AGENDA
Emergency Council Meeting
Friday, 21 August 2020

I hereby give notice that an Emergency Meeting of Council will be held
on:
Date: Friday, 21 August 2020
Time: 9.30am
Location: Tauranga City Council
Council Chambers
91 Willow Street
Tauranga
Please note that this meeting will be livestreamed and the recording will be publicly available on
Tauranga City Council's website: www.tauranga.govt.nz.

Marty Grenfell
Chief Executive

 Terms of reference – Council

Membership
Chairperson

Mayor Tenby Powell

Deputy chairperson

Cr Tina Salisbury

Members

Cr Jako Abrie
Cr Larry Baldock
Cr Kelvin Clout
Cr Bill Grainger
Cr Andrew Hollis
Cr Heidi Hughes
Cr Dawn Kiddie
Cr Steve Morris
Cr John Robson

Quorum

Half of the members physically present, where the number of
members (including vacancies) is even; and a majority of the
members physically present, where the number of members
(including vacancies) is odd.

Meeting frequency

Six weekly or as required for Annual Plan, Long Term Plan
and other relevant legislative requirements.

Role
•
•

To ensure the effective and efficient governance of the City
To enable leadership of the City including advocacy and facilitation on behalf of the community.

Scope
•
•
•

•
•
•

Oversee the work of all committees and subcommittees.
Exercise all non-delegable and non-delegated functions and powers of the Council.
The powers Council is legally prohibited from delegating include:
o Power to make a rate.
o Power to make a bylaw.
o Power to borrow money, or purchase or dispose of assets, other than in accordance with
the long-term plan.
o Power to adopt a long-term plan, annual plan, or annual report
o Power to appoint a chief executive.
o 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.
o All final decisions required to be made by resolution of the territorial authority/Council
pursuant to relevant legislation (for example: the approval of the City Plan or City Plan
changes as per section 34A Resource Management Act 1991).
Council has chosen not to delegate the following:
o Power to compulsorily acquire land under the Public Works Act 1981.
Make those decisions which are required by legislation to be made by resolution of the local
authority.
Authorise all expenditure not delegated to officers, Committees or other subordinate decisionmaking bodies of Council.

 •
•

Make appointments of members to the CCO Boards of Directors/Trustees and representatives
of Council to external organisations.
Consider any matters referred from any of the Standing or Special Committees, Joint
Committees, Chief Executive or General Managers.

Procedural matters
•
•
•
•
•
•

Delegation of Council powers to Council’s committees and other subordinate decision-making
bodies.
Adoption of Standing Orders.
Receipt of Joint Committee minutes.
Approval of Special Orders.
Employment of Chief Executive.
Other Delegations of Council’s powers, duties and responsibilities.

Regulatory matters
Administration, monitoring and enforcement of all regulatory matters that have not otherwise been
delegated or that are referred to Council for determination (by a committee, subordinate decisionmaking body, Chief Executive or relevant General Manager).

 Emergency Council Meeting Agenda

21 August 2020

Order Of Business
1

Apologies ............................................................................................................................. 7

2

Acceptance of Late Items .................................................................................................... 7

3

Confidential Business to be Transferred into the Open.................................................... 7

4

Change to the Order of Business ....................................................................................... 7

5

Declaration of Conflicts of Interest ..................................................................................... 7

6

Business............................................................................................................................... 8
6.1

7

Governance Issues and Forward Plan...................................................................... 8

Discussion of Late Items ................................................................................................... 17

Page 5

 Emergency Council Meeting Agenda

21 August 2020

1

APOLOGIES

2

ACCEPTANCE OF LATE ITEMS

3

CONFIDENTIAL BUSINESS TO BE TRANSFERRED INTO THE OPEN

4

CHANGE TO THE ORDER OF BUSINESS

5

DECLARATION OF CONFLICTS OF INTEREST

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 Emergency Council Meeting Agenda

6

BUSINESS

6.1

Governance Issues and Forward Plan

File Number:

A11698185

Author:

Christine Jones, General Manager: Strategy & Growth

Authoriser:

Marty Grenfell, Chief Executive

21 August 2020

PURPOSE OF THE REPORT
1.

To formally report to Council correspondence received from the Department of Internal
Affairs relating to Elected Members’ performance and seek direction on the way forward.

RECOMMENDATIONS
That the Council:
(a)

Receives report “Governance Issues and Forward Plan”.

(b)

Agrees that Council initiated action to address the issue of Elected Member
relationships is the most appropriate pathway.

(c)

Agrees that the action will be a Council appointed Review and Observer Team.

