I hereby give notice that an ordinary meeting of the Finance and Performance Committee will be held on:

 

Date:

Time:

Meeting Room:

Venue:

 

Tuesday, 20 November 2018

9.30am

Reception Lounge
Auckland Town Hall
301-305 Queen Street
Auckland

 

Komiti ā Pūtea, ā Mahi Hoki /
Finance and Performance Committee

 

OPEN AGENDA

 

 

 

MEMBERSHIP

 

Chairperson

Cr Ross Clow

 

Deputy Chairperson

Cr Desley Simpson, JP

 

Members

Cr Josephine Bartley

Cr Penny Hulse

 

Cr Dr Cathy Casey

Cr Mike Lee

 

Deputy Mayor Cr Bill Cashmore

Cr Daniel Newman, JP

 

Cr Fa’anana Efeso Collins

Cr Greg Sayers

 

Cr Linda Cooper, JP

Cr Sharon Stewart, QSM

 

Cr Chris Darby

IMSB Chair David Taipari

 

Cr Alf Filipaina

Cr Sir John Walker, KNZM, CBE

 

Cr Hon Christine Fletcher, QSO

Cr Wayne Walker

 

Mayor Hon Phil Goff, CNZM, JP

Cr John Watson

 

Cr Richard Hills

Cr Paul Young

 

IMSB Member Terrence Hohneck

 

 

(Quorum 11 members)

 

 

 

Sandra Gordon

Senior Governance Advisor

 

13 November 2018

 

Contact Telephone: (09) 890 8150

Email: sandra.gordon@aucklandcouncil.govt.nz

Website: www.aucklandcouncil.govt.nz

 


 


 

Terms of Reference

 

Responsibilities

 

The purpose of the Committee is to:

(a)  control and review expenditure across the Auckland Council Group to improve value for money

(b)  monitor the overall financial management and performance of the council parent organisation and Auckland Council Group

(c)   make financial decisions required outside of the annual budgeting processes

 

Key responsibilities include:

·         Advising and supporting the mayor on the development of the Long Term Plan (LTP) and Annual Plan (AP) for consideration by the Governing Body including:

o   Local Board agreements

o   Financial policy related to the LTP and AP

o   Setting of rates

o   Preparation of the consultation documentation and supporting information, and the consultation process, for the LTP and AP

·         Monitoring the operational and capital expenditure of the council parent organisation and Auckland Council Group, and inquiring into any material discrepancies from planned expenditure

·         Monitoring the financial and non-financial performance targets, key performance indicators, and other measures of the council parent organisation and each Council Controlled Organisation (CCO)  to inform the Committee’s judgement about the performance of each organisation

·         Advising the mayor on the content of the annual Letters of Expectations (LoE) to CCOs

·         Exercising relevant powers under Schedule 8 of the Local Government Act 2002, which relate to the Statements of Intent of CCOs

·         Exercising Auckland Council’s powers as a shareholder or given under a trust deed, including but not limited to modification of constitutions and/or trust deeds, granting shareholder approval of major transactions where required, exempting CCOs, and approving policies relating to CCO and CO governance

·         Approving the financial policy of the Council parent organisation

·         Establishing and managing a structured approach to the approval of non-budgeted expenditure (including grants, loans or guarantees) that reinforces value for money and an expectation of tight expenditure control

·         Write-offs

·         Acquisition and disposal of property, in accordance with the long term plan

·         Recommending the Annual Report to the Governing Body

·         Te Toa Takatini

 

 

 

 


 

Powers

 

(a)  All powers necessary to perform the committee’s responsibilities, including:

a.    approval of a submission to an external body

b.    establishment of working parties or steering groups.

(b)  The committee has the powers to perform the responsibilities of another committee, where it is necessary to make a decision prior to the next meeting of that other committee.

(c)   The committee does not have:

a.    the power to establish subcommittees

b.    powers that the Governing Body cannot delegate or has retained to itself (section 2).

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Exclusion of the public – who needs to leave the meeting

 

Members of the public

 

All members of the public must leave the meeting when the public are excluded unless a resolution is passed permitting a person to remain because their knowledge will assist the meeting.

 

Those who are not members of the public

 

General principles

 

·           Access to confidential information is managed on a “need to know” basis where access to the information is required in order for a person to perform their role.

·           Those who are not members of the meeting (see list below) must leave unless it is necessary for them to remain and hear the debate in order to perform their role.

·           Those who need to be present for one confidential item can remain only for that item and must leave the room for any other confidential items.

·           In any case of doubt, the ruling of the chairperson is final.

 

Members of the meeting

 

·           The members of the meeting remain (all Governing Body members if the meeting is a Governing Body meeting; all members of the committee if the meeting is a committee meeting).

·           However, standing orders require that a councillor who has a pecuniary conflict of interest leave the room.

·           All councillors have the right to attend any meeting of a committee and councillors who are not members of a committee may remain, subject to any limitations in standing orders.

 

Independent Māori Statutory Board

 

·           Members of the Independent Māori Statutory Board who are appointed members of the committee remain.

·           Independent Māori Statutory Board members and staff remain if this is necessary in order for them to perform their role.

 

Staff

 

·           All staff supporting the meeting (administrative, senior management) remain.

·           Other staff who need to because of their role may remain.

 

Local Board members

 

·           Local Board members who need to hear the matter being discussed in order to perform their role may remain.  This will usually be if the matter affects, or is relevant to, a particular Local Board area.

 

Council Controlled Organisations

 

·           Representatives of a Council Controlled Organisation can remain only if required to for discussion of a matter relevant to the Council Controlled Organisation.

 

 

 


Finance and Performance Committee

20 November 2018

 

 

ITEM   TABLE OF CONTENTS                                                                                         PAGE

1          Apologies                                                                                                                        9

2          Declaration of Interest                                                                                                   9

3          Confirmation of Minutes                                                                                               9

4          Petitions                                                                                                                          9  

5          Public Input                                                                                                                    9

5.1     Public Input - Ōrākei Baptist Church regarding the rating of church properties                                                                                                                                9

5.2     Public Input - Elim Church of New Zealand regarding the rating of church properties                                                                                                            10

5.3     Public Input - Anglican Diocese of Auckland regarding the rating of church properties                                                                                                            10

5.4     Public Input - St Heliers Presbyterian Church and Community Centre regarding the rating of church properties                                                       10

5.5     Public Input - Presbyterian Churches in the Auckland Region regarding the rating of church properties                                                                               11

6          Local Board Input                                                                                                        11

6.1     Local Board Input - Howick Local Board regarding a proposed disposal of 34 Moore Street, Howick                                                                                         11

7          Extraordinary Business                                                                                              12

8          Rating of religious use properties                                                                             13

9          Proposed priorities for the 2019 letters of expectations to substantive council-controlled organisations                                                                                             23

10        Disposal recommendations report - 34 Moore Street, Howick                              29

11        Disposal of Corporate Accommodation, Corporate Property Portfolio Strategy 55

12        Update on Speedway Relocation                                                                               57

13        Transfers of land within the Council Group (Covering report)                              69

14        Finance and Performance Committee - Information Report - 20 November 2018 71  

15        Consideration of Extraordinary Items 

PUBLIC EXCLUDED

16        Procedural Motion to Exclude the Public                                                               133

C1       Delegations for weathertightness claim                                                                 133  

 


1          Apologies

 

At the close of the agenda no apologies had been received.

 

 

2          Declaration of Interest

 

Members are reminded of the need to be vigilant to stand aside from decision making when a conflict arises between their role as a member and any private or other external interest they might have.

 

 

3          Confirmation of Minutes

 

That the Finance and Performance Committee:

a)         confirm the ordinary minutes of its meeting, held on Wednesday, 14 November 2018 as a true and correct record.

 

 

4          Petitions

 

At the close of the agenda no requests to present petitions had been received.

 

 

5          Public Input

 

Standing Order 7.7 provides for Public Input.  Applications to speak must be made to the Governance Advisor, in writing, no later than one (1) clear working day prior to the meeting and must include the subject matter.  The meeting Chairperson has the discretion to decline any application that does not meet the requirements of Standing Orders.  A maximum of thirty (30) minutes is allocated to the period for public input with five (5) minutes speaking time for each speaker.

 

 

5.1       Public Input - Ōrākei Baptist Church regarding the rating of church properties

Te take mō te pūrongo / Purpose of the report

1.       To make a presentation to the Finance and Performance Committee related to the rating of churches.

Whakarāpopototanga matua / Executive summary

2.       Ms Diane Robinson, Volunteer Treasurer for the Ōrākei Baptist Church wishes to address the committee regarding the rating of churches.

Ngā tūtohunga / Recommendation/s

That the Finance and Performance Committee:

a)      receive and thank Ms Diane Robinson for her presentation regarding the rating of church properties.

 

 

5.2       Public Input - Elim Church of New Zealand regarding the rating of church properties

Te take mō te pūrongo / Purpose of the report

1.       To make a presentation to the Finance and Performance Committee related to the rating of churches.

Whakarāpopototanga matua / Executive summary

2.       Mr Chris Bethwaite and Mr John Roberts – Elim Church of New Zealand Inc wish to address the committee regarding the rating of churches.

Ngā tūtohunga / Recommendation/s

That the Finance and Performance Committee:

a)      receive and thank Mr Chris Bethwaite and Mr John Roberts for their presentation regarding the rating of church properties.

 

 

5.3       Public Input - Anglican Diocese of Auckland regarding the rating of church properties

Te take mō te pūrongo / Purpose of the report

1.       To make a presentation to the Finance and Performance Committee related to the rating of churches.

Whakarāpopototanga matua / Executive summary

2.       Right Reverend Ross Bay, Bishop of Auckland – Anglican Diocese of Auckland wishes to address the committee regarding the question of rates in relation to church properties.

Ngā tūtohunga / Recommendation/s

That the Finance and Performance Committee:

a)      receive and thank Right Reverend Ross Bay, Bishop of Auckland for his presentation regarding the rating of church properties.

 

 

5.4       Public Input - St Heliers Presbyterian Church and Community Centre regarding the rating of church properties

Te take mō te pūrongo / Purpose of the report

1.       To make a presentation to the Finance and Performance Committee related to the rating of churches.

Whakarāpopototanga matua / Executive summary

2.       Rev Pauline Stewart – St Heliers Presbyterian Church and Community Centre wishes to address the committee regarding the rating of church properties.

Ngā tūtohunga / Recommendation/s

That the Finance and Performance Committee:

a)      receive and thank Rev Pauline Stewart for her presentation regarding the rating of church properties.

 

 

 

5.5       Public Input - Presbyterian Churches in the Auckland Region regarding the rating of church properties

Te take mō te pūrongo / Purpose of the report

1.       To make a presentation to the Finance and Performance Committee related to the rating of churches.

Whakarāpopototanga matua / Executive summary

2.       Mr Geoff Foster, representing the Presbyterian Churches in the Auckland Region wishes to address the committee regarding the rating of church properties.

Ngā tūtohunga / Recommendation/s

That the Finance and Performance Committee:

a)      receive and thank Mr Geoff Foster for his presentation regarding the rating of church properties.

 

 

6          Local Board Input

 

Standing Order 6.2 provides for Local Board Input.  The Chairperson (or nominee of that Chairperson) is entitled to speak for up to five (5) minutes during this time.  The Chairperson of the Local Board (or nominee of that Chairperson) shall wherever practical, give one (1) day’s notice of their wish to speak.  The meeting Chairperson has the discretion to decline any application that does not meet the requirements of Standing Orders.

 

This right is in addition to the right under Standing Order 6.1 to speak to matters on the agenda.

 

6.1       Local Board Input - Howick Local Board regarding a proposed disposal of 34 Moore Street, Howick

Te take mō te pūrongo / Purpose of the report

1.       To make a presentation to the Finance and Performance Committee regarding a proposed disposal of 34 Moore Street, Howick.

Whakarāpopototanga matua / Executive summary

2.       Mr David Collings, Chairperson of the Howick Local Board wishes to address the committee.

Ngā tūtohunga / Recommendation/s

That the Finance and Performance Committee:

a)      receive and thank Howick Local Board Chair, David Collings for his presentation regarding a proposed disposal of 34 Moore Street, Howick.

 

 


 

 

 

7          Extraordinary Business

 

Section 46A(7) of the Local Government Official Information and Meetings Act 1987 (as amended) states:

 

“An item that is not on the agenda for a meeting may be dealt with at that meeting if-

 

(a)        The local  authority by resolution so decides; and

 

(b)        The presiding member explains at the meeting, at a time when it is open to the public,-

 

(i)         The reason why the item is not on the agenda; and

 

(ii)        The reason why the discussion of the item cannot be delayed until a subsequent meeting.”

 

Section 46A(7A) of the Local Government Official Information and Meetings Act 1987 (as amended) states:

 

“Where an item is not on the agenda for a meeting,-

 

(a)        That item may be discussed at that meeting if-

 

(i)         That item is a minor matter relating to the general business of the local authority; and

 

(ii)        the presiding member explains at the beginning of the meeting, at a time when it is open to the public, that the item will be discussed at the meeting; but

 

(b)        no resolution, decision or recommendation may be made in respect of that item except to refer that item to a subsequent meeting of the local authority for further discussion.”


Finance and Performance Committee

20 November 2018

 

 

Rating of religious use properties

 

File No.: CP2018/20952

 

  

Te take mō te pūrongo / Purpose of the report

1.       To recommend guidelines for the application of rates to properties used for religious purposes and a transition mechanism for managing changes to their rates.

Whakarāpopototanga matua / Executive summary

2.       The council’s review of its rating treatment of non-rateable properties has resulted in a number of religious properties receiving large rates increases this year. While three letters were issued to affected ratepayers, some organisations have now raised concerns that they were unaware of what the full impact of the changes would be.

3.       The non-rateable review identified that rating information for religious properties was out of date or incomplete and they were being rated inconsistently across the region, reflecting the approaches taken by the legacy councils. The review process did not change rating policy, instead ensuring that the policy was applied consistenly. The outcome was an increase in rates for religious properties from $2.3 million to $3.6 million.  In response to concerns raised by ratepayers officers were asked to examine the outcome of the review.  Officers then sought additional legal guidance and investigated concerns raised by ratepayers.

4.       Rates must comply with legislation that requires that land solely or principally used for religious worship is non-rateable.  Rates paid by religious organisations for land used for other purposes should be fair and comparable to other properties that are being used for the same or similar purposes.

5.       Officers recommend setting administrative guidelines for the rating treatment of properties used for religious purposes. These will see small parts of properties that are used for purposes ancillary to religious worship be treated as non-rateable. Parts of land used for other purposes should be rated in the same way as other non-religious use properties so as to be fair and equitable. Residences will be rated as residential while cafes, shops and car parks operated commercially will be rated as business.  Applying the proposed guidelines will reduce the rates for these properties from $3.6 million to $3.0 million.  The key change is a $500,000 reduction in rates that had been applied to small offices.

6.       The table below shows the rate treatment that would apply to the different uses of land owned by religious properties based on the application of these guidelines.

Activity

Rating treatment

Worship incl. halls used for religious education

Non-rateable (waste charges only)

Ancillary to worship (e.g. small offices, non-commercial op shops and cafes, car parking)

Not for profit childcare provided under the Education Act

Business (e.g. large offices, commercial shops and cafes), car parks hired out commercially

Business

Commercial childcare

Community; halls, gyms and community childcare

Residential

 

Residential

Farm/lifestyle

Farm/lifestyle

 


 

7.      Officers recommend that a transition be provided to address the uncertainty ratepayers have faced from the timing of decisions and communication issues.  The transition would hold rates for 2018/2019 at 2017/2018 levels except for increases caused by the identification of commercial activity.  The transition means the rates payable for 2018/2019 will be around $2.7 million.  The majority of the increase is from a single commerically operated car park with $200,000 in rates.  The new rates will apply from 1 July 2019.  Officers will apply a rates transition grant automatically to rates accounts and issue new invoices.

