BY: Sheryl Bryant, General Manager - Strategy & Planning

RECOMMENDATION(S) TO Council

1. That the Delegations Manual be amended, the amendments being as set out in the attachment to the memorandum dated 13 November 2019 and titled “Amendments to Delegations Manual”.

1. ISSUE

This memorandum proposes amendments to be made to the Council’s Delegations Manual, which was last updated earlier this year.

2. BACKGROUND

The proposed amendments to the Delegations Manual are set out in the attachment to this memorandum, together with an explanation for each amendment. These amendments have been recommended for the following reasons:

· To reflect title changes arising from recent restructures within the Council’s staff.

· To clarify and enable Committees to receive or note any report, memorandum or other information, instruct the Chief Executive, and refer any matter to another Committee or to the Council.

· To state that committees cannot establish any sub-committee, working party or advisory group. Appropriate recommendations, however, may be made to the Council.

· To remove the delegation to Committees to approve statements of proposal or other draft consultation documentation, but the ability to make a determination under Section 155 of the Local Government Act 2002 relating to a proposed bylaw will be maintained as an authority delegated to the Planning & Strategy Committee.

· To update the name “Finance and Performance Committee” to “Finance & Audit Committee”.

· To provide for the Rangitāne o Manawatū Committee to undertake the powers of the Council under the Reserves Act 1977 with regard to Te Motu o Poutoa Reserves and any other reserves that may be administered by that Committee.

· To update delegations to the Chief Executive’s Performance Review Panel.

· To update the name “New Zealand Local Government Insurance Corporation Limited” to “Civic Financial Services Limited”.

· To enable the Mayor to approve submissions made to Parliamentary select committees where there is insufficient time to obtain consent of Council beforehand, provided that approval is sought at the next available opportunity.

· To provide for either the Chairperson of the Finance & Audit Committee or the independent member appointed to that Committee to approve the reimbursement of expenses incurred by the Mayor and Chief Executive.

A similar review is currently being undertaken regarding powers delegated by the Chief Executive to Council officers.

3. NEXT STEPS

Following the adoption of this memorandum, the Council’s Delegations Manual will be updated accordingly. Also included in the update will be the Terms of Reference of Council Committees, which is the subject of a separate memorandum to the Council.

4. Compliance and administration

Does the Council have delegated authority to decide?	Yes
Are the decisions significant?	No
If they are significant do they affect land or a body of water?	No
Can this decision only be made through a 10 Year Plan?	No
Does this decision require consultation through the Special Consultative procedure?	No
Is there funding in the current Annual Plan for these actions?	Yes
Are the recommendations inconsistent with any of Council’s policies or plans?	No
The recommendations contribute to Goal 5: A Driven and Enabling Council
The recommendations contribute to the outcomes of the Driven and Enabling Council Strategy
This memorandum covers administrative matters to enable the smooth running of the Council

Attachments

Proposed Amendments to Delegations Manual ⇩

PALMERSTON NORTH CITY COUNCIL

Memorandum

TO: Council

MEETING DATE: 13 November 2019

TITLE: Proposed changes to foundation documents for Local Government Funding Agency (LGFA)

Presented By: Steve Paterson, Strategy Manager - Finance

APPROVED BY: Grant Elliott, Chief Financial Officer

RECOMMENDATION(S) TO Council

1. That Council support proposed changes to the structure of the Local Government Funding Agency (LGFA) that enable it to lend to CCOs; and

2. That the Chief Executive, and when necessary elected members, be delegated authority to execute any documents associated with the Council’s participation in LGFA.

1. ISSUE

The Local Government Funding Agency (LGFA) is seeking shareholder approval to proposed changes to a number its foundation documents. This approval is being sought at the forthcoming Annual General Meeting on 21 November 2019.

This memo seeks approval for the Council to support the changes and give delegated authority to execute documents associated with implementing them.

2. BACKGROUND

In June 2012 the Council passed a number of resolutions relating to the LGFA and in particular to authorise the Council becoming a shareholder and guarantor. The Chief Executive was delegated authority to execute any documents associated with the Council’s participation in LGFA.

A number of complex documents were executed as part of the process and the Council has subsequently been a shareholder, guarantor and borrower from what has become a very successful entity that now provides over 90% of New Zealand local governments funding needs and a shareholder equity of approximately $74 million at 30 June 2019.

In 2015 the Chief Executive’s delegation was relied upon to authorise the execution a number of documents that made changes to some of the foundation documents of LGFA so they were compliant with requirements of the then new Financial Markets Conduct Act. The changes at the time made no substantive change to the nature of the Council’s investment in LGFA or its borrowing practices.

LGFA needs to continuously evolve to meet changes in the operating environment and stakeholder demands.

In 2018 shareholders authorised LGFA to proceed to investigate a framework that would enable LGFA to lend directly to CCOs as at the present time it can lend only to Councils.

Attached is a brief summary of the proposed changes headed “Background Information and an update on CCO lending”.

The proposals have been reviewed on behalf of member Councils by the elected Shareholders’ Council and Simpson Grierson. The resulting advice from the Shareholders’ Council is that the proposals should be supported.

3. NEXT STEPS

Assuming the necessary proportion of shareholders support the proposed changes by resolution at the AGM then the various documents will be signed by all parties.

Some of the documents will be signed by the Chief Executive and other will be required to be signed by two elected members. Council’s delegations provide for such signing arrangements.

At the present time this Council’s only CCO that borrows to fund capital development is Palmerston North Airport Limited. It uses long established bank relationships to do this. The scale of their borrowing and the administrative processes and additional surveillance that would required means it is unlikely there would be sufficient overall benefits to warrant utilising them LGFA once this facility becomes available.

4. Compliance and administration

Does the Council have delegated authority to decide?		Yes
Are the decisions significant?		No
If they are significant do they affect land or a body of water?		No
Can this decision only be made through a 10 Year Plan?		No
Does this decision require consultation through the Special Consultative procedure?		No
Is there funding in the current Annual Plan for these actions?		Yes
Are the recommendations inconsistent with any of Council’s policies or plans?		No
The recommendations contribute to Goal 5: A Driven and Enabling Council
The recommendations contribute to the outcomes of the Driven and Enabling Council Strategy
The recommendations contribute to the achievement of action/actions in Not Applicable
Contribution to strategic direction	Not applicable

Attachments

Background information and update on CCO lending ⇩

Grant Smith (Mayor)
Tangi Utikere (Deputy Mayor)
Brent Barrett	Patrick Handcock ONZM
Susan Baty	Leonie Hapeta
Rachel Bowen	Lorna Johnson
Zulfiqar Butt	Billy Meehan
Vaughan Dennison	Karen Naylor
Renee Dingwall	Bruno Petrenas
Lew Findlay QSM	Aleisha Rutherford