Christchurch City Council

Supplementary Agenda no.2

 

 

Notice of Meeting:

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

 

Date:                                     Thursday 26 May 2016

Time:                                    9.30am

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

 

 

24 May 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

26 May 2016

 

 


Council

26 May 2016

 

TABLE OF CONTENTS

 

28..... Resolution to Include Supplementary Reports...................................................................... 4

32.     Elected Members' Remuneration from 1 July 2016............................................................... 5

33.     Councillors appointed to external organisations................................................................. 17

 


 

28 Resolution to Include Supplementary Reports

1.       Background

1.1          Approval is sought to submit the following reports to the Council meeting on 26 May 2016:

32.   Elected Members' Remuneration from 1 July 2016

33.   Councillors appointed to external organisations

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

That the reports be received and considered at the Council meeting on 26 May 2016.

  


Council

26 May 2016

 

 

32.    Elected Members' Remuneration from 1 July 2016

Reference:

16/468011

Contact:

Jo Daly

jo.daly@ccc.govt.nz

941 8581

 

 

1.   Purpose and Origin of Report

Purpose of Report

1.1       The purpose of this report is for the Council to consider the correspondence from the Remuneration Authority on the Mayor and Councillors’ Remuneration from 1 July 2016 and decide whether or not to put forward any proposal or additional duties payments for Council positions.

Origin of Report

1.2       This report is provided for the Council to consider and respond to the request from the Remuneration Authority dated 17 March 2016 regarding the Mayor and Councillors' Remuneration from 1 July 2016.

2.   Significance

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

2.1.1   The level of significance was determined by considering this matter with regard to the Significance and Engagement Policy.

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

 

3.   Staff Recommendations

That the Council:

1.         Receive the correspondence from the Remuneration Authority dated 17 March 2016 and request that staff provide the required information to the Remuneration Authority.

2.         Resolve to put forward the Deputy Mayor as a position of additional responsibility, to be rated as 1.1545 of the base Councillor rate (status quo).

 

 

4.   Key Points

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

4.1.1   Activity: Public Participation in Community and City Governance and Decision-making

·     Level of Service: 4.1.26 Provide direct administrative support for Deputy Mayor and Councillors

4.2       Under the Local Government Act 2002, the Remuneration Authority (the Authority) must determine the remuneration, allowances and expenses payable to mayors, councillors and community board members. 

4.3       At the beginning of each election year, the Authority sets the base councillor salary and the mayoral/chair remuneration for each council.  The base councillor salary and the mayoral remuneration is based on the council's size index, which is derived from population size and council expenditure. 

4.4       The Council received the attached correspondence from the Authority in March 2016 providing information about elected members' base remuneration for the period from 1 July 2016 to 30 June 2017. 

4.5       This letter provided the determination that the base remuneration for the Mayor and Councillors for the 2017/16 year will increase by 1.5%, with the proposed figures below:

Role

2015/16

2016/18

Mayor

$184,300

$187,065

Councillor

$99,200

$100,688

 

4.6       The Deputy Mayor at Christchurch City Council is currently recognised as a position of additional responsibility and is rated as 1.1545% of the Councillor rate.  It is considered that the Council wish to continue to recognise the position of Deputy Mayor in this way.  The current remuneration for the Deputy Mayor is $114,525, with this approach the remuneration for the 2016/17 year would be $116,242.

4.7       The recent Local Government Commission determination of representation arrangements from 8 October 2016 has resulted in changes to the representation of community boards and community board members.  The Remuneration Authority is working with Council staff regarding the determination on remuneration for community board members and this will be communicated as soon as practical.

 

5.   Context/Background

5.1       Under the Local Government Act, the Remuneration Authority sets the base remuneration for all elected members of local authorities including community boards. It also sets allowances and expenses. In undertaking its duties, the Authority is obliged to have regard to the need to minimise potential for behaviour distortion, maintain fair relativity with other levels of remuneration elsewhere, be fair to both elected members and ratepayers, and attract and retain competent persons.

5.2       In 2012 the Council issued a report "Remuneration setting proposals for local authorities:  2013 and beyond".  Since 2013 the Remuneration Authority has commissioned reviews to establish the size and changing nature of local representation.  A new review of remuneration framework is being undertaken over the coming year and as proposals develop the Authority will engage further with local government. 

5.3       For the 2016/17 year the Authority has decided to implement increases of between 1.5% and 3% phased in bands, with the larger metropolitan areas, including Christchurch City, receiving 1.5%.

5.4       The Authority has decided to increase the amount available to supplement base remuneration from 150% of the councillor remuneration to 200%.  Therefore the maximum amount available for Christchurch City Council for this purpose is $201,376.

5.5       The Authority has not amended the maximum amount of additional duty payments available or community boards, which remains at 30%. 

5.6       The Authority is not making any changes to the provisions for payment for elected members participating in district or regional planning hearing processes in the current year's determination, but have agreed to set up with Local Government New Zealand to set up a working party to find a solution that will be permitted under the legislation.  It is anticipated that the Authority's 2017/18 determination will address this matter.

5.7       The Authority has provided four forms for completion.  The first two are compulsory, the other two are for use where relevant.  Forms are listed below with commentary on the information to be provided.

·   The Mayor's vehicle information form.  Mayor Dalziel does not have a vehicle.

·   Form A - schedule of proposed positions and remuneration.  Mayor, Deputy Mayor and Councillor positions. 

·   Form B - information required for each position for additional payment.  The position of Deputy Mayor.

·   Form C - Additional duties payment for a community board.  Determination information for Community Board members is not confirmed.