 

Ngā tūtohunga / Recommendation/s

That the Finance and Performance Committee:

a)      agree to transition rates increases for religious use properties by deferring rates increases to 2019/2020 through the direct application of a grant to rates accounts for 2018/2019 to hold rates at 2017/2018 levels except for rates increases caused by the identification of commercial activity

b)      agree that the rating approaches set out in the following table be used for parts of religious use land not used for religious worship, religious education, or as a cemetery

Land use

Rating approach

Retail, commercial or industrial

Business

Residential

Residential

Farm or lifestyle

Farm/lifestyle

Vacant/unused

Value based on highest and best use as determined by their underlying zone and rate accordingly

Car parks

Car parks only serving the religious worship land will be considered part of the non-rateable activity

Car parks serving multiple land uses will be apportioned based on the proportional ratio of rating treatment of the other parts of the land

Business where paid parking is in place

Halls and gymnasiums

Officers will work with affected ratepayers to clarify the use of halls to ensure those primarily being used for religious purposes are treated as non-rateable

Other halls and gymnasiums used for community purposes will be rated residential

Cafés

Cafés not operating commercially will be considered part of the non-rateable activity

Cafés operating commercially will be rated business

Childcare

Not-for-profit childcare provided under the Education Act is non-rateable

Childcare providing a community service for the benefit of the community will continue to be classified as residential

Childcare operating for profit or not open to the general public will continue to be classified as business

Op Shops

Op Shops not operating in a commercial like manner (such as those only open for a small number of hours each week) will be considered part of the non-rateable activity

Op Shops operating commercially or operating from a separate title will continue to be classified as business

Libraries

Libraries will be zero-rated

Offices

Small offices will be considered part of the principle use of the property and will be non-rateable

Large offices will be rated as business

 

c)      agree to consult on amending the Funding Impact Statement to provide for zero rating of libraries as part of the Annual Budget 2019/2020

d)      direct officers to work with the owners of religious properties to clarify the use of halls

e)      direct officers to communicate these decisions to the affected ratepayers.

Horopaki / Context

8.       Council should apply rates equitably across all ratepayers.  The Local Government Rating Act 2002 provides that all land is rateable except where it is specifically exempted. Non-rateable parts of land used for religious purposes are set out below and includes land used:

·        solely or principally as a place of religious worship

·        for a Sunday/Sabbath school, or other form of religious education (non-profit only)

·        for theological training up to 1.5 Ha

·        as a cemetery, crematorium, or burial ground up to 2 Ha

·        as an integrated school

·        for early childhood education under the Education Act.

9.       The remainder of the land is considered rateable and it is up to council to determine how to treat these rateable parts.  Land considered non-rateable is still liable for waste management targeted rates where a waste management service is provided.

10.     Following concerns raised at the Finance and Performance Committee officers undertook a review of all non-rateable properties.  The purpose of the review was to ensure that the council was complying with legislation and applying its rating policy consistently across all ratepayers.  The review was not a change to council policy.

11.     The review identified 970 properties with a religious use that were paying $2.3 million in rates. It also found that the information that council held on some of these properties was outdated and the rating treatment reflected differing legacy council approaches. 

12.     As part of council’s efforts to update the information held on these properties council sought to engage with the owners of religious use properties. This included at least 3 letters to each ratepayer and a request that they provide information on how their property was being used. However, it has become apparent that these letters may not have reached the appropriate contact within each religious organisation.

13.     Additionally, this process culminated at the end of the 10-year Budget process and coincided with the revaluation.  Officers were therefore unable to advise of the rating impacts of the review until the first instalment rates notices were about to be issued.

14.     The outcome of the review was an increase in rates for these properties of $1.3 million (from $2.3 million to 3.6 million).  241 properties experienced a decrease in rates while 542 experienced an increase.  305 of these experienced an increase of more than $1,000. While some of the changes experienced by religious use properties was due to the review, other changes were caused by the 2017 revaluation. 16 properties were found to be fully rateable as they were no longer being used for religious worship.

15.     In response to concerns raised by ratepayers, officers were asked to review the outcome of the non-rateable review for properties used for religious purposes.  Until that review was completed religious properties were offered the opportunity to defer payment of their rates.  157 properties took up this offer.


 

Tātaritanga me ngā tohutohu / Analysis and advice

Introduction

16.     To support review of the rating treatment of properties used for religious purposes officers have sought additional legal advice and considered the concerns expressed by ratepayers.

17.     Many of the ratepayers facing change raised concerns about the application of rates to small offices or other parts of the property used for purposes ancillary to religious worship.  Where a small part of the property is used for purposes ancillary to religious worship or a related but minor activity is taking place on the property it is still principally used for religious worship and officers consider it should be non-rateable.  Officers recommend that these parts of the land not be apportioned for separate rating.  They would therefore be treated as non-rateable.  Use of the land on a larger scale or for commercial purposes should continue to be apportioned to ensure fair treatment relative to other ratepayers.

18.     After considering the further legal advice, ratepayer concern and undertaking additional analysis, officers have developed a set of administrative guidelines that can be used in establishing the rating treatment of properties used for religious purposes.  The guidelines meet the council’s obligations to comply with the Local Government Rating Act 2002 and to ensure Auckland Council’s current rating policy is applied consistently across all ratepayers.  This approach ensures fair treatment of religious use properties and other properties.

19.     There are two key elements to these guidelines:

i)        where a small part of the property is used for purposes ancillary to religious worship it should not be apportioned and therefore be treated as non-rateable e.g. small offices, non-commercial café’s, non-commercial op shops and car parking for these activities. 

ii)       the parts of land used for other purposes should be rated in a consistent way as other non-religious use properties across the region e.g. residences – residential rates, businesses, commercial car parks, commercial café’s and commercial op shops - business rates.

20.     Ratepayers also expressed concern about the size and suddenness of change and the value to the community of the activities their organisations undertake alongside religious worship.  A transition period to manage the transition of rates is therefore proposed.

Analysis of land use

21.     The following sections set out officers recommendations for how each type of activity should be treated after applying the guidelines and the consequent rating implications.  Note that land solely or principally used for religious worship is non-rateable.

Commercial, residential, farm/lifestyle and vacant land

22.     Land used for these purposes should be rated as provided for in Auckland Council’s rating policy i.e. business, residential, farm/lifestyle or in the case of vacant land valued at its highest and best use and rated accordingly.  This is consistent with the treatment of other land owned by community or charitable organisations.

Activity

Number of properties

Rates for 2018/2019 after guidelines applied

Notes

Business

30

$900,000

Leased by religious organisation and leased commercially

Some owned privately and leased to religious organisation

Residential

226

$750,000

Houses, flats, dormitories, friaries, hostels, retirement villages, and manses

Farm/lifestyle

8

$30,000

 

Vacant/unused

7

$55,000

 

Car parks

23.     Car parks where all the other land is non-rateable should be non-rateable.

24.     Car parks on land that has both rateable and non-rateable parts have the value of the car park proportionately added to the other respective parts of the land. For example, if 80 percent of the land is used for religious worship and 20 percent used for a business, then 80 percent of the value of the car park is incorporated in the non-rateable part of the property and 20 percent of the value of the car park is incorporated in the business.

25.     Car parks operated commercially should be rated business.  8 properties have car parks that fall into this category, with rates of around $240,000. This is primarily made up of one large car park in the city centre.

Halls and gymnasiums

26.     Halls primarily being used for religious worship or education should be non-rateable.

27.     91 halls have been assessed rates of around $290,000. Objections raised by ratepayers of religious use properties have indicated that some of these halls are principally used for religious worship or religious education and are available to let to the community for any excess available time. In these circumstances the hall should be non-rateable.

28.     Officers will be undertaking further work with the owners of all the halls to ensure those primarily being used for religious worship or eductation are treated as non-rateable.

29.     Where rateable, halls and gymnasiums should be rated as residential as they provide a community service for the benefit of the community. There are 124 other halls owned by non-religious community organisations. These are all rated as residential and assessed rates of around $630,000.

30.     There are a range of support options provided by council to community organisations who own their own land. These include having some of their operating or capital costs funded by council and being eligible for local board grants.

31.     There are 2 properties where part of the property is being used as a gymnasium. These should be rated as residential and make up around $5,000 of the assessed rates of religious use land.

Cafés

32.     There are 8 properties where part of the property is being used as a café selling refreshments to the public.  Some of these cafés may not be run commercially, opening for small number of hours or on a pay what you think basis. In these circumstances they should be treated as part of the non-rateable activity.

33.     Cafés operating commercially should be rated as business.

34.     At present all cafes have been classified as business and make up around $25,000 of the rates from religious use land.  Officers will review the operations and determine rateability in conjunction with the property owners.

Childcare operations

35.     There are 69 properties where part of the property is being used to provide childcare. Of these there are 52 childcare services, which as they are operating under the Education Act and are not-for-profit, are non-rateable.  The is one childcare operation that is not for profit but not operating under the Education Act. This is classified as residential as it provides a community service for the benefit of the community and has assessed rates of $2,000. The 16 which are operating for profit or not open to the general public are classified as business and have assessed rates of around $115,000.  This is consistent with the treatment of other childcare operations.


 

Op Shops

36.     There are 22 properties where part of the property is being used as an op shop. These are carrying out retail operations selling second hand goods to the general public. 15 operate for less than 30 hours per week of which 7 operate for less than 10 hours per week. Most make up a small part of the overall value of the property. Where the op shop is not being run in a commercial manner they should be treated as part of the non-rateable activity.

37.     Op shops operating commercially or operating from a separate title should be rated as business.

38.     All the op shops are presenlty rated as business and make up around $70,000 of the rates from religious use land. After applying the guidelines op shops are estimated to make up around $50,000 of the rates from religious use land.

Offices

39.     There are 257 properties where part of the property is being used for an office.

40.     Many of these offices are used for administrative purposes for the religious organisation, are a small part of the property and serve no commercial purpose.  These offices are ancillary to the use of the property for religious worship and should be non-rateable.

41.     However, some offices are larger and are providing administrative support to the wider religious organisation.  These offices should be rated business and treated in the same manner as the offices operated by other charitable and community organisations.

42.     All offices were rated as business in the non-rateable properties review and made up around $1m of the rates from religious use land. Offices make up the largest part of assessed rates for religious use land and account for the largest number of changes arising out of the non-rateable review. After applying the guidelines offices are estimated to make up around $600,000 of the rates from religious use land. In 2017/2018 offices were assessed rates of $500,000.

Libraries

43.     There are 10 religious use properties where part of the property is being used as a library. Other libraries operated by schools or universities should be non-rateable. Rating treatment for these parts should be aligned to other libraries and zero rated by establishing a zero rates differential for these properties.  Libraries were initially classified as business and made up around $37,000 of the rates from religious use land. After applying the guidelines libraries are estimated to only make up around $1,000 of the rates from religious use land. This is for waste charges only.

Overall impact

44.     The table below shows how the application of the recommended guidelines impact on ratepayers assessed rates for 2018/2019. The table shows the number of ratepayers in each change band between rates initailly assessed for 2018/2019 and what they would be when the guidelines are applied.

Dollar Change

<-$1,000

-$1,000 to
-$300

-$300 to
-$50

-$50 to
-$0

$0 to
-$50

$50 to
$300

$300 to
$1,000

$1,000 to
$5,000

$5,000 to $10,000

$10,000+

Initial assessment

39

28

33

312

98

37

85

232

49

29

Revised approach

54

31

37

348

124

113

47

134

33

21

Change

15

3

4

36

26

76

-38

-98

-16

-8

 


 

45.    There is a reduction of 160 ratepayers facing increases of more than $300 from 395 to 235. Increases of more than $1,000 are primarily caused by one or more of the following factors:

·        a siginifcant increase in the value of the property due to revaluation

·        the identification of a business related activity, such as a funeral director or commercial carpark

·        the identification of a large adminstrative office.

46.     The table below shows the rates by activity for 2018/2019 after the application of the recommended guidelines.

Activity

Rating treatment

Rates 18/19
(GST excl)

Worship incl. halls used for religious education

Non-rateable (waste charges only)

$85,000

Ancillary to worship (e.g. small offices, non-commercial op shops and cafes, car parks)

Not for profit childcare (under the Education Act)

Business (e.g. car parks hired out commercially, large offices, commercial shops and cafes)

Business

$1,725,000

Commercial childcare

$115,000

Community childcare

Residential

$2,000

Halls

$285,000

Residential

$750,000

Farm/lifestyle

Farm/lifestyle

$30,000

47.    The majority of aditional rates comes from parts identified as having a business related activity or a large adminstrative office. Officers expect that the amount of rates from halls will be significantly reduced once further work has been undertaken with the owners of all the halls to ensure those primarily being used for religious worship or eductation are treated as non-rateable.

Transition management

48.     Application of the guidelines recommended above results in a significant reduction in rates for a large number of religious use properties relative to those initially assessed from the non-rateable review. However, some religious use properties will still face large increase in rates.

49.     For the reasons noted above many of the affected ratepayers were not aware of the likely scale of the changes and may not have been able to plan to accommodate the impact.  The recommendations in this report propose additional changes.  There may also be issues for those ratepayers who have opted to defer paying their rates until the issue has been considered by council. It is therefore appropriate to consider some form of rates transition for this year.

50.     Officers recommend that a transition apply for this year with any increased rates coming into effect from 1 July 2019.  The transition would be implemented by a grant applied directly as a credit to the rates account.

51.     The transition would apply to those religious properties where a rateable non-commercial activity has been identified. The transitional grant would cover the rates increase due to all changes in rating treatment and the impact of the revaluation.  Transition was not offered to other ratepayers to manage the impact of the 2017 revaluation.  However, given the time taken to determine the issues discussed in this report, and the resulting uncertainty, officers consider a transition of the revaluation impacts is appropriate.

52.     The transition would not apply to properties where commercial activity has been identified.  These properties should be able to manage any additional rates from the commercial return from the activity.

53.     Religious use properties that have seen a decrease in rates should receive their full decrease. This approach ensures that these ratepayers are treated equitably to other similar properties.

Conclusion

54.     Given the substantial reduction in the change in rates for most properties officers recommend that the committee adopt the guidelines set out in the recommendations and the transition discussed above.

55.     Application of the guidelines substantially reduces the change in rates for a large number of religious use properties.  The change that remains is driven by the impact of the 2017 revaluation and the identification of property that should be rated according to Auckland Council’s rating policy in the same way that rates are applied to other ratepayers.  The impact of this change is managed by the proposed transition.

56.     Our initial review of the data shows that for most properties it is clear whether the property is principally used for religious purposes or whether the other activity is of significant scale e.g. small offices and op shops.  However, for a few properties some additional research is required.  In particular officers will need to work with property owners to establish the nature of use of halls.

Implementation

57.     The implementation of the guidelines recommended in this report will be undertaken by officers.  Implementation of the proposed rating treatment of libraries will require an amendment to the differentials in the Funding Impact Statement.  This change will require the inclusion of a proposed amendment to the Funding Impact Statement in the draft Annual Plan 2019/2020.  The amendment will propose the addition of libraries owned by non-commercial ratepayers into the zero-rating differential category.

