Christchurch City Council

Supplementary Agenda No.2

 

 

Notice of Meeting:

An ordinary meeting of the Christchurch City Council will be held on:

 

Date:                                     Thursday 24 March 2016

Time:                                    8.30am

Venue:                                 Council Chambers, Civic Offices,
53 Hereford Street, Christchurch

 

 

Membership

Chairperson

Deputy Chairperson

Members

Mayor Lianne Dalziel

Deputy Mayor Vicki Buck

Councillor Jimmy Chen

Councillor Phil Clearwater

Councillor Pauline Cotter

Councillor David East

Councillor Jamie Gough

Councillor Yani Johanson

Councillor Ali Jones

Councillor Paul Lonsdale

Councillor Glenn Livingstone

Councillor Raf Manji

Councillor Tim Scandrett

Councillor Andrew Turner

 

 

23 March 2016

 

 

 

Principal Advisor

Dr Karleen Edwards

Chief Executive

Tel: 941 8554

 

Jo Daly

Council Secretary

941 8581

Jo.Daly@ccc.govt.nz

www.ccc.govt.nz

Note:  The reports contained within this agenda are for consideration and should not be construed as Council policy unless and until adopted.  If you require further information relating to any reports, please contact the person named on the report.
Watch Council meetings live on the web:
http://councillive.ccc.govt.nz/live-stream

 


Council

24 March 2016

 

 


Council

24 March 2016

 

TABLE OF CONTENTS

 

25..... Resolution to Include Supplementary Reports...................................................................... 5 

29.     Disestablishment of the Housing Management Board ......................................................... 7  


 


 

25 Resolution to Include Supplementary Reports

1.       Background

1.1          Approval is sought to submit the following reports to the Council meeting on 24 March 2016:

29.   Disestablishment of the Housing Management Board

1.2          The reason, in terms of section 46A(7) of the Local Government Official Information and Meetings Act 1987, why the reports were not included on the main agenda is that they were not available at the time the agenda was prepared.

1.3          It is appropriate that the Council receive the reports at the current meeting.

2.       Recommendation

2.1          That the reports be received and considered at the Council meeting on 24 March 2016.

 

 


Council

24 March 2016

 

 

29.    Disestablishment of the Housing Management Board

Reference:

16/285854

Contact:

Nicole Randall

Nicole.randall@ccc.govt.nz

941 8859

 

 

1.   Purpose and Origin of Report

Purpose of Report

1.1       The purpose of this report is for the Council to approve the disestablishment of the Housing Management Board.

Origin of Report

1.2       This report is being provided to fulfil the Council's resolution of 25 February 2016 that the Housing Management Board Chairperson's Report-Appointment of new Councillors lie on the table to be considered at the Council meeting of 10 March 2016.

2.   Significance

2.1       The decision in this report is of low significance in relation to the Christchurch City Council’s Significance and Engagement Policy.

2.1.1   The level of significance was determined as the decision does not materially alter the decision-making arrangements concerning the establishment of the Community Housing Provider (Otautahi Community Housing Trust).

2.1.2   The community engagement and consultation outlined in this report reflect the assessment.

 

3.   Staff Recommendations

That the Council:

1.            Approve the disestablishment of the Housing Management Board effective from the date of this resolution.

2.            Approve that the decisions remaining to be made concerning the establishment of the Otautahi Community Housing Trust are made by the Council following consideration and recommendation from the Strategy & Finance Committee.

 

 

 

4.   Key Points

4.1       This report supports the Council's Long Term Plan (2015 - 2025):

4.1.1   Activity: Housing

·     Level of Service: 18.0.10 Establish a Housing Management Board that will establish, manage and operate collaboratively with new Housing Entities on the establishment of the Community Housing Provider (Otautahi Community Housing Trust) to the Council is not materially different from that.  In addition, the proposal recommended by this report is justified in terms of managing the potential for conflicts arising between the members of the Housing Management Board and the board of the Otautahi Community Housing Trust.