(d)

Requests the Chief Executive report back to Council as soon as practicable with draft
Terms of Reference, recommended appointees, cost estimate and budget approval
request.

BACKGROUND
2.

Recent events involving Elected Members have led to a high degree of media attention being
focused on the Council, including the release of a significant volume of correspondence
between members into the public realm following requests under the Local Government
Official Information and Meetings Act 1987 (LGOIMA). This correspondence contained items
that might generally be considered divisive and reflect adversely on both the authors and the
persons who were the subject matter of some of the comments it contained.

3.

This information, together with earlier media reports of tensions within the elected
membership, is damaging to public confidence in Council. Equally importantly, it is
acknowledged that those tensions are real, and are inhibiting the ability of Elected Members
to act cooperatively, and the ability to focus on important issues, including decisions leading
to the 2021/2031 Long-term Plan (LTP). Critical proposals relating to the LTP that affect the
future of the city must be considered in the coming months and community consultation must
occur ahead of the adoption of that Plan midway through next year.

4.

This report has been prepared to enable Council to consider this matter. It has been
prepared by Council staff with input by Council’s legal advisor Linda O’Reilly of Brookfields
and in discussion with the Department of Internal Affairs (DIA).

DEPARTMENT OF INTERNAL AFFAIRS
5.

These matters have recently come to the attention of the Department of Internal Affairs
(DIA), and doubtless have been noted by the Minister for Local Government. On 13 August
2020 the Chief Executive received a letter from the Director Ministerial Advice, Monitoring
and Operations, DIA, referring to “concerns raised through recent media articles and
correspondence received by us regarding significant conflict among elected representatives”
(Attachment 1). The letter was circulated to Elected Members on 14 August 2020.

6.

The letter seeks further information from Council and requires “assurance and evidence” of
the Council’s proactive steps to “restore trust and confidence in its ability to meet the Crown’s
expectations of a high-performing Council”. Although not stated to be a Ministerial request

Item 6.1

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 Emergency Council Meeting Agenda

21 August 2020

for information pursuant to Part 10 (Ministerial powers of assistance and intervention) of the
Local Government Act 2002 (LGA), it may be regarded as such.
7.

The letter from DIA specifically requests:
•

An independent evaluation of the current standard of governance performance by
Elected Members against the expectations set out in the Code of Conduct;

•

A summary of the key issues that Elected Members agree are impacting the Council’s
performance;

•

A clear plan on how the Council will address the issues, including a timeline and
framework for how success will be measured;

•

A summary of key decisions that the Council needs to make through to 30 June 2021 to
deliver the 2021-2031 Long Term Plan and SmartGrowth objectives.

CONSIDERATIONS IN DETERMINING PATHWAY FORWARD
8.

It is appropriate for Council to consider the matters raised in the letter from DIA, particularly
the framework pursuant to Part 10 of the LGA which would potentially be applicable.

9.

Part 10 of the LGA provides the Minister with a range of options in relation to a local authority
that has a problem. The options vary according to the nature and scale of assistance
required to address the problem. The LGA defines a problem as “a matter or circumstance
relating to the management or governance of the local authority that detracts from, or is likely
to detract from, its ability to give effect to the purpose of local government within its district or
region”, and includes “a potential problem”.1

10.

The options available to the Minister under the LGA are:

11.

12.

(a)

Requiring of information where the Local Authority has not publicly acknowledged the
nature and extent of the problem or may be unable or unwilling to effectively address
the problem.

(b)

Appoint a Crown Review Team with power to investigate, review and recommend to
the Minister.

(c)

Appoint a Crown Observer with power to assist, monitor, and recommend to the
Minister.

(d)

Appoint a Crown Manager with power to direct the local authority to act and
recommend to the Minister.

(e)

Appoint a Commission (where a Crown Review Team, Crown Observer or Crown
Manager is unlikely to address this issue).

The Minister may appoint a Crown Review Team if:
(a)

the local authority has received a notice from the Minister under section 257(1) and, for
no good reason, has not provided the information required by the notice by the stated
or agreed date; or

(b)

the Minister believes, on reasonable grounds, that a significant problem relating to the
local authority may exist and the local authority is unable or unwilling to effectively
address the problem; or

(c)

the Minister has received a written request from the local authority to do so.

The Minister may appoint a Crown Observer to a local authority if:
(a)

1

the Minister believes, on reasonable grounds, that a significant problem relating to the
local authority exists and:

Local Government Act section 256(a)

Item 6.1

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 Emergency Council Meeting Agenda

(b)

13.