Ngā whakaaweawe ā-rohe me ngā tirohanga a te poari ā-rohe /
Local impacts and local board views

58.     Decision making on rates is the responsibility of the governing body.  Officers have not sought the views of local boards.  Most changes recommended in this report are changes to administrative guidelines. Local boards will have an opportunity to provide input into the proposal to zero-rate libraries owned by non-commercial ratepayers.

Tauākī whakaaweawe Māori / Māori impact statement

59.     None of the properties identified as being used for religious use are on Maori land.  Officers do not have information on Maori participation in the any of the religious organisations operating from the properties subject to this review.  Maori will be impacted in a similar way to other members of these groups.

Ngā ritenga ā-pūtea / Financial implications

60.     The recommendations of this report would see about $1 million less revenue received from religious use properties in 2018/2019. This is less than 0.1 per cent of total rates revenue, which is always subject to some variation due to movement in growth forecasts and corrections to the rates information database.

Ngā raru tūpono / Risks

61.     There are no risks with the recommendations proposed in this report.

Ngā koringa ā-muri / Next steps

62.     Officers will write to all ratepayers of religious use properties advising them of the council’s decisions, the implications for their property and who to contact to request further information.

 

Ngā tāpirihanga / Attachments

There are no attachments for this report.     

Ngā kaihaina / Signatories

Authors

Aaron Matich - Principal Advisor – Financial Policy

Beth Sullivan - Principal Advisor Policy

Andrew Duncan - Manager Financial Policy

Authorisers

Ross Tucker - Acting General Manager, Financial Strategy and Planning

Matthew Walker - Group Chief Financial Officer

 


Finance and Performance Committee

20 November 2018

 

 

Proposed priorities for the 2019 letters of expectations to substantive council-controlled organisations

 

File No.: CP2018/21176

 

  

Te take mō te pūrongo / Purpose of the report

1.       To propose priorities for inclusion in the 2019 letters of expectations to substantive council-controlled organisations (CCOs).

Whakarāpopototanga matua / Executive summary

2.       The letters of expectations are important documents that provide direction on:

·    the development of the substantive council-controlled organisations’ Statements of Intent for 2019-2022

·    other priorities and issues of importance for the council to inform CCO operations, behaviours and service delivery.

3.       These will be the first letters of expectations since the adoption of the Long-term Plan 2018-2028 and the Auckland Plan 2050.

4.       The expectations are set out in two parts.

·    Part I: Common organisational expectations and priorities for all CCOs. These include financial accountability and value for money, building on the group approach and Māori responsiveness.

·    Part II: The key strategic areas each CCO should focus on. 

5.       The key messages have been drafted based on the priorities in the Long-term Plan 2018-2028, those identified in a workshop with councillors and through informal consultation with the CCOs.

6.       The letters will be drafted on the basis of the committee’s resolutions and sent by Mayor Goff to the board chair of each substantive CCO in early December 2018. 

Ngā tūtohunga / Recommendation/s

That the Finance and Performance Committee:

a)      approve the proposed priorities for inclusion in the 2019 letters of expectations for substantive council-controlled organisations.

b)      delegate representatives to discuss the agreed expectations directly with the CCO boards.

Horopaki / Context

Introduction

7.       The 2019 letters of expectations are important documents that provide direction on:

·    the development of the substantive council-controlled organisations Statements of Intent for 2019-2022

·    other priorities and issues of importance for the council to inform CCO operations, behaviours and service delivery.

8.       The letters should reflect the Long-term Plan 2018-2028 which sets out the investment plans for each CCO.

9.       This paper sets out a scheme for the council’s proposed expectations in two parts:

Part I: Common organisational expectations and priorities for multiple or all CCOs

Part II: The key strategic areas each CCO should focus on.

10.     The focus on fewer key strategic themes or messages should provide a clearer basis for accountability to the council.

11.     Ports of Auckland Limited is not a CCO. The Statement of Corporate Intent for Ports of Auckland Limited was approved at the last Finance and Performance meeting (23 October 2018) and council will have the opportunity to set expectations for its 2019-2022 Statement of Corporate Intent next year.

Relation to other accountability mechanisms

12.     The letters of expectations are one part of an overall accountability framework for substantive CCOs. Some other important parts of this framework are the:

·    Statement of Intent: the Statement of Intent (SOI) sets out the activities and intentions of a CCO for the next year, and the objectives it will contribute to (the letters of expectations provide direction to them).  CCOs report quarterly on progress towards achieving the objectives set out in the Statement of Intent.

·    CCO accountability policy: the CCO accountability policy sets more enduring expectations about CCO priorities and behaviours, is part of the Long-term Plan 2018-2028 and is complementary to the letters of expectations.

·    CCO governance manual: the CCO governance manual provides more detailed guidance on governance and operational matters to CCO boards and staff, and brings together key policies and other requirements.

Tātaritanga me ngā tohutohu / Analysis and advice

Proposed issues for the letters of expectations

13.     The proposed expectations which are common to all CCOs are set out below. These were workshopped with the Finance and Performance Committee on the 23 October 2018, with the focus being on determining the high-level strategic priorities for each CCO. A summary of the key messages from the workshop were then provided to CCOs in draft format for their initial feedback.

Part I: Common messages

14.     The proposed common expectations are focused on the following themes:

·   focusing on delivery of council’s work programmes and providing value for money

·   being more proactive in communicating with public and stakeholders to build trust and confidence, and to highlight successes; climate change - developing mitigation and resilience

·   focusing on Auckland Plan implementation and Māori responsiveness.

15.     The council also expects:

·    CCO participation and support in council’s review of the Statement of Intent process

·    CCO commitment to board performance reviews

·    CCO commitment to working with council on reviewing performance measures.


 

Programme delivery

16.     Council has set a significant agenda with a record capital expenditure investment of $26 billion and increased spending on transport, housing, environment and community initiatives. In the 2019/2020 year the focus will be on delivering our substantial capital projects, readying the city centre for the Americas Cup and APEC in 2021 and continuing to pursue savings, efficiencies and alternative financing opportunities.

17.     Council would like to be kept informed of progress on this capital programme and the wider programmes of investment and where savings are being made. Council expects the CCOs to work collaboratively with the council group to advance the capital programme and to develop improved governance and capability around the delivery of these programmes.

Building trust and confidence

18.     The new funding tools, including the regional fuel tax, and the water quality and environmental targeted rates, along with the council’s focus on delivery mean that it will be important for our CCOs to develop strong community engagement programmes. We will expect CCOs to work with the council group to lift trust levels amongst our community and stakeholders, by putting our customers and ratepayers at the centre of their businesses and by providing evidence-based analysis for any decisions made.

19.     CCOs will be expected to monitor and report on the delivery of these programmes and their capital investment activity in transparent and easily understood way.

Auckland Plan implementation

20.     Our CCOs play a critical role in responding to Auckland’s key challenges by delivering on the outcomes of the Auckland Plan 2050. This year, we would expect each CCO to outline in their Statement of Intent how they will:

·    align priorities with the directions and focus areas and show how their activities will contribute to delivering the Auckland Plan outcomes

·    support development and activity envisaged in the nodes, development areas, future urban areas and rural settlement expansion identified in the first decade of the Auckland Plan Development Strategy (including development of structure plans and plan change processes)

·    report annually on activities that contribute to delivering the Auckland Plan 2050.

Climate Change

21.     Addressing the challenges that climate change presents for Auckland is a priority for council. The impacts of climate change will require the application of new ideas and approaches to ensure that as a council group we respond to, mitigate and adapt to the effects of climate change.

22.     We expect the CCOs to outline how they plan to address climate change in their areas of responsibility, including the development of any measures to assess their performance in this area.

Māori responsiveness

23.     The council expects the CCOs to contribute to Te Toa Takatini and the council group Tiriti o Waitangi Audit response as an integral part of their work programme. We expect CCOs to provide detail on their performance in delivering their Māori responsiveness in their quarterly reporting.


 

Part II: Specific expectations for each council-controlled organisation

24.     The specific expectations for each CCO are provided below.

Auckland Transport

25.     Auckland Transport’s SOI should:

·    strongly reflect the directions and focus areas of the Auckland Plan 2050. In particular, the SOI should outline how Auckland Transport will:

o deliver the safety strategy to reduce death and serious injuries on the Auckland transport network, including safety education for young Aucklanders and our rangatahi

o continue to increase uptake of public transport and walking and cycling

o deliver value for money in the approved Regional Land Transport Plan capital programme, including the Regional Fuel Tax initiatives

o investigate and invest in transport technology that improves the efficiency of the Auckland’s transport system

o improve transparency on critical asset maintenance programming

o work collaboratively with council to ensure the capital programme takes into account the impact of transport investment on surrounding urban form and incorporates good urban practice

·    describe how Auckland Transport will improve communication with councillors, local board and customers, and have clear strategies for community engagement

·    respond to emerging issues to prepare for operationalisation of the City Rail Link project.

Auckland Tourism, Events and Economic Development (ATEED)

26.     ATEED’s SOI should outline how the organisation will:

·    encourage sustainable growth of Auckland’s visitor economy through the lens of destination management and demonstrate value for money for Accommodation Providers Targeted Rate

·    attract investment to Auckland by coordinating and promoting the Auckland Investment Story to grow business and employment in Auckland

·    focus on economic development outcomes, especially in Auckland’s south and west, to meet challenges of new economy and mobilising central government agencies around Auckland needs

·    ensure performance measures provide evidence of ATEED’s performance in generating new economic activity

Regional Facilities Auckland

27.     Regional Facilities Auckland’s SOI should outline how the organisation will:

·    work closely with council on any plans for strategic redevelopment of assets, particularly for stadiums

·    actively engage with the council and arts and cultural institutions in the co-design of a strategy for the sector, and supporting governance and funding arrangements

·    deliver on capital redevelopment programme and manage the business through these works to improve financial performance.


 

Panuku Development Auckland (Panuku)

28.     Panuku’s SOI should outline how the organisation will:

·    deliver the transform and unlock programme to help create our major centres as community catalysts for good design

·    improve capex delivery and business planning

·    work with ATEED, council and other CCOs on preparing for and the timely delivery of infrastructure to support the America’s Cup and APEC

·    ensure community engagement assists decision-making and that the benefits of redevelopment to communities are fully explained

·    work closely with council on the marina strategy.

Watercare Services Limited

29.     Watercare’s SOI should outline how the organisation will:

·    continue to work with the council to respond to any changes from the government’s review of how water, waste water and storm water services are regulated and delivered

·    investigate commercial arrangements and other funding sources which are in the best interests of the council group. Noting that this should not compromise service for Aucklanders. Council expects to be kept informed of any proposals and significant changes will need to be approved by the council.

·    stay on schedule and on budget for the delivery of the Central Interceptor project, including participating in ongoing work with the crown and council on its funding and on engaging with the community

·    continue to work with the Healthy Waters department of council on the Western Isthmus Water Quality Improvement Programme. Watercare Services Limited should ensure it constructively engages the community on this project.

Ngā whakaaweawe ā-rohe me ngā tirohanga a te poari ā-rohe /
Local impacts and local board views

30.     The governance relationship between the substantive CCOs and the council sits with the Governing Body, and therefore local boards have not been consulted on issues for inclusion in the letters of expectations.

31.     This year there is an increased focus on ensuring that those CCOs with a role in place-shaping (particularly Auckland Transport, Watercare Services Limited, Panuku Development Auckland and Auckland Tourism, Events and Economic Development) are implementing their obligations to engage with local boards and their communities.

Tauākī whakaaweawe Māori / Māori impact statement

32.     Māori responsiveness is a priority for the substantive CCOs and this is reflected in the common expectations proposed in the letters of expectations.

Ngā ritenga ā-pūtea / Financial implications

33.     There are no financial implications arising from this report.  The CCOs are being asked to focus on delivering activities agreed through the Long-term Plan 2018- 2028.

34.     The CCOs are also being asked to pursue savings, efficiencies and alternative financing opportunities.

Ngā raru tūpono / Risks

35.     There is a risk that CCOs may misunderstand the expectations provided in the letters of expectations. It is suggested that the committee could delegate representatives to discuss the agreed expectations directly with the CCO boards.

Ngā koringa ā-muri / Next steps

36.     Council staff will draft the letters of expectations based on the resolutions of this committee and including only the issues that are approved by this committee. The mayor will send the letters to CCO board chairs during December 2018.

37.     Each CCO must provide a draft Statement of Intent to the council no later than 1 March 2019.

 

Ngā tāpirihanga / Attachments

There are no attachments for this report.    

Ngā kaihaina / Signatories

Author

Claire Gomas - Principal Advisor

Authorisers

Alastair Cameron - Manager - CCO Governance & External Partnerships

Phil Wilson - Governance Director

Matthew Walker - Group Chief Financial Officer

 


Finance and Performance Committee

20 November 2018

 

 

Disposal recommendations report - 34 Moore Street, Howick

 

File No.: CP2018/06356

 

  

Te take mō te pūrongo / Purpose of the report

1.       To obtain approval to dispose of one council-owned property that Panuku Development Auckland (Panuku) considers suitable for disposal.

Whakarāpopototanga matua / Executive summary

2.       For the 2018/2019 financial year, Panuku’s statement of intent (SOI) requires it to identify properties from within council’s portfolio that may be suitable for potential sale to a combined value of $30 million, and to sell $24 million of property by 30 June 2019.  Panuku has a particular focus on achieving housing and urban regeneration outcomes.  Identifying properties with potential for development or sale contributes to the Auckland Plan focus of accommodating the significant growth projected for the region over the coming decades.

3.       34 Moore Street, Howick is a commercial property that Auckland Council has advised does not need to be retained to deliver a council service. 

4.       Panuku has assessed the development potential of the property and considers it suitable for an exemplar mixed use or residential development which can contribute towards additional housing supply in Auckland.

5.       34 Moore Street was presented to the Finance and Performance Committee in 2013 and 2014.  In 2014 the Finance and Performance Committee deferred its decision on this property following a request from the Howick Local Board.  This was to provide to time for the Howick Village Centre Plan to be completed in order to identify the highest and best future use of this property.  The Howick Village Centre Plan has been completed and was adopted by the Howick Local Board in June 2017.

6.       The Howick Village Centre plan identifies 34 Moore Street as a strategically located site which, if developed, would provide the opportunity to support and enhance the Howick Village by offering additional residential dwellings and retail, improved connections and well-integrated public spaces.  A key action in the Plan is for the Howick Local Board to work with Panuku on the development of 34 Moore Street.

7.       The Howick Local Board resolved at its 15 October 2018 business meeting its continued opposition to the proposed disposal of 34 Moore Street.  At the request of the Howick Local Board, Panuku (and previously ACPL) have liaised with council departments multiple times since 2011 to ascertain if 34 Moore Street is required for a council purpose.  Council has consistently advised that no current or future council service use that is funded, or can realistically be funded in the future, has been identified for the property. 

8.       Council’s Community Facilities Asset Management Intelligence Support team has advised that should 34 Moore Street be retained, it requires urgent remedial work to be undertaken to ensure the structural integrity of the building and prevent further deterioration.  Should this property be retained, an estimate of the cost of these works is $800,000.  The Asset Management Intelligence Support team has further advised that these costs will escalate considerably should there be a delay in undertaking the remedial works required to retain this property.