4.2       The following feasible options have been considered:

·     Option 1 - Disestablish the Housing Management Board and transfer its delegated responsibilities to the Council subject to the recommendation of the Strategy & Finance Committee (preferred option).

·     Option 2 - Disestablish the Housing Management Board and transfer its delegated responsibilities to the Council subject to the recommendation of the Communities, Housing and Economic Development Committee.

·     Option 3 - The Deputy Mayor, Councillor Lonsdale and Councillor Turner step down from the Housing Management Board and are replaced with three other Councillors who are not trustees of the Otautahi Community Housing Trust.

·     Option 4 - Appoint two additional Councillors, Councillors Cotter and Scandrett, to the Housing Management Board.

4.3       Option Summary - Advantages and Disadvantages (Preferred Option - Option 1)

4.3.1   The advantages of this option include:

·     It minimises any potential conflicts of interest that could arise for the three Councillors who are both members of the Housing Management Board and trustees on the Otautahi Community Housing Trust.

·     The Strategy and Finance Committee will keep Council informed of progress on the establishment of the Otautahi Community Housing Trust.

·     As the remaining matters concerning the establishment of the Otautahi Community Housing Trust are critical to the future of the Housing Fund and the Council's relationship with the Otautahi Community Housing Trust, the transfer of responsibilities to the Council on the recommendation of the Strategy & Finance Committee aligns well with the Committee's wider financial responsibilities.

4.3.2   The disadvantages of this option include:

·     The Strategy and Finance Committee's meeting schedule is less flexible than that of the Housing Management Board.  Some decisions may need to be made outside the Committee's regular meeting time.  This could be addressed via the calling of extraordinary meetings as necessary.

 

5.   Context/Background

Origin of this report

5.1       On 25 February 2016 Council considered the Housing Management Board Chairperson's Report - Appointment of New Councillors.   This report, Attachment A, sought Council approval to appoint two additional Councillors, Councillors Cotter and Scandrett to join the current four members - the Deputy Mayor and Councillors Livingstone, Lonsdale, and Turner on the Housing Management Board.  

5.2       The appointment of two additional Councillors to the Housing Management Board was sought to manage any potential conflict of interest that may arise from the appointment of the Deputy Mayor and Councillors Lonsdale and Turner as trustees of the Otautahi Community Housing Trust.

5.3       Council requested a further report on all options for managing potential conflicts of interest, including the disestablishment of the Housing Management Board.  

Housing Management Board

5.4       In December 2014 the Council set up the Housing Management Board to produce an operating model for the Community Housing Provider (CHP) and to seek, via the preparation and issue of a Request for Proposals (RFP) people and/or organisations interested in taking up the majority of shares in the CHP.

5.5       On 12 March 2015 the Council agreed to the Board's Terms of Reference, Attachment B, and the appointment of four elected members - the Deputy Mayor (Chair) and Councillors Turner, Lonsdale and Livingstone.

5.6       Since its inception the Housing Management Board met regularly until October 2015 preparing and issuing the RFP, securing CHP partners, reviewing financial strategy and preparing a draft lease and trust deed.

5.7       At its meeting on 7 October 2015 the Housing Management Board resolved to appoint three Councillors, Andrew Turner, Paul Lonsdale and Vicki Buck as trustees of the CHP.

5.8       On 19 February 2016 the three Council trustees signed the trust deed forming the Otautahi Community Housing Trust, together with the trust's four independent trustees, Pam Sharpe, Alex Skinner (Chair), Stephen Phillips and Lloyd Mander. 

5.9       Many of the tasks delegated to the Board have been completed.   The most important tasks remaining are finalising the lease and working with the Trust and the Ministry of Business, Innovation and Employment to ensure the Trust becomes a registered CHP, and working with the Trust and the Ministry for Social Development to the Trust to access the Income Related Rent Subsidy scheme. 