(i)

the appointment of a Crown Observer is necessary to enable, or better enable,
the local authority to effectively address the problem; or

(ii)

the appointment of a Crown Observer is necessary to enable, or better enable,
the Minister to monitor the local authority’s progress in addressing the problem;
or

(iii)

a Ministerial body currently or previously appointed to the local authority has
recommended the appointment; or

The Minister has received a written request from the local authority to do so.

The Minister may appoint a Crown Manager if:
(a)

(b)
14.

the Minister believes, on reasonable grounds, that a significant problem relating to the
local authority exists, and:
(i)

the nature or extent of the problem is such that the local authority is unlikely to
effectively address the problem without the appointment of a Crown Manager; or

(ii)

for no good reason, the local authority has not adequately implemented a
recommendation of any other Ministerial body in relation to the problem; or

(iii)

a Ministerial body currently or previously appointed to the local authority has
recommended the appointment; or

the Minister has received a written request from the local authority to do so.

The Minister may appoint a Commission to a local authority if:
(a)

the Minister believes, on reasonable grounds, that:
(i)

15.

21 August 2020

a significant problem relating to the local authority is:
•

impairing, or likely to impair, the good local government of the local
authority’s district or region; or

•

endangering, or likely to endanger, the public health or safety of the people
within the local authority’s district or region; and

(ii)

the local authority is unable or unwilling to effectively address the problem; and

(iii)

the problem is such that appointing a Crown Review Team, a Crown Observer, or
a Crown Manager to the local authority is unlikely to prevent the consequences
described in subparagraph (i); or

(b)

the local authority refuses or is unable to comply with a direction of a Crown Manager;
or

(c)

the Minister believes, on reasonable grounds, that a significant problem relating to the
local authority exists and a Ministerial body currently or previously appointed to the
local authority has recommended the appointment; or

(d)

the Minister has received a written request from the local authority to do so.

There are some differences in the roles of a Crown Review Team and a Crown Observer.
Pursuant to section 258(4) a Crown Review Team must:
(a)

investigate and report on the nature and extent of the problem; and

(b)

make recommendations to the local authority and the Minister on how the local
authority could address the problem; and

Item 6.1

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 Emergency Council Meeting Agenda

16.

17.

21 August 2020

(c)

make recommendations to the Minister on whether the Minister should take further
action in relation to the local authority, including whether the Minister should appoint
any other Ministerial body to the local authority; and

(d)

ensure, as far as practicable, that the existing organisational capability of the local
authority is not diminished.

A Crown Observer must:
(a)

assist the local authority to address the problem; and

(b)

monitor the local authority’s progress in relation to the problem; and

(c)

make recommendations to the Minister on whether the Minister should take further
action in relation to the local authority, including whether the Minister should appoint
any other Ministerial body to the local authority; and

(d)

ensure, as far as practicable, that the existing organisational capability of the local
authority is not diminished.

The Minister has Gazetted a “Notice Regarding Ministerial Powers of Local Government
Assistance and Intervention” pursuant to section 258O of the LGA. It states that in making
decisions under Part 10 of the LGA the Minister is to be informed by the purpose of local
government and the role of, and principles relating to, local authorities in Subparts 1 and 2 of
Part 2 of the LGA. The purpose of local government, as set out in section 10 of the LGA is
to:
(a)

Enable democratic local decision-making and action by, and on behalf of, communities;
and

(b)

Promote the social, economic, environmental, and cultural well-being of communities in
the present and for the future.

18.

In determining whether intervention is required the Minister is to have
circumstances that the Minister considers are likely to detract from the
to give effect to the purpose of local government. One of the matters
that purpose is “dysfunctional governance” including “failure or
relationships”2.

regard to matters or
ability of the Council
likely to detract from
breakdown of key

19.

Also relevant to Council’s consideration is whether there may be a negative impact on
Council’s relationship and standing with central government, including potentially
jeopardising post COVID funding arrangements.

PROBLEM STATEMENT
20.

The problem that the Council could address is that of dysfunctional governance arising from
the failure or breakdown of key relationships. Those key relationships include those between
the Mayor and councillors and between councillors or factions of councillors. There is
evidence, in terms of the recent events relating to the role of deputy mayor, that the
relationships between the Mayor and councillors, and between factions of councillors, are
dysfunctional. The willingness of certain Elected Members (including the Mayor) to work
cooperatively with each other has been demonstrated publicly to be strained.

21.

The relationship issues are evidenced by the communications between Elected Members
concerning the position of deputy mayor that were released to the media pursuant to a
LGOIMA request, and that demonstrate relationship stresses within that group. It is also
evidenced by the continued focus of the media on the performance of Elected Members
(most recently a request for details of elected member education on local government).