9.       As 34 Moore Street is not required to be retained for a council purpose, Panuku recommends that it be divested for mixed use development purposes, with appropriate controls to ensure strategic outcomes in line with the Panuku SOI development objectives and the Howick Village Centre Plan, specifically town centre regeneration and housing outcomes.  Given the current shortfall in housing in Auckland, 34 Moore Street has the opportunity to provide much needed additional residential dwellings to the Auckland market.

 

Ngā tūtohunga / Recommendation/s

That the Finance and Performance Committee:

a)      approve subject to the satisfactory conclusion of any required statutory processes the disposal of the property at 34 Moore Street, Howick, comprised of an estate in fee simple more or less being Lot 4 DP 91111, Lot 3 DP 91111 and Lot 2 DP 91111 contained in computer freehold registers NA48B/510, NA48B/509 and NA48B/508 subject to appropriate controls to ensure housing outcomes in line with the Panuku SOI development objectives and the Howick Village Centre Plan;

b)      agree that final terms and conditions be approved under the appropriate delegations.

Horopaki / Context

10.     Panuku is required to undertake ongoing review of council’s property assets.  This includes identifying properties in the council portfolio that are no longer required for public work purposes and may be suitable for sale, and development if appropriate. 

11.     Once a property has been identified as no longer required for current public work purposes, Panuku engages with the council and its CCOs to establish whether the property must be retained for a strategic purpose or is required for a future funded public work.  Once a property has been internally cleared of any public work requirements, Panuku then consults with local boards, mana whenua and relevant ward councillors.  All sale recommendations must be approved by the Panuku Board before a final recommendation is made to Auckland Council’s Finance and Performance Committee.  The committee has the delegated authority to approve any proposed disposal.

Tātaritanga me ngā tohutohu / Analysis and advice

Property information

12.     34 Moore Street, Howick is a vacant commercial property located on a 3754m² site.  The property was acquired in the 1970’s for the purpose of accommodating the former Howick Borough Council offices.  In 1995 the property was no longer required for this purpose and was leased out on a commercial basis, primarily to NZ Police.  It has been vacant since 2016 and due to its age and condition requires extensive refurbishment.

13.     The Auckland Unitary Plan zoning is Business – Mixed Use.  The property has a 2017 capital valuation of $4.67 million.

14.     34 Moore Street is not subject to offer back obligations to the former owner in accordance with section 40 of the Public Works Act 1981.

15.     The proposed disposal of 34 Moore Street is not deemed to be significant under Auckland Council’s Significance and Engagement Policy.  The disposal of surplus assets to repay debt or fund new infrastructure is contemplated in Volume 2 of the council’s Long Term Plan.

16.     Images of the property are included as Attachment A to this report.

Internal consultation

17.     Internal consultation with council business units and CCOs for this property commenced in 2011 and has been revisited in 2013, 2017 and 2018.  No alternative public work use has been identified.  The following advice has been received from council departments.

18.     The council’s Heritage team advised that 34 Moore Street is not considered to be a heritage building and is unlikely to meet the criteria for scheduling in the Auckland Unitary Plan.  An archaeological assessment reported that there are no recorded archaeological or other historic heritage sites located within 80 metres of the property.

19.     The council’s Community Leasing team advised there is no requirement for the property in its leasing portfolio.  The Community Leasing team undertook an expressions of interest process for potential community use of 34 Moore Street in March 2017.  No expressions of interest were received from the community as part of that process.

 

 

20.     The councils’ Community Places team advised there is no requirement for 34 Moore Street for casual bookable space.  The 2017 Howick Information Centre Review and Community Needs Assessment Report explored the requirements for and availability of casual and permanent community space in the Howick (and slightly wider) area.  The report found that there is not a shortage of community facilities in the Howick area for community groups seeking casual (including regular) bookings.  Other community spaces in the Howick area are operating well below capacity.

21.     In 2018, at the request of the local board, council’s Corporate Property team assessed the suitability of 34 Moore Street as a local board office and concluded that due to its size, configuration and extensive fit out costs as well as ongoing operational costs, the property is not a viable option for a local board office.

Housing opportunity

22.     Panuku has identified Howick as being a “Support” location within its development programme.  As 34 Moore Street is not required for a council service use, Panuku has assessed the development potential of it and considers it suitable for an exemplar mixed use or residential development, in line with its development objectives.  The development of the property is supported in the Howick Village Centre Plan, specifically the opportunity this property provides for additional residential dwellings, retail and well-integrated public spaces[1] in the Howick Village.

23.     Given the current shortage of residential dwellings in Auckland, this property provides an opportunity to deliver much needed additional residential dwellings to the Auckland housing market, in accordance with the Panuku development objectives and the Auckland Plan.  The development of this property also achieves some of actions and outcomes envisaged in the Howick Village Centre Plan.

Options to retain property

24.     If 34 Moore Street is retained as a community facility or for community leasing purposes, Auckland Council will either have to provide unbudgeted capex and opex not forecasted in the LTP, or funding will need to be reallocated from higher priority planned and funded community facilities in other parts of the region to meet the operational costs of 34 Moore Street. 

25.     There are issues with the structural integrity of this building.  Required and recommended remedial works to enable 34 Moore Street to be fit for leasing are estimated to be approximately $800,000, and are expected to increase should these works be further deferred.  Further details about these costs are set out in paragraphs 50 and 51 of this report.

26.     Panuku has managed 34 Moore Street through a number of deferred decisions relating to its future.  The uncertainty about the future of this property has resulted in difficulties in obtaining a long term commercial tenant and provide revenue to our shareholder.  Should the Finance and Performance Committee decline a disposal of the 34 Moore Street for housing purposes, the Committee is requested to provide clear instruction on the future management of the property, including a defined public work use or if it is to be commercially leased on a long term basis; confirmation of budgets to undertake urgent remedial works required to retain the property; or if there is a defined strategic purpose to hold the property and the timeframes the property will be held in council ownership.

Ngā whakaaweawe ā-rohe me ngā tirohanga a te poari ā-rohe /
Local impacts and local board views

27.     Local boards are informed of the commencement of the rationalisation process for specific properties.  Following the close of the EOI period, relevant local boards are engaged with.  Panuku attend workshops with the relevant local board and provide information about properties being rationalised in its local board area.  A report is subsequently prepared for the local board business meeting so that its views can be formalised.

28.     The Howick Local Board resolved in June 2013 its opposition to the disposal of 34 Moore Street on the basis that it views the property as being of strategic importance to the Howick Village and considers that the property should be held for an as yet unidentified strategic purpose or used to deliver a community service.

29.     In 2013 the local board submitted a business case to support retention of the property.  An assessment by the Portfolio Review Steering Group (PRSG) declined the business case, advising it lacked sufficient financial analysis and evidence-based rationale to support retention of the property.  A further PRSG review of the business case following the Strategy and Finance Committee’s 4 July 2013 meeting confirmed the conclusion of the previous assessment.

30.     The 4 July 2013 Strategy and Finance Committee meeting resolutions are included in Attachment B to this report.

31.     In 2014, at the request of the local board, the Finance and Performance Committee agreed to defer its decision on the property pending completion of the Howick Village Centre Plan in order to identify the highest and best future use for the property.

32.     The 16 April 2014 Finance and Performance Committee meeting resolutions are included in Attachment C to this report.

33.     The Howick Village Centre Plan was adopted by the Howick Local Board in June 2017.  The plan describes 34 Moore Street as a key site in a strategic location, offering an opportunity to create building frontage onto Fencible Drive which would further develop the village centre.  Any future development of the site will support and enhance the village atmosphere, offering improved connections, additional retail and residential, and well-integrated public spaces[2]

34.     Key actions set out in the Plan are to ensure that future development of council owned sites within the village, in particular 34 Moore Street, enhance the village atmosphere[3], and for the local board to work with Panuku on the development of council owned sites within the village, particularly 34 Moore Street[4].

35.     Pages 1, 23, 24 and 36 of the Howick Village Centre Plan are included in Attachment D to this report.

36.     Following the completion of the Howick Village Centre Plan, Panuku attended three workshops with the Howick Local Board, most recently in September 2018.  Various options for the property, such as retaining the property for a public work, have been investigated and were discussed.  Previous and ongoing advice from council business units was reiterated; the property is not required by the council for a current or future public work that is funded or can realistically be funded in the future.


 

 

37.     At the workshop, Panuku set out the reasons it considers 34 Moore Street suitable for development and would be recommended to the council for disposal for this purpose.  If approved for disposal, development of the property would be controlled by a development agreement, ensuring high quality design and outcomes in line with the Howick Village Centre Plan and Panuku SOI development objectives.  Local board members requested involvement in any urban design brief.  Panuku agreed that constructive input from the local board into a design brief could be accommodated.

38.     Although consistent advice from council business units is that the property is not required for a public work, local board members provided feedback that they consider there is a need for community space at this property.  Panuku advised that if the Howick Local Board secures funding for a community space, consideration can be given to how this could be incorporated in a new development.

39.     At its 15 October 2018 business meeting, the Howick Local Board reconfirmed its opposition to the proposed disposal of 34 Moore Street, resolving that the property is viewed as being strategic due to its location; that a full strategic analysis was not undertaken as part of the Howick Village Centre Plan; that the board has identified uses for the property that are not council public work uses; requests the opportunity to undertake additional future use feasibility assessments and that the local board could potentially fund or part fund the additional feasibility assessments.

40.     The Howick Local Board’s 15 October 2018 business meeting resolutions are included in Attachment E to this report.

41.     As part of Panuku’s due diligence, it has reviewed the 2011, 2014 and 2017 Howick Local Board Plans.  34 Moore Street is not specifically mentioned in the Howick Local Board Plan, and the development of a multi-use community facility within the Howick Village is not stated as a priority outcome in the Howick Local Board Plan, nor is it a local board initiative. 

42.     A review of the Howick Information Centre Review and Community Needs Assessment Report identifies that the Howick Village area has an existing high level of provision, with three council-owned community facilities available to the local community for casual (one-off and regular) bookings.  There are approximately 74 community leases to groups in the Howick Local Board area, including a number in the Howick Village area with the potential for space-sharing capacity, including for casual bookings.

Tauākī whakaaweawe Māori / Māori impact statement

43.     Māori have an active and specific role in Auckland’s open spaces, including kaitiakitanga (guardianship) of our land and marine resources.  Land has a specific role in protecting, enabling and building Māori social and cultural capital. Marae, kohanga reo, and other Māori entities have been established on reserve status land, offering spiritual, cultural, as well as a range of social, educational, health and justice services.

44.     The importance of effective communication and engagement with Māori on the subject of land is understood.  Panuku has a robust form of engagement with mana whenua groups across the region.  Each relevant mana whenua group is contacted independently regarding council-owned land subject to rationalisation and requested to give feedback.

45.     Panuku’s engagement invites mana whenua to respond with any issues of particular cultural significance the group would like to formally express in relation to the subject properties.  We also request notes regarding any preferred outcomes that the group would like Panuku to consider in our formal reporting to council.  Possible outcomes could include commemoration or physical acknowledgment in the form of plaques or other mutually agreed means of recognition. 

46.     Mana whenua groups are also invited to express potential commercial interest in the subject sites.  In the event the sites are approved for sale, all groups will be alerted of the decision, and all groups are alerted once a property comes on the market.

 

 

47.     11 iwi authorities were contacted regarding the potential sale of 34 Moore Street, Howick. 

The following feedback was received.

a)   Ngāti Whatua Orakei

Ngāti Whatua Orakei advised there are no site specific cultural significance issues and registered a commercial interest.  If approved for disposal, Panuku will follow up with Ngāti Whatua Orakei on potential commercial opportunities.

b)   Te Kawerau a Maki

Te Kawerau a Maki advised there are no site specific cultural significance issues and registered a commercial interest.  If approved for disposal, Panuku will follow up with Te Kawerau a Maki on potential commercial opportunities.

c)   Ngāi Tai ki Tāmaki

No feedback was received regarding the subject property.

d)   Ngāti Tamaoho

Ngāti Tamaoho advised there are no site specific cultural significance issues.

e)   Te Akitai – Waiohua

No feedback was received regarding the subject property.

f)    Ngāti Te Ata Waiohua

Ngāti Te Ata Waiohua advised there are no site specific cultural significance issues.

g)   Ngāti Paoa

Ngāti Paoa advised there are no site specific cultural significance issues and registered a commercial interest.  If approved for disposal, Panuku will follow up with Ngāti Paoa on potential commercial opportunities.

h)   Ngaati Whanaunga

No feedback was received regarding the subject property.

i)    Ngāti Maru

No feedback was received regarding the subject property.

j)    Ngāti Tamatera

No feedback was received regarding the subject property.

k)   Patukirikiri

No feedback was received regarding the subject property.

Ngā ritenga ā-pūtea / Financial implications

48.     Capital receipts from the sale of properties not required by Auckland Council contribute to Auckland Plan outcomes and the LTP by providing the Council with an efficient use of capital and prioritisation of funds to achieve its activities and projects.  In the 2018/2019 financial year, the LTP has forecast the disposal of non-strategic assets to the value of of $24 million.

49.     In accordance with the Local Government Act 2002, the annual statement of intent states the activities and intentions of Panuku, the objectives that those activities will contribute to and performance measures and targets as the basis of organisational accountability.  For the 2018/2019 financial year Panuku is required to identify properties from within council’s portfolio that may be suitable for potential sale to a combined value of $30 million and to sell $24 million of property by 30 June 2019.

 

 

50.     Council’s Community Facilities Asset Management Intelligence Support team have advised that works to 34 Moore Street need to be undertaken as soon as possible to ensure the structural integrity of the building and prevent further deterioration.  Required and recommended works are estimated to be approximately $800,000, including invasive inspection and works to remediate weather tightness issues to the property’s roof, timber walls and window framing. 

51.     The consequences of not undertaking either the required works or the recommended works will further accelerate deterioration of the defective areas and significantly increase future costs to remediate the property.  Any interior refurbishment of 34 Moore Street to the standard expected for a property in the community leasing, community places portfolio or for commercial leasing purposes would be extensive and is recommended for deferral until the weather tightness issues have been resolved.  

52.     Ongoing operational costs for the property, including utilities, rates, and repairs and maintenance range from $25,000 to $57,000 per annum depending on occupancy.

Ngā raru tūpono / Risks

53.     34 Moore Street is not required for a council service use.  The following are potential risks of retaining 34 Moore Street:

·    Auckland Council not realising the approximate $4.67 million value from the sale of the property;

·    Auckland Council incurring the cost of approximately $800,000 of unplanned, unfunded remedial works to ensure the structural integrity of the building and prevent further deterioration;

·    a lost opportunity to develop the property to deliver additional residential dwellings in line with the Panuku development objectives, the Auckland Plan and at a time of a major housing shortage in Auckland;

·    a lost opportunity to develop the property and enhance the Howick Village atmosphere in line with outcomes/actions set out in the Howick Village Centre Plan;

·    if 34 Moore Street is retained as a community facility or for community leasing purposes, the need to either provide unbudgeted operational expenditure not forecasted in the LTP, or to reallocate funding from higher priority planned and funded community facilities in other parts of the region to meet the capex and opex costs of 34 Moore Street;

·    an over provision of community space in the Howick Local Board area relative to other parts of the region.

Ngā koringa ā-muri / Next steps

54.     Should the Finance and Performance Committee approve the proposed disposal of 34 Moore Street, Panuku will dispose of this site in a manner which achieves additional housing and provides the strategic outcomes envisaged in the Howick Village Centre Plan.

55.     There has been historical interest from iwi groups and from the public in acquiring the property.  This will be explored further should the Finance and Performance Committee approve the proposed disposal.