5.10    The appointment of the three Council trustees could potentially result in a conflict of interest on some issues remaining for consideration by the Housing Management Board.  This includes the finalisation of the lease of Council's social housing to the Trust. 

5.11    The options outlined below address the potential conflict of interest arising from the appointment of the three Councillors as trustees of the Otautahi Community Housing Trust.

6.   Option 1 - Disestablishment of the Housing Management Board - Decision-making by Council on recommendation from Strategy & Finance Committee (preferred)

Option Description

6.1       Under this option the Housing Management Board is disestablished and its responsibilities are transferred to the Council, with recommendations received from the Strategy & Finance Committee.

6.2       Membership of the Strategy & Finance includes the Deputy Mayor and Councillor Turner, however neither is chair of that Committee and together they make up a minority of the Committee membership.

6.3       Strategy and Finance will make recommendations to Council on decisions required for the establishment of the Trust.  It is proposed that when Strategy and Finance is to make a recommendation to Council on a decision that gives rise to a conflict of interest for the Deputy Mayor and Councillor Turner as trustees of the Otautahi Community Housing Trust that they do not vote on these decisions. 

6.4       Strategy and Finance will report regularly to Council on the progress of establishing the Trust as a registered CHP. This will include updates on:

6.4.1   Negotiation of the lease of City Housing's portfolio to the Trust.

6.4.2   Registration of the Trust as a CHP with the Ministry of Business, Innovation and Employment.

6.4.3   The Trust obtaining an Income Related Rent Subsidy contract with MSD.

Significance

6.5       The level of significance of this option is low consistent with section 2 of this report.

Impact on Mana Whenua

6.6       This option does not involve a significant decision in relation to ancestral land or a body of water or other elements of intrinsic value, therefore this decision does not specifically impact Ngāi Tahu, their culture and traditions.

Community Views and Preferences

6.7       No members of the community are specifically affected by this option.

Alignment with Council Plans and Policies

6.8       This option is inconsistent with Council’s Plans and Policies insofar as the LTP contemplates the establishment of the Housing Management Board.  Whilst the report recommends the disestablishment of the Housing Management Board, the proposal to return decision-making on the establishment of the Community Housing Provider (Otautahi Community Housing Trust) to the Council is not materially different from that.  In addition, the proposal recommended by this report is justified in terms of best managing the potential for conflicts of interest arising between the members of the Housing Management Board and the trustees of the Otautahi Community Housing Trust.

Financial Implications

6.9       Cost of Implementation - not applicable.

6.10    Maintenance / Ongoing Costs - not applicable.

6.11    Funding source - not applicable.

Legal Implications

6.12    The potential for conflicts of interest would be managed at the Strategy and Finance committee as outlined at 6.3.

Risks and Mitigations

6.13    There is a risk that Strategy & Finance's meeting schedule will not suit the timing of decisions that need to be made.   Extraordinary meetings may need to be called to enable recommendations to be made to Council in a timely manner.

Implementation

6.14    Implementation dependencies - not applicable.

6.15    Implementation timeframe - Strategy & Finance will assume responsibility for establishing the CHP from the date of this decision.

Option Summary - Advantages and Disadvantages

6.16    The advantages of this option include:

·   Any potential conflicts of interest that arises would be minimised and managed.

·   Council would be kept informed of progress.

·   As the remaining matters concerning the establishment of the Otautahi Community Housing Trust are critical to the future of the Housing Fund and the Council's relationship with the Otautahi Community Housing Trust, the transfer of responsibilities to the Council on the recommendation of the Strategy & Finance Committee aligns well with the Committee's wider financial responsibilities.

6.17    The disadvantages of this option include:

·   Strategy & Finance's meeting schedule is less flexible than the Housing Management Board.  Some matters may need consideration outside Strategy & Finance's regular meeting time.  This will be addressed via the calling of extraordinary meetings as necessary.