Source – Clause (b) of Gazette Notice Regarding Ministerial Powers of Local Government Assistance and
Intervention
2

Item 6.1

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 Emergency Council Meeting Agenda

21 August 2020

22.

The Elected Member relationship issues are mainly manifesting in forums outside the council
chambers, with the formal decision-making processes of Council not significantly impacted at
this stage.

23.

While the Elected Member relationship issues impact on the efficiency of the Executive
Team, there continues to be a strong and effective working relationship between the Elected
Members and the executive leadership of Council. It is considered that the organisation has
strong leadership and capability and is focused on getting on with the job of running the city,
planning for its future and dealing with the pressures created by COVID-19 and our rapid
growth.

24.

There is evidence that confidence in the Council is at a low level. The Community
Perceptions Monitor Study survey measures the perceptions of residents regarding various
aspects of services that Council provides. The study has been undertaken since 2006, with
the current results recently released for the year ending June 2020. Residents’ perceptions
of Council’s performance have been declining in the last 24 months. TCC’s reputation is
considered ‘poor’ against the reputation benchmark with an overall reputation score of 37%
based on four categories – Financial Management (28%), Leadership (42%), Faith & Trust in
Council (34%) and Quality of Services and Facilities (53%).

25.

Ask your Team was the name of the 2020 Culture & Engagement Survey that staff
completed in July 2020 that set a benchmark for how staff feel about Council as a place to
work. Staff were asked a number of questions relating to culture, suppliers, information,
leadership, learning, performance development, strategy and rate payer/community focus
among others.
Amongst the questions that scored the lowest across the survey, the
following two questions were in the bottom three:

26.

•

Our Council has a positive reputation in its local business community (46%); and

•

Our Council has a positive reputation with our ratepayers (37%).

This illustrates a serious risk of affecting the Council’s ability to deliver timely, sound, and
democratic local decision-making and action for its communities and to promote the social,
economic, environmental, and cultural well-being of those communities. It is eroding
community trust in the Council and adversely impacting on reputation.

OPTIONS ANALYSIS
27.

There are 3 broad option pathways that the Council could choose, being to:
(a)

Take no action in response to the letter from DIA.

(b)

Initiate by Council resolution action to address the problem.

(c)

Request the Minister take action under the Local Government Act 2002.

Option 1: Take No Action
28.

The “Take No Action’ option would be a deliberative decision not to respond to the DIA
request (as outlined in paragraph 7 of this report). It would result in the Chief Executive
writing to the DIA advising that the Elected Members had not agreed on a clear plan and that
no Council instigated independent evaluation would occur.

29.

The disadvantage of this option is that Council would likely be seen as unwilling to address
relationship problems and to improve the decision-making environment which has developed
this triennium. This has the risk of the Minister concluding under S257(1)(b)(ii) that the
Council is “unable or unwilling to effectively address the problem ”.

30.

This option has the risk that the Minister may appoint a Crown Manager or Commission. The
appointment of a Crown Manager will reduce the autonomy of Council with a statutory
requirement for the local authority to “comply with the directions of a Crown Manager”.
Where a Commission is appointed the decision-making powers of Elected Members are
removed as members will not be entitled to act (or to be paid any remuneration).

Item 6.1

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 Emergency Council Meeting Agenda

21 August 2020

Option 2: Initiate by Council Resolution Action to Address the Problem
31.

This option would be Council initiating an action to proactively address the situation.

32.

The advantages of this option are that it:
•

Enables the Mayor and Councillors to have a high degree of control and to design a
process which is agreed by majority to be appropriate in the circumstances.

•

Reduces the likelihood of direct Ministerial intervention under Part 10 of the LGA.

33.

While this option could take a number of forms, it is suggested that Council appoint a Review
and Observer Team. This would be analogous to the arrangements that the Minister could
instigate under the LGA.

34.

It is suggested that the Council appointed Review and Observer Team would be:
(a)

A minimum of two and maximum of three persons;

(b)

Made up of individuals with appropriate skills and experience in the local government
sector and governance;

(c)

Appointed for an initial term through to 30 June 2021, with a review at or around 31
March 2021 as to the appropriateness of extending beyond 30 June 2021;

(d)

Focused on support, monitoring and reporting on progress in restoring the strong
unified leadership needed to advance the city’s interest.

Option 3: Request the Minister to take action under the Local Government Act 2002
35.

This option would be a formal Council resolution under Section 258(1)(b) of the LGA
requesting appointment of a Crown Review Team, or under section 258B(1)(b) requesting
the appointment of a Crown Observer.