56.    Should the Finance and Performance Committee not approve the disposal of 34 Moore Street, clear direction is sought on the future management of this property, including the reason and timeframe for retaining the property and the provision of a budget to complete the urgent remedial works required to ensure the structural integrity of the building and prevent further deterioration, estimated to cost approximately $800,000.

 

Ngā tāpirihanga / Attachments

No.

Title

Page

a

Images of 34 Moore Street, Howick

37

b

Strategy and Finance Committee meeting 4 July 2013 minutes extract

39

c

Finance and Performance Committee meeting 16 April 2014 minutes extract

43

d

Howick Village Centre Plan extract

49

e

Howick Local Board meeting 15 October 2018 minutes extract

53

Ngā kaihaina / Signatories

Author

Anthony Lewis - Senior Advisor, Portfolio Review, Panuku Development Auckland

Authorisers

Rachel Hume - Team Leader Portfolio Review, Panuku Development Auckland

Marian Webb - Manager Portfolio Strategy, Panuku Development Auckland

David Rankin - Chief Operating Officer, Panuku Development Auckland

Matthew Walker - Group Chief Financial Officer

 


Finance and Performance Committee

20 November 2018

 

 


Finance and Performance Committee

20 November 2018

 

 


 


 


Finance and Performance Committee

20 November 2018

 

 


 


 


 


 


 


Finance and Performance Committee

20 November 2018

 

 


 


Finance and Performance Committee

20 November 2018

 

 


Finance and Performance Committee

20 November 2018

 

 


Finance and Performance Committee

20 November 2018

 

 


Finance and Performance Committee

20 November 2018

 

 

Disposal of Corporate Accommodation, Corporate Property Portfolio Strategy

 

File No.: CP2018/20482

 

  

Te take mō te pūrongo / Purpose of the report

1.       To amend the resolution of the Finance and Performance Committee approving the disposal of seven Corporate Accommodation properties to:

·    include a parcel of the Mayoral Drive car park which was omitted from the original resolution; and

·    specify that Panuku Development Auckland Limited (Panuku) will transact the disposal of these properties.

Whakarāpopototanga matua / Executive summary

Mayoral Drive car park

2.       The car park located at 4-10 Mayoral Drive was approved for sale as part of the Corporate Accommodation strategy.  A parcel of land which comprises part of this property was inadvertently omitted from the recommendation and subsequent resolution approving the divestment of the 4-10 Mayoral Drive car park.  The legal address of this parcel of land is 32-42 Wellesley Street West, Auckland and it comprises 453m2.  We seek approval to include 32-42 Wellesley Street West, Auckland as part of the divestment of the Mayoral Drive car park which has already been approved for sale.

3.       Upon completion of the City Rail Link Aotea station box at the Mayoral Drive car park site, a stratum title for the station box will be transferred to City Rail Link Limited pursuant to the ‘Project Delivery Agreement’ for the City Rail Link dated 30 June 2017 (as approved by Governing Body on 29 June 2017 (resolution number GB/2017/72)).  Following this, we intend to divest the balance of the Mayoral Drive car park site including the air rights. 

Panuku to transact the disposals

4.       The Corporate Property report to the Finance and Performance Committee intended for Panuku to transact the disposal of the Corporate Accommodation sites approved for sale as the agent for Auckland Council.  However the resolution did not specify this.  Due to this, we seek to amend the resolution to provide that the final terms and conditions of sale of the Corporate Accommodation properties approved for disposal by the Finance and Performance Committee be approved by Panuku, under its appropriate delegations. Panuku would therefore be authorised to enter into the required sale documentation.

 

Ngā tūtohunga / Recommendation/s

That the Finance and Performance Committee:

a)      amends resolution number FIN2018/73 by delegating authority to Panuku Development Auckland Limited to approve the final terms and conditions of sale, and to enter into the required sale documentation, for the following properties in accordance with Panuku Development Auckland Limited’s internal delegations and subject to the satisfactory conclusion of any required statutory processes:

i)        approximately 4,691m2 (subject to survey) of land at 4-10 Mayoral Drive and the balance of 32-42 Wellesley Street West, Auckland which is not to be transferred to City Rail Link Limited, comprised of an estate in fee simple more or less being the following:

·    4-8 Mayoral Drive, Auckland being Lot 15, Lot 18 and Lots 23-25 DP 21520 and Part Lot 21 DP 212520, contained in computer freehold register NA1589/36;

·    10 Mayoral Drive, Auckland being Section 1 Survey Office Plan 54203, contained in computer freehold register NA75B/323;

·    10A Mayoral Drive, Auckland being Allotment 26-27 Section 31 City of Auckland, contained in computer freehold register NA1193/78; and

·    the balance of 32-42 Wellesley Street West, Auckland being Lot 19 DP 21520 contained in computer freehold register NA485/235 which is not to be transferred to City Rail Link Limited;

ii)       approximately 4,841m2 (subject to survey) of land and associated buildings at 35 Graham Street, Auckland, comprised of an estate in fee simple more or less being Lot 1 DP 47079 and Lot 1 DP 68194 and Part Allotment 9-10 Section 20 Suburbs of Auckland, contained in computer freehold register NA97B/101; and

iii)      an approximate 7,200m2 (subject to survey) portion of the overall 16,164m2 (subject to survey) of land and the associated “Admin” building at 6 Henderson Valley Road, Henderson, comprised of an estate in fee simple more or less being Lot 2 DP 370255, contained in computer freehold register 284768. Note that the residual land area is intended to be sub-divided for the purposes of CRL (approximately 2,100m2), retained ownership of the “Civic” building by council (approximately 1,100m2), roading and Japanese Gardens to be vested (approximately 5,764m2); and

iv)      approximately 910m2 (subject to survey) of land and associated buildings at 4 Osterley Way, Manukau, comprised of an estate in fee simple more or less being Part Lot 47 DP 69242, contained in computer freehold register NA67C/986; and

v)      approximately 19,305m2 (subject to survey) of land and associated buildings at 50 Centreway Road, Orewa, comprised of an estate in fee simple more or less being Lot 1 DP 147350, contained in computer freehold register NA87D/294; and

vi)      an approximate 2,550m2 (subject to survey) portion of the overall approximately 5,059m2 (subject to survey) of land and associated buildings at 35 Coles Crescent, Papakura, comprised of an estate in fee simple more or less being Allotment 3-4 and Allotment 4A Section 2 Village of Papakura, contained in computer freehold register NA521/186. Note that the residual land area is intended to be sub-divided for the purposes of a reserve containing the historic Centennial House, the time capsule and the playground; and

vii)     approximately 13,090m2 (subject to survey) of land and associated buildings at 82 Manukau Road, Pukekohe, comprised of an estate in fee simple more or less being Lot 1 DP 99706, contained in computer freehold register NA54B/1241.

 

Ngā tāpirihanga / Attachments

There are no attachments for this report.    

Ngā kaihaina / Signatories

Authors

Letitia Edwards - Team Leader Portfolio Review, Panuku Development Auckland

Marian Webb – Manager Portfolio Strategy and Business Development, Panuku Development Auckland

Rod Aitken – Head of Corporate Property

Authorisers

David Rankin - Chief Operating Officer, Panuku Development Auckland

Matthew Walker - Group Chief Financial Officer

 


Finance and Performance Committee

20 November 2018

 

 

Update on Speedway Relocation

 

File No.: CP2018/20014

 

  

Te take mō te pūrongo / Purpose of the report

1.       To provide an update and seek approval to proceed with the proposed move of speedway from Western Springs to Colin Dale Park.

Whakarāpopototanga matua / Executive summary

2.       It has been long signalled the desire to move speedway from its current Western Springs site, and Regional Facilities Auckland (RFA) and speedway promoters have investigated a number of alternative sites.  Particularly after the implementation of an Enforcement Order in 2005 resulted in the number of speedway events being capped at 12 per year with two practice sessions.

3.       Springs Promotions Ltd (SPL) approached Council in regard to moving speedway events from Western Springs to Colin Dale Park in Manukau.  Subsequently these parties (with RFA) entered into a Memorandum of Understanding (MoU) in June 2018 to investigate providing the opportunity for SPL and its speedway events to relocate from Western Springs Park to Colin Dale Park.

4.       The MoU was signed on 8 June 2018 and set a 90-day timeframe to assess the feasibility of moving speedway to Colin Dale Park.  The MoU has been extended to 23 November 2018.

5.       This investigation identified that speedway could move to Colin Dale Park.

6.       The proposed move of speedway from Western Springs to Colin Dale Park is supported by the Parks, Sports and Recreation department for a number of reasons, including aligning with plans to create concentrated provision of motorsport activities, the location would be more appropriate for motorsport activity and would build on the earlier investment in Colin Dale Park to create a regional motorsport precinct.  This is further detailed in paragraph 27. 

7.       The next steps (as indicted at the Finance and Performance workshop on 11 September 2018) were to undertake a high-level cost assessment and negotiate a conditional development agreement (DA) which would set out the responsibilities of each party. 

8.       The purpose of this report is to seek approval to proceed with the proposal to move speedway from Western Springs to Colin Dale Park and seek budget for this. 

9.       Colin Dale Park is currently a stalled and uncompleted regional motorsport park with no service connections (Attachment A).  The development of the park could not be completed as envisioned due to a council wide capex review in 2014.  At that time, the Local Board decided to contribute $2.8 million through debt funding to complete minimal but necessary works (Finance and Performance forgave the remainder of this debt in May 2018).  The full cost for completion of landlord works at that time was $6.3 million, the cost is now estimated at $9.9 million based on concept design (including $2 million of contingency).  If this committee endorses proceeding with the proposal, detailed design will be undertaken to refine this cost. 

10.     The budget this paper is seeking $5 million to be transferred from RFA and then $4.9 million in the 2019/2020 Annual Plan for landlord enabling work to complete the regional motorsport park for the benefit of the whole of Colin Dale Park.  These include completing the parking area and internal roads, providing park signs, providing lighting in public areas, installing the bore and providing services to the site. 

11.     Landlord works were not contemplated for in the MoU.  The MoU stated council would provide “$10 million plus GST, to construct the speedway track and stadium at Colin Dale Park” and would endeavour to procure “additional grant of funding to SPL of $2.5 million to construct the speedway track and stadium at Colin Dale Park”, while SPL would “be responsible for securing all additional funding required for SPL’s relocation to Colin Dale Park”.  After concept design and assessment of costs, it has been identified that an additional $20 million is being sought in the 2019/2020 Annual Plan to complete enabling works for speedway such as earthworks to create the track, bringing services to the site, provision of toilets, pits for contestants, and moving the light poles and fence from Western Springs.  This would enable speedway events to occur which met Speedway New Zealand’s standards.  Any additional work for the “fan experience” (such as a clubrooms, food and beverage provision, large screens) would be funded by the speedway promoter.  It is proposed that this amount acts as a cap, and through detailed design and aggressive value management this number is refined and the ultimate cost is reduced. 

12.     Failure to make the move to Colin Dale Park in the timeframes contemplated would see speedway ceasing to operate at Western Springs after March 2020, in accordance with a resolution from RFA’s Board. 

13.     The Ōtara-Papatoetoe Local Board is highly supportive of speedway moving to Colin Dale Park.  If endorsed, staff would then take the project to the Local Board for their formal approval in accordance with their delegation.

Ngā tūtohunga / Recommendation/s

That the Finance and Performance Committee:

a)      endorse council entering into a conditional development agreement for the relocation of speedway events to Colin Dale Park.

b)      approve the continued work to enable the relocation of speedway events from Western Springs to Colin Dale Park.

c)      approve the transfer of an existing $5 million capital expenditure budget in 2018/2019 from Regional Facilities Auckland for enabling landlord works.

d)      note there will be an additional capital budget request to a maximum of $4.9 million for enabling landlord works as part of the 2019/2020 Annual Plan process.

e)      note there will be an additional capital budget request to a maximum of $20 million for construction of the speedway track and basic amenities for speedway events as part of the 2019/2020 Annual Plan process.

Horopaki / Context

14.     Colin Dale Park was purchased by Manukau City Council (MCC) in 2003 for motorsport activities, following a regional process which identified a lack of space for motorsport activities.  At that time, it was anticipated that speedway would move here. 

15.     Colin Dale Park is approximately 56 hectares in size and zoned for open space.  The motorsport precinct is 44.3 hectares in size, it is a Recreation Reserve and is the subject of this report.  There is 2 hectares of esplanade reserve.  The remaining 10 hectares is Local Purpose Reserve.  It is currently vacant and has an agreement to lease signed between MCC and Te Ara Rangatu o Te Iwi o Ngᾱti Te Ata Waiohua Incorporated in October 2010.  Any future use of this site would need access across the wider site.

16.     Colin Dale Park has an Outstanding Natural Feature overlay across the southeastern corner of the park for the protection of the northern tuff edge of Pond Crater.  It is located 2.5 kilometres from the Auckland International Airport Limited (AIAL) runway and is located beneath the AIAL obstacle limitation surfaces overlay.  In addition, Watercare’s southwestern interceptor line crosses through the site near the western edge of the motorsport precinct boundary.

17.     The Ōtara-Papatoetoe Local Board has delegation to manage Colin Dale Park with the support of the Parks, Sports and Recreation department.  There is a motorsport user group management committee which generally meets monthly. 


 

18.     There are currently two commercial users operating on-site (jet sprint and motocross) with leases issued for three community groups to operate once their facilities are completed (off-road racing, radio controlled cars and BMX) and Kartsport Mt Wellington is currently negotiating a lease. 

19.     There are resource consents for the site issued in December 2014.  The development of the park was not completed as envisioned due to a council wide capex review in 2014.  The Local Board decided to contribute $2.8 million through debt funding (annually as $280,000 in perpetuity) to complete necessary works.  The full cost would have been $6.3 million. The Finance and Performance Committee made a decision in May 2018 to forgive the remaining debt obligation.  The Local Board has asked that Colin Dale Park be made a regional park, however this has not been determined.  There is no available budget to complete the regional motorsport park at Colin Dale Park. 

Tātaritanga me ngā tohutohu / Analysis and advice

20.     The proposal is to undertake preparation works in 2019 and relocate speedway from Western Springs to Colin Dale Park during 2020.  It is anticipated that:

a)   A world class motorsport venue would be created;

b)   There would be the ability to increase speedway events from the current 12 to 20 or 22 each summer with two practice events.  (Noting that a potential event schedule has not been finalised);

c)   It would operate on Friday and Saturday (as it does currently).  It is anticipated that there could be a limit on the number of vehicles on a Friday night due to the existing busy road environment in the vicinity of Colin Dale Park;

d)   Similar operating hours of 6.00pm to 10.30pm with competitors and crew arriving from 2pm;

e)   Spectator numbers are expected to be in the range of 6,000 to 8,000; 

f)    Traffic assessment has identified that, at maximum capacity, this would be 2,370 vehicles.  There are 848 consented carpark spaces at Colin Dale Park (but only 238 built) and some overflow parking would be required to occur in Puhinui Reserve;

g)   An incorporated society, charity trust or similar organisation would hold the lease.  This is currently being worked through and will be known before a lease is entered into; 

h)   The proposed lease term would be 10 years with two rights of renewal for 10 years each.  The Parks, Sports and Recreation department advise that the proposed lease term is not dissimilar to some leases for other large developments on park land, such as hockey, clubrooms and surf clubs; and

i)    During the off-season, other organisations and community groups would be able to hire the clubrooms and/or the inner pitch. 