7.   Option 2 - Disestablishment of the Housing Management Board - Decision-making by Council on recommendation from CHED Committee

Option Description

7.1       Under this option the Housing Management Board is disestablished and its responsibilities are transferred to the Council, with recommendations received from the Communities, Housing and Economic Development Committee (CHED).

7.2       CHED includes the three Council trustees on the Otautahi Community Housing Trust.  Councillor Andrew Turner, one of the Councillor trustees, is also the Chair of CHED.

7.3       CHED would make recommendations to Council on decisions required for the establishment of the Trust.  If this option was adopted by the Council it would, in the event that a conflict of interest for the three councillor trustees of the Trust arose, be necessary for the following to occur:

7.3.1   Councillor Turner would need to vacate the CHED Chair during these discussions, and 

7.3.2   The three Council trustees who are members of CHED would need to not vote on those decisions.

7.4       For the reasons set out in paragraph 7.3, this option is not preferred.

7.5       CHED would report regularly to Council on the progress of establishing the Trust as a registered CHP. This will include updates on:

7.5.1   Negotiation of the lease of City Housing's portfolio to the Trust.

7.5.2   Registration of the Trust as a CHP with the Ministry of Business, Innovation and Employment.

7.5.3   The Trust obtaining an Income Related Rent Subsidy contract with MSD.

Significance

7.6       The level of significance of this option is low consistent with section 2 of this report.

Impact on Mana Whenua

7.7       This option does not involve a significant decision in relation to ancestral land or a body of water or other elements of intrinsic value, therefore this decision does not specifically impact Ngāi Tahu, their culture and traditions.

Community Views and Preferences

7.8       No members of the community are specifically affected by this option.

Alignment with Council Plans and Policies

7.9       This option is inconsistent with Council’s Plans and Policies insofar as the LTP contemplates the establishment of the Housing Management Board.  Whilst the report recommends the disestablishment of the Housing Management Board, the proposal to return decision-making on the establishment of the Community Housing Provider (Otautahi Community Housing Trust) to the Council is not materially different from that.  In addition, the proposal recommended by this report is justified in terms of best managing the potential for conflicts of interest arising between the members of the Housing Management Board and the trustees of the Otautahi Community Housing Trust.

Financial Implications

7.10    Cost of Implementation - not applicable.

7.11    Maintenance / Ongoing Costs - not applicable.

7.12    Funding source - not applicable.

Legal Implications

7.13    The potential conflict of interest would remain and would need to be carefully be managed at the CHED committee as outlined at 7.3.

Risks and Mitigations

7.14    There is a risk that CHED's meeting schedule will not suit the timing of decisions that need to be made.   Extraordinary meetings may need to be called to enable recommendations to be made to Council in a timely manner.

Implementation

7.15    Implementation dependencies - not applicable.

7.16    Implementation timeframe - CHED will assume responsibility for establishing the CHP from the date of this decision.

Option Summary - Advantages and Disadvantages

7.17    The advantages of this option include:

·   Any conflict of interest that arises could possibly be managed.

·   Council would be kept informed of progress.

·   As the remaining matters concerning the establishment of the Community Housing Provider are critical to the future of the Housing Fund, transfer of responsibilities to CHED aligns well with CHED's wider housing responsibilities.

7.18    The disadvantages of this option include:

·   Potential conflicts of interest would be more difficult to manage given that three members of CHED are trustees of the Otautahi Community Housing Trust and that of those three trustees Councillor Turner is the chair of CHED.

·   CHED's meeting schedule is less flexible than the Housing Management Board.  Some matters may need consideration outside CHED's regular meeting time.  This will be addressed via the calling of extraordinary meetings as necessary.

8.   Option 3 - Replacement of Councillor Trustees on Housing Management Board

Option Description

8.1       The Deputy Mayor, Councillor Lonsdale and Councillor Turner step down from the Housing Management Board and are replaced with three other Councillors appointed to the Housing Management Board.

8.2       The Housing Management Board continues to oversee the establishment of the CHP and reports regularly to the Council.