6.   Elected Member Remuneration

Significance

6.1       The level of significance of this matter is low consistent with section 2 of this report.  Engagement is not required for this matter.

Impact on Mana Whenua

6.2       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

6.3       The community is not specifically affected by this determination.

Alignment with Council Plans and Policies

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

Financial Implications

6.5       The increased Elected Member remuneration is allowed for in the Annual Plan.

Legal Implications

6.6       Under the Local Government Act 2002, the Remuneration Authority (the Authority) must determine the remuneration, allowances and expenses payable to mayors, councillors and community board members. 

 

 

Attachments

No.

Title

Page

a  

Remuneration Authority - Elected Members Remuneration from 1 July 2016

9

 

 

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

Author

Jo Daly

Council Secretary

Approved By

Jason Rivett

Jenny Hughey

Mary Richardson

Finance Business Partner

Head of Community Support, Governance & Partnerships

General Manager Customer & Community

  


Council

26 May 2016

 

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Council

26 May 2016

 

 

33.    Councillors appointed to external organisations

Reference:

16/575077

Contact:

Ian Thomson

ian.thomson@ccc.govt.nz

941 6469

 

 

1.   Purpose of Report

1.1       The purpose of this report is to enable the Council to consider the remuneration of Councillor directors and trustees appointed in their capacity as elected members to external organisations.

 

2.   Staff Recommendations

That the Council:

1.         Considers the information contained in this report;

2.         Considers whether or not to resolve that any fees payable to Councillor directors and trustees appointed in their capacity as elected members to external organisations are instead donated to the Mayor's Welfare Fund, to any other charitable organisation chosen by the Councillor concerned, or to an internal Council purpose which benefits the community;

3.         If so, directs the Chief Executive to take all necessary steps required to implement the decision in 2. above;

4.         Considers whether or not to resolve that staff be requested to develop a Council policy on the remuneration of Councillors appointed to external organisations either as a stand-alone policy or as part of a review of the existing policy for the appointment and remuneration of directors.

5.         In the interim allow Councillor directors and trustees to direct any outstanding fees for the remainder of the term to a charity of their choice.

 

 

3.   Key Points

3.1       At its meeting on 28 November 2013 the Council resolved that the directors fees payable to Councillors appointed as directors of Canterbury Development Corporation Holdings Ltd and Christchurch City Holdings Ltd were to be paid directly to the Mayor's Welfare Fund.

3.2       Since then there has been some discussion about whether or not the resolution, or the intent behind it, applies to fees payable to Councillors appointed to other external organisations.  It appears that most, but not all, Councillor-appointees have taken the view they do, and have donated their fees.

3.3       In this report, any reference to "Councillor/s" or "elected member/s" includes the Mayor.

3.4       The remuneration, allowances and expenses payable to Councillors is set by the Remuneration Authority, with one of the criteria being to be fair to both elected members and ratepayers.  The Authority may determine allowances in addition to salaries for attending meetings but this doesn't include meetings of external organisations.

3.5       The Authority will differentiate between persons occupying equivalent positions in different local authorities.  The remuneration determined by the Authority for people elected to Councils such as Christchurch City recognises the wider responsibilities that those Councillors will have in a district of this size.

3.6       The appointment of Councillors as directors or trustees of external organisations could therefore be seen as being just one of the many tasks they are expected to undertake in carrying out their roles as elected members, and for which they have already been paid.

3.7       On the other hand, the duties imposed on directors of Council Organisations such as Christchurch City Holdings Ltd, or Canterbury Development Corporation Ltd, can be quite different to those of an elected member. The additional commitment required of Councillors should perhaps be recognised in their being paid reasonable fees for particular services rendered.

3.8       Currently the external organisations determine whether or not Councillors appointed to their governing bodies are to be paid and by how much.  The issue for the Council is to agree on how such payments are to be treated.

3.9       One option is for the Council to direct the organisations to remove any provision for the payment of fees to Councillors appointed as directors or trustees.  Another is to require the organisations to pay an equivalent amount to, say, the Mayor's Welfare Fund, to any other charitable organisation chosen by the Councillor concerned, or to an internal council purpose which benefits the community.

3.10    A relevant point to consider is that although a proposed resolution may have the support of only a majority of Councillors present and voting at a meeting, any decisions made are decisions of the Council as a whole.  Once made, the Chief Executive is responsible for implementing those decisions in an effective and timely fashion.

3.11    It is possible that not all Councillors will support a decision requiring them to relinquish their individual control over fees they may otherwise be entitled to.  However, all Councillors are bound by the decision regardless of whether or not they were in favour of it.

3.12    This is referred to in clause 45 of the Council's Code of Conduct, which states that "once a matter has been decided at a meeting of the Council, that decision establishes the Council's position on the matter until it is lawfully changed by a subsequent decision of the Council".

3.13    It is suggested the development of a Council policy might bring clarity and consistency to how the fees issue is dealt with and could provide a platform for deciding how Councillors were to be remunerated when appointed to the governing bodies of external organisations.  A condition of appointment could be compliance with the provisions of the policy.

3.14    Once in place, the policy might be that any appointment is deemed to be sufficiently remunerated by the remuneration, allowances, and expenses payable to Councillors, as determined by the Remuneration Authority.  Councillors would need to address any personal tax issues that may arise.

3.15    Staff are happy to develop such a policy for the Council's approval, either as a stand-alone document or as part of a review of the existing policy for the appointment and remuneration directors. 

 

Attachments

There are no attachments to this report.

 

Signatories

Author

Ian  Thomson

Senior Legal Advisor - Governance

Approved By

Karleen Edwards

Chief Executive