21.     During the MoU period, a number of locations within Colin Dale Park were considered for speedway and these were discussed with the Ōtara-Papatoetoe Local Board, Te Ara Rangatu o Te Iwi o Ngᾱti Te Ata Waiohua Incorporated and the Colin Dale Park motorsport user group management committee.  A preferred location was chosen (see Attachment B) because it minimized sun strike for the speedway track, had easy access for transport and services, avoided a number of key constraints (such as the outstanding natural feature), and would not result in existing lessees needing to relocate.  The preferred site has originally been intended for Kartsport Mt Wellington, but for their own reasons Kartsport did not sign the lease and has not developed the site.  In June 2018, Kartsport offered to instead accept a lease and develop an alternative (vacant) site on the western edge of the motorsport precinct. 

 

 

22.     A number of investigations were completed within the MoU period in order to assess the feasibility of moving speedway to Colin Dale Park.  These were:

-     Traffic;

-     Aeronautical; and

-     Access to services.

23.     These feasibility assessments identified that it is possible for speedway to relocate to Colin Dale Park with some workable conditions.  Since the Finance and Performance workshop on 11 September 2018, a high level cost estimate has been undertaken and council entered into negotiations with the speedway promoter.  The MoU date was extended to cover the negotiation period.  If this committee endorses this report, council will sign a conditional development agreement (DA) with SPL for the development and if all these conditions are met, then a lease for the preferred location can be entered into. 

24.     The DA will be conditional on several factors, as well as governance and statutory requirements, including a satisfactory endorsement from this committee and approval from Ōtara-Papatoetoe Local Board.  It would also set out the responsibilities of each party.  The draft DA sets out that council will:

-     Undertake various enabling landlord works which were originally planned (and consented) for the motorsport precinct in Colin Dale Park.  These include completing the parking area and internal roads, providing lighting in the public areas, installing the bore and providing services to the site.  It will also enable the stopping of the road through Pond Crater and enabling future restoration of this feature, with access to Puhinui Reserve through Colin Dale Park.  These works are required to create a suitable motorsport venue and will be utilised by users and lessees of Colin Dale Park and Puhinui Reserve;

-     Seek to amend (or obtain new) resource consent where necessary for these landlord works.  For example, the time period of the existing resource consent for earthworks will lapse soon and earthworks are required to complete the carparking and internal roading network, as well as for several lessee to complete their tracks;

-     Obtain budget and governance approval;

-     Seek to change the delegation from Ōtara-Papatoetoe Local Board to Governing Body to more appropriately reflect the regional nature of motorsport activities.  This takes into account the Local Board’s desire for regional funding set out in their Local Board Plan and their One Local Initiative (Oli) to the Long-term Plan 2018-2028.  As part of this investigation, consider whether changing from the Reserve Act status to Local Government Act 2002 (LGA) for Colin Dale Park would be more appropriate due to the mixed recreational and commercial activities on the site.  As part of this, consider whether it would be appropriate to seek protection in perpetuity from disposition under s139 of the LGA.  

-     Continue to engage with Ōtara-Papatoetoe Local Board, Te Ara Rangatu o Te Iwi o Ngᾱti Te Ata Waiohua Incorporated and Colin Dale Park motorsport user group management committee, mana whenua for the area, and other key stakeholders such as the New Zealand Transport Agency, Auckland Transport and AIAL;

-     Provide service connection to the boundary;  

-     Ensure the speedway design continues to meet Civil Aviation Authority and airport obstacle limitation surfaces thresholds; and

-     Move the lights and fencing from Western Springs.

25.     The draft DA states, in return, SPL will:

-     Seek resource consent for its proposed development including its clubrooms building, earthworks and traffic movements;

-     Manage the relationship with drivers and the fan-base;

-     Co-fund the development alongside council;

-     Appoint a project manager to manage the planning and build;

-     Construct the clubrooms, spectator facilities and a world class track;

-     Connect their site to the services;

-     Investigate what structure will hold the lease, such as an incorporated society or charity, before the lease is entered into;

-     Consider social outcomes and how best to enable multi-use of their facility;

-     Work with the current leaseholders at Colin Dale Park including coordinating the yearly event calendar; and

-     Install the lights and fencing that is moved from Western Springs.

26.     Ancillary to this, it is anticipated that RFA would extend SPL’s lease at Western Springs (expected to be another year) to enable SPL to have time to undertake preparation and construction work at Colin Dale Park. 

27.     The proposed move of speedway from Western Springs to Colin Dale Park is supported by the Parks, Sports and Recreation department for the following reasons: 

-     It aligns with the key goal of the Auckland Sport Sector: Facility Priorities Plan 2017 (Facilities Priorities Plan) which is to “promote and prioritise investment into partnerships to provide multisport and multi-use recreation and sport facilities”.  The Facilities Priorities Plan provides guidance on how to ensure our existing facilities are fully utilised, fit for purpose and managed efficiently to maximise the return on investment.  It uses motorsports as an example of a ‘concentrated provision model’ which have the advantages of being cost effective, leveraging off the use of joint facilities, zoned appropriately and better quality facilities.

-     Adopting the concentrated provision model, Colin Dale Park and its existing users will benefit from the increased participant and visitor numbers, enhanced infrastructure, increased profile, improved security, and sharing of facilities and resources that will be achieved with the introduction of speedway. 

-     The move of speedway from Western Springs to Colin Dale Park would enable the completion of the regional motorsport park at Colin Dale Park which was envisaged in 2003.  This would make the most out of MCC and the Ōtara-Papatoetoe Local Board’s early investment in the park. 

-     It would also enable the moving of speedway events from an urban area and the sport would then be able to occur at full capacity in the new location without the enforcement order limiting it to 12 events.

Ngā whakaaweawe ā-rohe me ngā tirohanga a te poari ā-rohe /
Local impacts and local board views

28.     Since 8 June 2018, staff have presented to workshops of the Ōtara-Papatoetoe Local Board a number of times.  Staff most recently updated the local board on 6 November 2018. 

29.     Ōtara-Papatoetoe Local Board is highly supportive of speedway moving to Colin Dale Park and through the anticipated landlord work, realising the original 2003 vision of a regional motorsport park. 

30.     However the local board is clear that future funding for Colin Dale Park should be from a regional fund as users of the park come from all over Auckland and the majority of users are from outside the local board area.  It is anticipated that this would be exasperated by speedway.  This is set out in their Local Board Plan 2017:

We currently fund the new Colin Dale Motorsport Park which serves communities outside Ōtara-Papatoetoe. We will advocate to the Governing Body for it to be taken over and managed as a regional park so that it is funded in a way that recognises its regional benefit.

31.     If this committee endorse this report, then staff will immediately take the project to the Local Board for their formal approval in accordance with their delegation.

Tauākī whakaaweawe Māori / Māori impact statement

32.       It is understood that the Puhinui area has significant cultural, spiritual and historical values to mana whenua. 

33.     Ngti Ata has an agreement to lease land which forms part of Colin Dale Park (but is not within the motorsport precinct).  As such, staff have engaged with rangatira of Te Ara Rangatu o Te Iwi o Ngᾱti Te Ata Waiohua Incorporated on the proposal and kept them informed of developmentsNgᾱti Te Ata is interested in how future developments within the motorsport precinct could connect into future development on their site.  If this committee endorses this report, further engagement is planned to investigate how the enabling landlord works could assist with Nᾱati Te Ata’s development options.  

34.     Next staff will engage with all mana whenua through the Parks, Sports and Recreation Mana Whenua Forum for central and south.  This would include the three iwi (Te Ākitai Waiohua and Ngᾱti Tamaoho, as well as Ngᾱti Te Ata) who expressed interest in being involved in the formal hearing process for the rezoning of Colin Dale Park in 2014.  It is on the agenda for the next Mana Whenua Forum on 28 November 2018.

Ngā ritenga ā-pūtea / Financial implications

35.     Development of motorsport precinct in Colin Dale Park was not completed as envisioned due to a council wide capex review in 2014.  The Local Board decided at that time to contribute $2.8 million to complete some of the landlord works.  The full cost would have been $6.3 million at that time and it is anticipated to be $9.9 million now (based on concept design). 

36.     To relocate speedway from Western Springs to Colin Dale Park and to complete the enabling landlord works required, the following funding is sought:

-     transfer of $5 million capital expenditure budget in 2018/2019 from RFA.  This is an existing budget; 

-     will be an additional capital budget request to a maximum of $4.9 million for enabling landlord works as part of the 2019/2020 Annual Plan process; and

-     there will be an additional capital budget request to a maximum of $20 million for construction of the speedway track and basic amenities for speedway events as part of the 2019/2020 Annual Plan process.

37.     Council will cap their financial contribution at $29.9 million (including the $5 million to be transferred from RFA) which would cover landlord enabling work for the benefit of the whole of Colin Dale Park, and site enabling works for speedway such as earthworks, basic provision for events (pits and toilets), as well as moving the light poles and fence from Western Springs.  Additional work for the “fan experience” will be funded by the speedway promoter.  These costs have been identified through an assessment of the proposed development based on concept design.  If this committee endorses proceeding with the proposal, detailed design will be undertaken to refine this cost (for example, a geotechnical assessment will occur to determine if there is basalt rock and if not, this cost can be removed).  This process will be aggressively value managed and it is anticipated that the ultimate cost will be reduced.  At the same time, staff would seek to work with neighbouring developers to obtain efficiencies in infrastructure provision.

Ngā raru tūpono / Risks

38.     The key risks to be managed are:

-    Timing – it will be a tight timeframe to obtain approvals, resource consent and complete construction in order for speedway to move from Western Springs to Colin Dale Park by October 2020.  The majority of this risk sits with SPL who will be leading the move process, however council would need to undertake its tasks in a timely manner; 

-     Service connections – there is a significant cost in connecting Colin Dale Park to services and there is a risk that cost efficiencies cannot be made if no agreement is reached with neighbouring developers on timing and shared water and wastewater connections;

-     Traffic – the feasibility work undertaken has identified speedway can move from Western Springs to Colin Dale Park without adversely affecting the traffic environment if there are controls on traffic volumes on Friday nights.  It recommends the provision of an auxiliary left turn lane at the existing Prices Road/State Highway 20B intersection to accommodate the anticipated number of turning movements (subject to any potential upgrades of this intersection by other developments) and states Prices Road does not need upgrading “it is excepted the existing carriageway width and form will accommodation the anticipated number of vehicle movements.  However, approval will need to be obtained from the New Zealand Transport Agency and resource consent obtained for this factor;   

-     Financial – the costs of landlord works and the speedway build would be kept within the agreed cost envelopeCouncil will cap their financial contribution and any additional development for the “fan experience” will be funded by the speedway promoter.  A comprehensive detailed design process will be undertaken to further refine this cost; and

-     There is also the reputation risk to Auckland if this proposal cannot be completed. 

Ngā koringa ā-muri / Next steps

39.     If this committee endorses proceeding with the relocation of speedway from Western Springs to Colin Dale Park, the next steps would be:

-     Obtain Ōtara-Papatoetoe Local Board’s formal approval in accordance with their delegation;

-     Engage with iwi through the Mana Whenua Forum;

-     Request the Chief Executive to sign the DA;

-     Continue to engage with all other key stakeholders;

-     Seek a change to the delegations from Ōtara-Papatoetoe Local Board to Governing Body to more appropriately reflect the regional nature of motorsport activities.  It is anticipated that a report on this topic would go the Environment and Community Committee in the new year; 

-     As part of the above change, consider whether changing from the Reserve Act status to LGA for Colin Dale Park would be more appropriate due to the mixed recreational and commercial activities on the site; and

-     Undertake preparation work for resource consent application for landlord works.

 

Ngā tāpirihanga / Attachments

No.

Title

Page

a

Uncompleted Landlord Works at Colin Dale Park

65

b

Site Plan

67

Ngā kaihaina / Signatories

Author

Marguerite Pearson - Principal Advisor – Planning and Investment

Authorisers

John Duncan - Executive Direction, Auckland Investment Office
Matthew Walker - Group Chief Financial Officer

 


Finance and Performance Committee

20 November 2018

 

 

PDF Creator



Finance and Performance Committee

20 November 2018

 

 

PDF Creator



Finance and Performance Committee

20 November 2018

 

 

Transfers of land within the Council Group (Covering report)

 

File No.: CP2018/22002

 

  

 

Te take mō te pūrongo / Purpose of the report

1.       To provide advice on issues related to the ownership of waterfront land and related assets and the implications of any potential transfers of ownership within the council group.

Whakarāpopototanga matua / Executive summary

2.       This is a late covering report for the above item. The comprehensive agenda report was not available when the agenda went to print and will be provided prior to the 20 November 2018 Finance and Performance Committee meeting.

 

Ngā tūtohunga / Recommendation/s

The recommendations will be provided in the comprehensive agenda report.


Finance and Performance Committee

20 November 2018

 

 

Finance and Performance Committee - Information Report - 20 November 2018

 

File No.: CP2018/20435

 

  

Te take mō te pūrongo / Purpose of the report

1.       To receive a summary and provide a public record of memos or briefing papers for the Committee’s information and any other information that may have been distributed to committee members since 23 October 2018.

Whakarāpopototanga matua / Executive summary

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

3.       The following information-only report is attached:

·    Finance and Performance Committee Work Programme to 30 June 2019 (Attachment A)

4.       The following presentations/memos/reports were presented/circulated as follows:

·    23 October 2018 – Confidential Workshop – Tax Matters (no attachment)

·    23 October 2018 – Workshop – Council Controlled Organisations letters of expectation, statements of intent and quarterly reporting (Attachment B)

·    23 October 2018 – Workshop – Rating of Religious Premises (Attachment C)

·    6 November 2018 – Memorandum – Council submission on Tax Working Group – Interim Report (Attachment D)

5.       The workshop papers and any previous documents can be found on the Auckland Council website at the following link: http://infocouncil.aucklandcouncil.govt.nz/

·    at the top of the page, select meeting “Finance and Performance Committee” from the drop-down tab and click ‘View’

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

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

 

Ngā tūtohunga / Recommendation/s

That the Finance and Performance Committee:

a)      receive the information report – 20 November 2018.

 


 

 

Ngā tāpirihanga / Attachments

No.

Title

Page

a

Finance and Performance Committee Forward Work Programme to 30 June 2019

75

b

23 October 2018 – Workshop – Council Controlled Organisations letters of expectation, statements of intent and quarterly reporting (Under Separate Cover)

 

c

23 October 2018 - Workshop – Rating of Religious Premises (Under Separate Cover)

 

d

6 November 2018 – Memorandum – Council submission on Tax Working Group – Interim Report (Under Separate Cover)

 

     

Ngā kaihaina / Signatories

Author

Sandra Gordon - Senior Governance Advisor

Authoriser

Matthew Walker - Group Chief Financial Officer

 


Finance and Performance Committee

20 November 2018

 

 

 

Komiti ā Pūtea, ā Mahi Hoki
Finance and Performance Committee
FORWARD WORK PROGRAMME TO 30 JUNE 2019

 

The purpose of the Committee is to control and review expenditure across the Group to improve value for money; to monitor the overall financial management and performance of Auckland Council parent and Auckland Council Group; to make financial decisions required outside the annual budgeting processes and to perform the responsibilities of another committee, where it is necessary.

 

Detailed decisions are reported at the end of this document (Page 6 onwards)

Priorities for 2018/19 will be on initiatives which:

1.         Planning and Funding

2.         Reporting and Performance

3.         Value for money

4.         Operational

The work of the committee will:

1.    approve the Annual Plan 2019/2020 including financial policy, the consultation document and supporting information for recommendation to the Governing Body

2.    monitor achievement of financial and other measures of performance and services levels and recommend the Annual Report to the Governing Body

3.    approve acquisition and disposal of property related to the Committee’s responsibilities.