8.3       The three replacement Councillors are to be nominated and agreed by Council.

Significance

8.4       The level of significance of this option is low consistent with section 2 of this report.

Impact on Mana Whenua

8.5       This option does not involve a significant decision in relation to ancestral land or a body of water or other elements of intrinsic value, therefore this decision does not specifically impact Ngāi Tahu, their culture and traditions.

Community Views and Preferences

8.6       No members of the community are specifically affected by this option.

Alignment with Council Plans and Policies

8.7       This option is consistent with Council’s Plans and Policies

Financial Implications

8.8       Cost of Implementation - not applicable

8.9       Maintenance / Ongoing Costs - not applicable

8.10    Funding source - not applicable

Legal Implications

8.11    The potential conflict of interest is addressed by the replacement of the three Council trustees. 

Risks and Mitigations

8.12    Not applicable.

Implementation

8.13    Implementation dependencies  - not applicable

8.14    Implementation timeframe - this approach will apply from the date of this decision.

Option Summary - Advantages and Disadvantages

8.15    The advantages of this option include:

·   The Housing Management Board continues with its decision-making responsibilities. 

8.16    The disadvantages of this option include:  Not applicable.

9.   Option 4 - Appointing Two Additional Councillors to Housing Management Board

Option Description

9.1       Under this option two additional Councillors, Councillors Cotter and Scandrett, are appointed and join the current four members - the Deputy Mayor and Councillors Turner, Lonsdale and Livingstone.

9.2       Should a conflict of interest arise, the three Council trustees will stand aside.

9.3       As a quorum for the Housing Management Board is three, the remaining Board members, Councillors Livingstone, Cotter and Scandrett, will be able to act as the Housing Management Board in the Council's interests. 

Significance

9.4       The level of significance of this option is low consistent with section 2 of this report.  .

Impact on Mana Whenua

9.5       This option does not involve a significant decision in relation to ancestral land or a body of water or other elements of intrinsic value, therefore this decision does not specifically impact Ngāi Tahu, their culture and traditions.

Community Views and Preferences

9.6       No community members are specifically affected by this option.

Alignment with Council Plans and Policies

9.7       This option is consistent with Council’s Plans and Policies.

Financial Implications

9.8       Cost of Implementation - not applicable

9.9       Maintenance / Ongoing Costs - not applicable

9.10    Funding source - not applicable

Legal Implications

9.11    The potential conflict of interest remains, however it could be addressed as outlined at 9.2 and 9.3.

Risks and Mitigations

9.12    There is a risk that a perception of a conflict of interest could remain as the Councillor trustees remain members of the Housing Management Board.

Implementation

9.13    Implementation dependencies - not applicable.

9.14    Implementation timeframe - not applicable.

Option Summary - Advantages and Disadvantages

9.15    The advantages of this option include:

·   The Housing Management Board continues with its decision-making responsibilities. 

9.16    The disadvantages of this option include that the avoidance of potential conflicts of interest would require some attention and care to manage successfully.

 

 

Attachments

No.

Title

Page

a  

Housing Management Board Chairpersons's Report - Appointment of New Councillors

16

b  

Housing Management Board Terms of Reference

18

 

 

Confirmation of Statutory Compliance

Compliance with Statutory Decision-making Requirements (ss 76 - 81 Local Government Act 2002).

(a) This report contains:

(i)  sufficient information about all reasonably practicable options identified and assessed in terms of their advantages and disadvantages; and

(ii) adequate consideration of the views and preferences of affected and interested persons bearing in mind any proposed or previous community engagement.

(b) The information reflects the level of significance of the matters covered by the report, as determined in accordance with the Council's significance and engagement policy.

 

Signatories

Authors

Nicole Randall

Robert O'Connor

Principal Advisor

Senior Solicitor

Approved By

Carolyn Gallagher

David Adamson

Head of Housing

General Manager City Services

  


Council

24 March 2016

 

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Council

24 March 2016

 

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