36.

The Minister would be required to take into account the matters outlined in paragraphs 9 to
14 of this report in deciding whether to make such an appointment. The decision would be
ultimately up to the Minister as to whether a Crown Review Team or a Crown Observer
would be appointed and also the content of the associated Terms of Reference.

37.

The advantage of this option is that it removes Elected Members from the process and
introduces an entirely independent approach to the problem.

38.

The disadvantage is that Elected Members have significantly less opportunity to contribute to
and influence the approach.

39.

This option has the risk that the Minister may appoint a Crown Manager or Commission. As
noted in paragraph 30 this has implications for elected member autonomy and decision
making.

Recommended Option
40.

Option 2 is the Recommended Option.

FINANCIAL CONSIDERATIONS
41.

Depending on the option which is selected the financial considerations will vary. There have
been external costs incurred by way of legal fees associated with this issue. The
appointment of any independent evaluator/s or Review and Observer Team will have
associated costs. It is proposed to estimate these future costs in ‘Next Steps’ (refer
paragraph 43).

SIGNIFICANCE
42.

It is assessed that this matter is of medium significance. It is considered that community
engagement on this matter and associated options is not appropriate.

Item 6.1

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 Emergency Council Meeting Agenda

21 August 2020

NEXT STEPS
43.

If Option 2 is approved as recommended, it is intended that the Chief Executive report back
to Council within two weeks on the following matters:
•

Draft Terms of Reference for the Review and Observer Team

•

Recommended members for the Review and Observer Team (in consultation with DIA)

•

Cost estimate and budget approval request for action implementation

•

Summary of key Council decisions through to 30 June 2021 to deliver the LTP and on
SmartGrowth objectives (for subsequent submission to DIA).

ATTACHMENTS
1.

DIA Letter to Tauranga City Council - A11704099 ⇩

Item 6.1

Page 14

 Emergency Council Meeting Agenda 21 August 2020

 

@376? Te Ta ri Taiwhenua

 

Internal Affairs
13 August 2020 45 Pipitea Street
Wellington 5014
Marty Grenfell Phone +641 4 495 7200
Chief Executive dia.govt.nz

Tauranga City Council
91 Willow Street
Tauranga 3143

T?na koe Marty,

I am writing to you following concerns raised through recent media articles and
correspondence received by us regarding significant conflict among elected representatives
at Tauranga City Council (the Council).

It is disappointing to note the poor conduct of elected representatives behind the scenes, and
that this is conveyed to the public through social media and news channels. It is not apparent
if there is any willingness to resolve these conflicts. This does not give confidence that the
Council can resolve its differences and represent its community with unified leadership.

The Council is experiencing an important period of growth. Significant Government
investment in the region has put a spotlight on the Crown?s Urban Growth Partnership in the
Western Bay of Plenty through the SmartGrowth programme. The Council is expected to
provide strong, unified governance and leadership to deliver the anticipated social and
economic outcomes of this investment.

In advising the Minister of Local Government on action she may need to take pursuant to Part
10 of the Local Government Act 2002, I require assurance and evidence that the Council is
taking proactive steps to restore trust and confidence in its ability to meet the Crown?s
expectations of a high-performing Council. Specifically, I request:

0 an independent evaluation of the current standard of governance performance by
elected representatives against the expectations set out in the Council?s Code of
Conduct, particularly section 5 Refotionshr'ps and section 6 Media and Social Media;

0 a summary of the key issues that elected representatives agree are impacting the
Council?s performance;

0 a clear plan on how the Council will address the issues. including a timeline and
framework for how success will be measured; and

?r a summary of key decisions that the Council needs to make through to 30 June 2021
to deliver the 2021-2031 Long-Term Plan and SmartGrowth objectives.

In considering how to address my concerns, I encourage you to seek high-quality, independent
advice to guide and support the Council through this process. I would appreciate a response
by Friday 21 August 2020 on how the Council will achieve this outcome.

 

Item 6.1 - Attachment 1 Page 15

Emergency Council Meeting Agenda 21 August 2020

 

Should you have any questions regarding this request, please contact me at
or Richard Hardie, Manager Operational Policy, at
Richard.Hardie@dia.govt.nz or 027 540 6014.

 

Heoi ano

-.

Cl

Anita Balakrishnan
Director Ministerial Advice, Monitoring, and Operations
Policy, Regulation, and Communities Branch

Page 2 of 2

 

Item 6.1 - Attachment 1 Page 16

Emergency Council Meeting Agenda 21 August 2020

 

7 DISCUSSION OF LATE ITEMS

 

Page 17