4.    review and approve financial policy and non-budgeted expenditure.

 

Lead

Area of work

Reason for work

Finance and Performance Committee role - decision or direction

Expected timeframes

2018                            2019

Q1
Jul-Sep
24 Jul
21 Aug
18 Sept

Q2
Oct-Dec
17 Oct
23 Oct
14 Nov
20 Nov
11 Dec

Q3
Jan-Mar
19 Feb
19 Mar
20 Mar

Q4
Apr-Jun
16 Apr
21 May
18 Jun
19 June

Planning and Funding

GM Financial Strategy & Planning

Annual Budget

Statutory process

Decision to agree to the Consultation items

Adopt Consultation Document to consult with Public Consultation runs

Hear feedback and deliberate budget scenarios

Decisions made for Annual Budget

Adopt final Annual Budget

 

Nov
Dec

Feb

19 Mar

Apr
May
June

GM Financial Strategy & Planning

Budget Update (as required).  This includes significant unbudgeted one-off expenditure.

Financial management

Decision to agree recommended budget changes outside of AP/LTP budgeting cycle

 

23 Oct
14 Nov
Dec

Feb
19 Mar

Apr
May
Jun

GM Financial Strategy & Planning

Development contributions policy

Statutory requirement to have a DC policy

·          Align capex figures from LTP

Note that the Governing Body has Agreed to consult on the proposed DC policy (18 October 2018).  The GB will Consult on draft Development Contribution policy (19 October 2018 – 15 November 2018).  The GB will Adopt the Development Contribution policy (13 December 2018)

Sep

 

 

 

GM Financial Strategy & Planning

Rating Policy and process

Rating

Workshop on approach to rating religious properties

(Potentially move into Annual Plan process)

Sep

23 Oct
20 Nov

 

 

GM Financial Strategy & Planning

Carry forwards for 2017/2018

Financial Management

Approving budget carry forwards for 2017/2018

 

17 Oct

 

 

GM Financial Strategy & Planning

Infrastructure funding and financing work with Treasury

Financial Management

Discuss ongoing work with central government on Crown Infrastructure Partners and Special Purpose Vehicles for major infrastructure projects – timing for committee as required

 

 

 

 

GM Financial Strategy & Planning and Treasurer and GM Financial Transactions

Treasury and debt management

 

Briefing on council debt

 

21 Nov

Feb

 

Auckland Investment Office

Dividend reinvestment plan

Auckland International Airport Limited Dividend Reinvestment Plan

Decision to agree required to approve Dividend Reinvestment Plan

 

 

Feb

 

GM Corporate Finance and Property

Weathertightness issues and provision

To provide an update on changes implemented to reduce the future risk of weathertightness claims as well as a summary of how the liability is calculated for accounting purposes

Review information

 

Dec

 

 

Executive Director, Auckland Investment Office

Colin Dale Park

Report on progress of the investigation and negotiations for Speedway (run by Springs Promotions Ltd) to move from Western Springs to Colin Dale Park.

Endorse the Heads of Agreement and

Approve to development costs.

 

20 Nov

 

 

Te Waka Anga Mua ki Uta

 

Māori Transformational Activity and Expenditure Report



Te Tiriti O Waitangi Audit Response Work Programme

To monitor progress on expenditure and delivery of Maori transformational activity (includes Te Toa Takitini) and on projects to deliver Māori outcomes.  This reporting will be carried out bi-annually

To monitor progress in responding to 3 yearly Te Tiriti O Waitangi audit

Receive generally no decisions

 

17 Oct

 

21 May


 


Lead

Area of work

Reason for work

Finance and Performance Committee role - decision or direction

Expected timeframes

 

2018                            2019

 

Q1
Jul-Sep
24 Jul
21 Aug
18 Sept

Q2
Oct-Dec
17 Oct
 23 Oct
14 Nov
20 Nov
11 Dec

Q3
Jan-Mar
19 Feb
19 Mar
20 Mar

Q4
Apr-Jun
16 Apr
21 May
18 Jun
19 Jun

 

Reporting and Performance

 

GM Corporate Finance and Property

Annual Report

·     Statutory requirement

·     NZX Announcement and release

·         Draft annual report and Summary on Performance - Sept

·     Interim audit report – Feb

Receive Annual report

Recommend to Governing Body for adoption

Note:  

·     NZX announcements are presented to the Audit and Risk Committee

·     There is a delegation from the Committee to Chair and Deputy Chair of Finance and Performance to recommend to the Mayor and CE to release the preliminary results to the NZ Stock Exchange so that Council can meet NZX reporting deadlines.

·     Formal adoption of annual report is by the Governing Body

Aug
Sept

 

 

 

 

GM Corporate Finance and Property

Half-yearly report

·     NZX listing requirement

Receive Half-yearly report

Approve for release

Note:  

·     NZX announcements are presented to the Audit and Risk Committee

·     There is a delegation from the Committee to Chair and Deputy Chair of Finance and Performance to recommend to the Mayor and CE to release the preliminary results to the NZ Stock Exchange so that Council can meet NZX reporting deadlines.

 

 

Feb

 

 

CCO/External Partnerships

Statements of Intent

·     Shareholder feedback on draft SOIs –Aug

·     Letters of Expectation for 2019/2020 SOIs – Nov

·     Shareholder comments on draft 2019/2020 SOIs - Apr

Agree 2019/2010 Letters of Expectation

 

Aug

23 Oct
11 Dec

 

Apr

 

Manager Corporate & Local Board Performance

Performance Reporting quarterly - parent

To monitor council parent financial and non-financial performance results

Receive generally no decisions

 

 

17 Oct
14 Nov

20 Mar

19 Jun

 

GM Financial Strategy & Planning

Performance Reporting quarterly – CCOs

To monitor CCO financial and non-financial performance results

Receive validate/challenge

 

 

17 Oct
14 Nov

20 Mar

19 Jun

 

GM Financial Strategy & Planning

Performance Reporting quarterly - group

To monitor Auckland Council group financial performance

Receive generally no decisions

 

 

17 Oct
14 Nov

20 Mar

19 Jun

 

Value for Money

 

GM Financial Strategy & Planning

Consideration and adoption of Group policy relating to Business Cases

 

Decision on whether to adopt a new policy

 

11 Dec

 

 

 

Operational

Panuku Development Auckland

Recommended disposals or acquisitions.  These reports are as required, but generally monthly.

·     Panuku is required through its SOI to identify and recommend to council properties that are surplus to requirements and can be considered for disposal.  These include general disposals to fund LTP projects.

·     Panuku recommends properties for acquisition and disposal to the committee for approval where they are located within a priority development location.

Decision to proceed with recommended disposals or acquisitions.

 

July
Sept

23 Oct
20 Nov
Dec

Feb
19 Mar

Apr
May
18 Jun

 

GM Corporate Finance and Property

Property portfolio

To provide an update on progress of the Corporate Property Portfolio roll out and where required seek approval for any property transactions

Regular reporting

 

20 Nov

19 Mar

18 Jun

 

Engineering & Technical Services / Treasury & Financial Transactions / Procurement

Consideration and adoption of Group policies for Performance Bonds

Mayoral Office request

Decide whether to amend current policy

 

 

Feb

 

 

CCO/External Partnerships

Auckland Regional Amenities Levy, MOTAT and Auckland War Memorial Museum Levies

Statutory process

·     RFA respond to draft levy for MOTAT and AWMM (on behalf of council)

·     December F&P - approve council submission to draft ARAFB Funding Plan

·     March F&P – approve annual funding levies for ARAFB, MOTAT, AWMM

·     March F&P (G Body) – approve ARAFB draft

·     May F&P – approve annual IMSB funding.

·     May and June 2019 - nine amenities present to F&P committee

Decision to approve submission on draft Funding Plan

Decision to approve levies

 

11 Dec

 

 

 

 

20 Mar

 

 

 

 

 

 

 

 

May
19 June

 

Parks, Sports and Recreation

Loan restructuring (committee dates as required)

Responding to proposals and recommendations

Decision to approve proposed restructuring

 

 

 

 

 

 

 

 


 

 

Detailed decisions - Komiti ā Pūtea, ā Mahi Hoki
Finance and Performance Committee
FORWARD WORK PROGRAMME TO 30 JUNE 2019

 

 

Lead

Area of work

Finance and Performance Committee role - decision or direction

Detailed decisions

 

Planning and Funding

 

GM Financial Strategy & Planning

Annual Budget

Decision to agree to the Consultation items

Adopt Consultation Document to consult with Public Consultation runs

Hear feedback and deliberate budget scenarios

Decisions made for Annual Budget

Adopt final Annual Budget

For information on the previous long-term/annual plan processes, please refer to the table at the end of this document.

 

GM Financial Strategy & Planning

Budget Update (as required).  This includes significant unbudgeted one-off expenditure.

Decision to agree recommended budget changes outside of AP/LTP budgeting cycle

For information on previous decisions, please refer to the table at the end of this document.

 

GM Financial Strategy & Planning

Development contributions policy

Agree to consult on the proposed DC policy

Consultation on draft Development Contribution policy (GB)

Adoption of Development Contribution policy (GB)

Reporting dates:

31/5/18 – Contributions Policy   FIN/2018/90 

Adopted by the Governing Body: 31/5/18  GB/2018/91

10/9/18 – Workshop on Development Contributions

 

GM Financial Strategy & Planning

Rating Policy and process

Workshop on approach to rating religious properties

(Potentially move into Annual Plan process)

23/10/18 – Workshop on the rating of religious use premises

 

GM Financial Strategy & Planning

Carry forwards for 2017/2018

Approving budget carry forwards for 2017/2018

17/10/18 – 2017/2018 Budget Carry Forwards

 

GM Financial Strategy & Planning

Infrastructure funding and financing work with Treasury

Discuss ongoing work with central government on Crown Infrastructure Partners and Special Purpose Vehicles for major infrastructure projects – timing for committee as required

11/4/17 - Responsible investment policy and Diversified Financial Asset Portfolio review  Resolutions - FIN/2017/44, FIN/2017/45 and FIN/2017/46

20/06/17 - Review of the Diversified Financial Assets Portfolio  FIN/2017/88

19/9/17 – Approval of Group Policies  FIN/2017/121

11/12/17 – Approval of Treasury Management Policy   FIN/2017/161

27/2/17 – Council’s debt funding strategy  FIN/2018/10

 

GM Financial Strategy & Planning and Treasurer and GM Financial Transactions

Treasury and debt management

Briefing on council debt

 

 

Auckland Investment Office

Dividend reinvestment plan

Decision to agree required to approve Dividend Reinvestment Plan

 

 

GM Corporate Finance and Property

Weathertightness issues and provision

Review information

 

 

Executive Director, Auckland Investment Office

Colin Dale Park

Endorse the Heads of Agreement and

Approve to development costs.

 

 

Te Waka Anga Mua ki Uta

 

Māori Transformational Activity and Expenditure Report

Te Tiriti O Waitangi Audit Response Work Programme

Receive generally no decisions

23/5/17 - 23/5/17 – Third Quarter of 2016/17

FIN/2017/63

13/12/17 - Te Toa Takitini - Quarter One Māori Responsiveness portfolio report   FIN/2016/159

15/08/17 – 2016/2017 Year-End Report   FIN/2017/112

12/12/17 – Quarter One Report for 2017/2018 financial year   FIN/2017/202

20/03/18 – Quarter Two Report for 2017/2018 financial year   FIN/20178/14

12/12/17 Report  FIN/2017/291

12/3/18 Response Report   FIN/2018/45

24/7/18 Te Tiriti o Waitangi Report 2018   FIN/2018/115

17/10/18 Update on the independent assessment of expenditure incurred by Auckland Council to deliver Māori outcomes   

17/10/18 Auckland Council group – programmes and projects that have delivered Māori outcomes in 2017/2018  

17/10/18 2018 Treaty Audit Response Programme  

 

Reporting and Performance

 

GM Corporate Finance and Property

Annual Report

Receive Annual report

Recommend to Governing Body for adoption

Note:  

·       NZX announcements are presented to the Audit and Risk Committee

·       There is a delegation from the Committee to Chair and Deputy Chair of Finance and Performance to recommend to the Mayor and CE to release the preliminary results to the NZ Stock Exchange so that Council can meet NZX reporting deadlines.

·       Formal adoption of annual report is by the Governing Body

13/12/2016 - Delegation for approval of releasing interim and full year group results to New Zealand Stock Exchange   FIN/2016/168

18/9/18 – Approval of and recommendation for adoption of the 2017/2018 Annual Report for Auckland Council and Group (confidential)

 

GM Corporate Finance and Property

Half-yearly report

Receive Half-yearly report

Approve for release

Note:  

·    NZX announcements are presented to the Audit and Risk Committee

·    There is a delegation from the Committee to Chair and Deputy Chair of Finance and Performance to recommend to the Mayor and CE to release the preliminary results to the NZ Stock Exchange so that Council can meet NZX reporting deadlines.

 

 

CCO/External Partnerships

Statements of Intent

Agree 2019/2010 Letters of Expectation

 

15/8/17 – Approval of 2017/2020 Statements of Intent  FIN/2017/111

19/9/17 – Approval of Watercare Services Limited Statement of Intent 2017-20  FIN/2017/122

12/12/17 - Letters of Expectation for Council-controlled Organisations, 2017-2018  FIN/2016/170

20/3/18 – Letters of Expectation for 2018-2021

17/4/18 – proposed shareholder comments on Draft Council-controlled organisation statements of intent   FIN/2018/64

21/8/18 – Council-controlled Organisations – Approval of 2018-2021 Statements of Intent   FIN/2018/118

21/8/18 – Ports of Auckland Limited – proposed shareholder feedback on the draft Statement of Corporate Intent   FIN/2018/119

23/10/18 – Shareholder approval of Ports of Auckland Limited’s final statement of Corporate Intent 2018-2021  FIN/2018/156

23/10/18 – Workshop on Council Controlled Organisations letters of expectation, statements of intent and quarterly reporting.

 

Manager Corporate & Local Board Performance

Performance Reporting quarterly - parent

Receive generally no decisions

 

13/12/16 - Auckland Council organisation report for the period 1 July 2016 to 30 September 2016   FIN/2016/160

21/2/17 - Auckland Council organisation performance report for the period 1 July 2016 to 31 December 2016  FIN/2017/9

26/5/17 - Auckland Council organisation performance report for the period 1 July 2016 to 31 March 2017   FIN/2017/68

21/09/17 - Organisation Performance 1 July 2016 – 30 June 2017  FIN/2017/133

24/11/17 - 1 July 2017 – 30 September 2017   FIN/2017/177

12/03/18 - 1 July 2017 – 31 December 2017    FIN/2018/34

6/6/18 – Auckland Council parent performance report for the period 1 January 2018 to 31 March 2018    FIN/2018/98

17/10/18 – Auckland Council parent performance report for the period 1 July 2017 to 30 June 2018   

 

 

GM Financial Strategy & Planning

Performance Reporting quarterly – CCOs

Receive validate/challenge

 

13/12/16 - Council-controlled organisations first quarter report for 30 September 2016   FIN/2016/158

11/4/17 – CCOs second quarter report for 31 December 2017

26/5/17 –  Council-controlled organisations third quarter report for 31 March 2017   FIN/2017/69

21/09/17 - Fourth quarter report for 30 June 2017 (public excluded)  FIN/2017/130

24/11/17 - First quarter report for 30 September 2017   FIN/2017/178

12/03/18 – Second quarter report ending 31 December 2017  FIN/2018/18

31/5/18 – Approval of council-controlled organisations accountability policy   FIN/2018/91

6/6/18 – Council-controlled organisation third quarter report ending 31 March 2018   FIN/2018/96 and FIN/2018/97

17/10/18 – Council-controlled organisation fourth quarter report ending 30 June 2018  

23/10/18 – Workshop on Council Controlled Organisations letters of expectation, statements of intent and quarterly reporting.

 

GM Financial Strategy & Planning

Performance Reporting quarterly - group

Receive generally no decisions

 

13/12/16 - Auckland Council Group first quarter financial results to 30 September 2016   FIN/2016/161

21/3/17 - Auckland Council Group quarterly financial report and financial results to 31 December 2016  FIN/2017/28

26/5/17 - Auckland Council Group quarterly financial report and financial results to 31 March 2017   FIN/2017/70

21/09/17 – Report for adoption of the 2016/2017 Annual Report  FIN/2017/132

24/11/17 - Quarterly financial report and financial results to 30 September 2017   FIN/2017/176

12/03/2018 - Six monthly financial results to 31 December 2017   FIN/2018/32

6/6/18 – Auckland Council Group quarterly financial report and financial reports to 31 March 2018   FIN/2018/95

17/10/18 – Auckland Council and group financial performance for the year ended 30 June 2018  

 

Value for Money

GM Financial Strategy & Planning

Consideration and adoption of Group policy relating to Business Cases

Decision on whether to adopt a new policy

 

19/9/17 – Approval of Group Policies  FIN/2017/121

 

Operational

Panuku Development Auckland

Recommended disposals or acquisitions.  These reports are as required, but generally monthly.

Decision to proceed with recommended disposals or acquisitions.

 

Note:   A full list of properties to be disposed or acquired is included at the end of this document.

GM Corporate Finance and Property

Property portfolio

Regular reporting

29/3/18 – Workshop on corporate property strategy

17/4/18 – Corporate Accommodation Disposal Recommendation, Corporate Property Portfolio Strategy   FIN/2018/58

15/5/18 – Corporate Accommodation Disposal Recommendation, Corporate Property Portfolio Strategy   FIN/2018/73

Engineering & Technical Services / Treasury & Financial Transactions / Procurement

Consideration and adoption of Group policies for Performance Bonds

 

 

Decide whether to amend current policy

12/3/18 – Green Bond Framework Establishment and Potential Green Bond Issuance   FIN/2018/31

CCO/External Partnerships

Auckland Regional Amenities Levy MOTAT and Auckland War Memorial Museum Levy

Decision to approve submission on draft Funding Plan

Decision to approve levies

21/2/17 – Presentations from amenities - New Zealand Opera, Auckland Theatre Company, Coastguard Northern Region, Watersafe Auckland and Surf Life Saving Northern Region  FIN/2017/4

21/2/17 - Auckland Regional Amenities draft funding plan 2017-2018, proposed Auckland Council submission   FIN/2017/5

21/3/17 – Presentations from amenities – Stardome Observatory and Planetarium; New Zealand Maritime Museum; Auckland Philharmonia Orchestra; Auckland Rescue Helicopter Trust; and Auckland Arts Festival  FIN/2017/18

21/3/17 - Approval of Auckland Regional Amenities Funding Act levy 2017/2018  FIN/2071/19

27/2/18 - Presentations from amenities – Auckland Festival Trust; Surf Life Saving Northern Region; Auckland Theatre Company; and Stardome Observatory and Coastguard Northern Region   FIN/2018/5

27/2/18 - Auckland Regional Amenities Draft Funding Plan 2018/2019 - proposed Auckland Council submission  FIN/2018/6

20/3/18 - Integration of NZ Maritime Museum to Regional Facilities Auckland  FIN/2018/37

20/3/18 - Presentations from amenities – NZ Opera: Auckland Philharmonia Orchestra; Auckland Rescue Helicopter; and Drowning Prevention Auckland/Watersafe Auckland Inc  FIN/2018/38

17/4/18 – approval of Auckland Regional Amenities Funding Act levy   FIN/2018/63

21/3/17 – AWMM – approval of 2017/2018 levy   FIN/2017/20

21/3/17 – MOTAT – approval of 2017/2018 levy  FIN/2017/21

23/5/17 – AWMM letter – approval of 2017/2018 levy

17/4/17 – MOTAT – approval of 2018/2019 levy   FIN/2018/61

17/4/17 - AWMM – approval of 2018/2019   FIN/2018/62

 

Parks, Sports and Recreation

Loan restructuring (committee dates as required)

Decision to approve proposed restructuring

 

 


 

 

Previous annual/long-term plan processes

Meeting Date

Subject

13/12/16

Annual Budget 2017/18 – Mayoral Proposal on items for Public Consultation  FIN/2016/173

1/6/17

Annual Budget 2017/2018 - Overview to decision-making   FIN/2017/73

Annual Budget 2017/2018 - Local Board budget update  FIN/2017/74

Annual Budget 2017/2018 – Local Board Feedback   FIN/2017/75

Final Annual Budget 2017/2018 – Mayoral Proposal   resolutions - FIN/2017/76, FIN/2017/81, FIN/2017/83, and FIN/2017/85

Nov 2017 – May 2017

10-year Budget

31/5/18 – 10-year Budget – 2018-2018 Mayor’s final proposal   FIN/208/77-84

31/5/18 – Proposal for One Local Initiatives   FIN/2018/85

Rodney Local Board Targeted Rate: Rodney Local  Board Decision   FIN/2018/87

31/5/18 – Fees, charges and other rating matters   FIN/2018/89

31/5/18 – Adoption of the Rates Remission and Postponement Policy   FIN/2018/92

31/5/18 – Contributions Policy   FIN/2018/90

Adopted by the Governing Body: 31/5/18  GB/2018/91

Regional Fuel Tax   GB/2018/90

 

 

Panuku disposals/service property optimisation/land exchanges and acquisitions resolutions:

 

Meeting Date

Property Address

Resolution

 

13/12/16

Report Units 1-28/150 Mt Wellington Highway, Mt Wellington; and 1/16 Sarona Avenue, Glen Eden

FIN/2016/157

 

21/2/17

Report 523a Ellerslie-Panmure Highway, Mt Wellington; and 525-529 Ellerslie-Panmure Highway, Mt Wellington

FIN/2017/3

 

21/2/17

Report  Land up to 9ha to NZTA for the Northern Corridor Improvements Project

FIN/2017/7

 

21/2/17

Report  Statutory land exchange process – Rosedale Park

FIN/2017/8

 

21/3/17

Report  Part of 770R Great South Road, Manukau

FIN/2017/25

 

11/4/17

Report  19 Anzac Road, Browns Bay (deferred); 6 Butler Avenue, Papatoetoe; part of 129R Bairds Road, Otara; 315A Glengarry Road, Glen Eden; Section 1 East Coast Road, Redvale; 78a Great South Road, Papakura; Section 1 493 State Highway 16, Kumeu; Allotment 137 Ahuroa Parish, Woodcocks Road, Woodcocks; Allotment 138 Ahuroa Parish, Woodcocks Road, Woodcocks; Allotment 139 Ahuroa Parish, Woodcocks Road, Woodcocks; Allotment 140 Ahuroa Parish, Woodcocks Road, Woodcocks; Allotment 141 Ahuroa Parish, Woodcocks Road, Woodcocks; and Allotment 147 Ahuroa Parish, Woodcocks Road, Woodcocks

Resolutions -

FIN/2017/49, FIN/2017/50

 

23/5/17

Report  3 Memorial Drive, New Lynn

FIN/2017/57

 

26/7/17

Report  55a Alnwick Street, Warkworth; 45 Oraha Road, Huapai; 32 Harbourview Road, Te Atatu’  145a West Tamaki Road, Glen Innes;  343 Swanson Road, Ranui;  24 Waipuna Road, Mt Wellington;  26 Waipuna Road, Mt Wellington; 27b Waipuna Road, Mt Wellington; 1/77 Waipuna Road, Mt Wellington; 93 Waipuna Road, Mt Wellington; 134a Waipuna Road, Mt Wellington; and 3/136b Waipuna Road, Mt Wellington

FIN/2017/97

 

17/4/18

Report – Unlock Panmure - 59 Mountain Road, Mount Wellington; 59a Mountain Road, Mount Wellington; 3 Mountwell Crescent, Mount Wellington; 7 Mountwell Crescent, Mount Wellington; 3 Kings Road, Panmure; 15 Forge Way, Mount Wellington; 7 and 9 Jellicoe Road, Mount Wellington; 30-34 Potaka Lane, Panmure; 486-492 Ellerslie-Panmure Highway, Mt Wellington; 516 Ellerslie-Panmure Highway, Mount Wellington; Former 528 Ellerslie-Panmure Highway, Mount Wellington; 530 Ellerslie-Panmure Highway, Mount Wellington; 532-534 Ellerslie-Panmure Highway, Mount Wellington; 535 Ellerslie-Panmure Highway, Mount Wellington; 536 Ellerslie-Panmure Highway, Mount Wellington; 7-11 Queens Road, Panmure; 39-41 Queens Road, Panmure; 11-13 Lagoon Drive, Panmure; 16 Lagoon Drive, Panmure; 20 Lagoon Drive, Panmure; 22 Lagoon Drive, Panmure; 26 Lagoon Drive, Panmure; 28 Lagoon Drive, Panmure; 30 Lagoon Drive, Panmure; 32-34 Lagoon Drive, Panmure; 1-19/10 Basin View Lane, Panmure; 23 Domain Road, Panmure; and 28-30 Pilkington Road, Mount Wellington.

FIN/2018/59

 

15/8/17

Report  187 Flat Bush School Road, Flat Bush;

FIN/2017/108

 

Report  Unlock Old Papatoetoe - 17 St George Street, Papatoetoe; part 27 St George Street, Papatoetoe; 104 St George Street, Papatoetoe; and 109 St George Street, Papatoetoe

FIN/2017/109

 

Report  31-35 Mill Road, Helensville

FIN/2017/110

 

24/10/17

Report  19 Anzac Avenue, Browns Bay; 10 Felton Matthew Avenue, St Johns; and part Bombay Road, Bombay

Resolutions
FIN/2017/144, FIN/2017/145

 

21/11/17

Report Unlock Avondale   Unlock Avondale – 93-99 Rosebank Road, Avondale

FIN/2017/168

 

12/12/17

Report  80 Vincent Street, Howick (motion lost); 41 Cheshire Street, Parnell; 108 Hepburn Street, Freemans Bay; 9 Matama Street, Glen Eden; and 58/7 Rowlands Road, Mt Wellington

FIN/2017/204

 

Report  Land exchange at Hillary Crescent, Belmont and Northboro Reserve – Recommendation from the Environment and Community Committee

FIN/2017/207

 

27/2/18

Report  61-117 Clark Road, Hobsonville; and

Report  37 New Windsor Road, Avondale (SPO)

FIN/2018/8

FIN/2018/11

 

20/3/18

Report  3.8ha of reserve land in Upper Harbour Local Board for New Zealand Transport Agency Northern Corridor Improvements

FIN/2018/18

 

17/4/18

Report – 156 Blockhouse Bay, Avondale; 2a Stokes Road, Mt Eden; 570 Great South Road, Papatoetoe; 139 Kolmar Road, Papatoetoe; and 66R Hallberry Road, Mangere East

FIN/2018/60

 

 

24/7/18

Report – 132 Green Lane East, Greenlane; 28 Lockwood Road, Papakura; Adjacent to 1/18 Edwin Freeman Place Ranui; and Adjacent 18 Parrs Cross Road, Henderson.

FIN/2018/113

 

18/9/18

Report – 30R Birmingham Road, Otara; and 8 Hiwi Crescent, Stanmore Bay

FIN/2018/136

 

 

Budget Update:

Date

Property address(es)

Resolution

13/12/16

Report  Additional OPEX budget of up to $104,000 to conduct a by-election for a Howick Local Board Member; and release of $2.7m from existing budget for Putney Way streetscape upgrade, ahead of the Transform Manukau business case

FIN/2016/164

21/3/17

Report  Additional CAPEX budget of $960,000 to complete Freyberg Place upgrade; new OPEX budget of $80,000 for Karangahape Road destination marketing; contribution of $300 to the city feature lighting project (led by Heart of the City) – both funded from the City Centre Targeted Rate reserve.

FIN/2017/29

20/6/17

Report  Conversion of $3.1m CAPEX budget for multi-purpose community facility in Takanini

FIN/2017/90

26/7/17

Report  Purchase of additional trains (rescinded 24/10/17 FIN/2017/189)

FIN/2017/98

19/9/2017

Report  Release and allocate Takapuna off-street car park reserve fund $4,269611 to the Gasometer public car park project; release $6.1m form existing Transform Manukau $2.6 CAPEX and $2m OPEX and Transform Onehunga $1.5 OPEX.

FIN/2017/123

24/10/17

Report  Approve procurement of 15 3-car electric multiple units of $133m; release of Franklin Parking Reserve Fund ($128,214) for upgrade of carpark at Kitchener Road, Waiuku; OPEX of $828,000 for two by-elections; OPEX budget of $115,400 for by-election for Waitemata Local Board.

FIN/2017/141

12/12/17

Report  Update on the purchase of additional trains for Metro Rail

FIN/2017/205

27/2/18

Report  Up to $3.2m CAPEX for fit-out for ATEED office and up to $0.8m OPEX for make good of current head office; $3.85m CAPEX for Rawene remedial works; updated city centre targeted rate-funded work programme; and property acquisitions at 155-167 Fanshawe Street and 100 Halsey Street, Auckland

Resolutions - FIN/2018/17, FIN/2018/18

17/4/18

Report  Up to $740,000 of additional expenditure ($655,000 OPEX and $85,000 CAPEX) to manage kauri dieback; two additional FTE employees and out-sourced contractors to manage the closures and noting additional expenditure to be prioritised for kauri dieback work such as track improvements, upgrades, landowner support, hygiene station upgrades and washdown facilities.

FIN/2018/65

 

 

 

 

 

 

     

 


Finance and Performance Committee

20 November 2018

 

 

Exclusion of the Public: Local Government Official Information and Meetings Act 1987

That the Finance and Performance Committee

a)      exclude the public from the following part(s) of the proceedings of this meeting.

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 follows.

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 relevant part of the proceedings of the meeting in public, as follows:

 

C1       Delegations for weathertightness claim

Reason for passing this resolution in relation to each matter

Particular interest(s) protected (where applicable)

Ground(s) under section 48(1) for the passing of this resolution

The public conduct of the part of the meeting would be likely to result in the disclosure of information for which good reason for withholding exists under section 7.

s7(2)(g) - The withholding of the information is necessary to maintain legal professional privilege.

s7(2)(i) - The withholding of the information is necessary to enable the local authority to carry on, without prejudice or disadvantage, negotiations (including commercial and industrial negotiations).

In particular, the report contains legal advice and informaiton confidential to legal proceedings.

s48(1)(a)

The public conduct of the part of the meeting would be likely to result in the disclosure of information for which good reason for withholding exists under section 7.

 

   

 

 



[1] Howick Village Centre Plan, 23.

[2] Howick Village Centre Plan, 23.

[3] Howick Village Centre Plan, 24.

[4] Howick Village Centre Plan, 36.