I hereby give notice that an ordinary meeting of the Puketāpapa Local Board will be held on:




Meeting Room:



Thursday, 24 April 2014


Waikowhai Meeting Room
Fickling Convention Centre
546 Mt Albert Road
Three Kings


Puketāpapa Local Board









Julie Fairey


Deputy Chairperson

Harry Doig



David Holm



Ella Kumar



Nigel Turnbull



Michael Wood



(Quorum 3 members)




Brenda  Railey

Democracy Advisor


23 April 2014


Contact Telephone: 021 820 781

Email: brenda.railey@aucklandcouncil.govt.nz

Website: www.aucklandcouncil.govt.nz




Puketāpapa Local Board

24 April 2014



ITEM   TABLE OF CONTENTS                                                                                        PAGE


25        Auckland Council Property Limited Local Board Six-Monthly Update
1 July to 31 December 2013                                                                                         

26        SLIPs Budget Update                                                                                                  35 



Puketāpapa Local Board

24 April 2014



Auckland Council Property Limited Local Board Six-Monthly Update
1 July to 31 December 2013


File No.: CP2014/08221





1.       The purpose of this report is to update the Puketapapa Local Board of the activities of Auckland Council Property Limited (ACPL) for the six months 1 July to 31 December 2013.

Executive Summary

2.       ACPL’s goal is to be recognised as a “centre of excellence” that brings commercial expertise and provides value for money to Auckland Council across a discrete property portfolio valued at approximately $1 billion.  ACPL provides commercial expertise in property management, the buying, selling of properties and by and strategically developing council assets.   As a substantive CCO with a commercial focus ACPL provides crucial support to a council organisation that efficiently and effectively achieves social, economic, cultural and environmental outcomes for Auckland.

3.       In order to achieve our goal and meet the expectations of the Mayor and the council, ACPL will work towards seven key outcomes over the next three years. These are:

·    Properties managed for the council and Auckland Transport (AT) are fit for purpose and net returns optimised.

·    Place-shaping partnerships are effectively planned and managed to project completion and in accordance with Auckland Plan objectives.

·    ACPL identifies housing opportunities and collaborates with partners to deliver exemplar housing developments, particularly in the more affordable spectrum of the market.

·    Council business interests are managed to protect long term value and achieve budgeted net return. 

·    Property acquisitions are undertaken in a commercially robust manner and in accordance with the council and AT agreed requirements and relevant legislation.

·    Council and AT property disposals are undertaken in a commercially robust manner.

·    The council is provided with a commercial perspective on planning and development initiatives to support effective implementation of those initiatives.

4.       A summary of ACPL activities specific to the Puketapapa Local Board is outlined in the Discussion section of this report with supporting detail included in Attachments B, C, and D.



That the Puketāpapa Local Board:

a)      accepts the Auckland Council Property Limited Local Board Six-Monthly Update Report 1 July to 31 December 2013.





Principles for working together

5.       ACPL’s Local Board Engagement Plan (LBEP) states that a successful working relationship between local boards and ACPL is founded on the following high-level principles which will guide our engagement with the local boards:

·    a shared understanding of and mutual respect for the roles, responsibilities and decision-making authority of local boards, the governing body and ACPL; 

·    transparent and timely communication with no surprises;

·    understanding and acknowledgment of shared responsibilities between the parties;

·    a commitment to a timely response to and resolution of issues raised by local board members;

·    a commitment to early inclusion in the planning and decision making process where issues have a specific relevance to a Local Board;

·    a commitment to flexibility in terms of engagement, recognising differing levels of interest and local relevance across the Auckland region.


6.       ACPL’s commitment to the local boards is outlined in detail in our LBEP, which is attached as Attachment A for reference

Workshops and Meetings

7.       A schedule of Puketapapa Local Board workshops and meetings attended by ACPL representatives from July to December 2013 is attached as Attachment B. The list includes property specific meetings and workshops relating to general property management and the ongoing portfolio Rationalisation Process.

Property Portfolio Management

8.       ACPL manages all non-service properties. These are properties not immediately required for service delivery or infrastructure development that are owned by Auckland Council or Auckland Transport. The current property portfolio includes industrial sites and buildings, retail tenancies, cafés, restaurants, offices and a substantial portfolio of residential properties. ACPL’s improved property knowledge and understanding has enabled it to optimise revenue streams and identify future opportunities. 

9.       The property portfolio has continued to grow during the last six-months and now totals 1095 properties. Rent arrears and vacancies were effectively managed throughout the period. During Q1 the average monthly collectable arrears rate and vacancies rate were respectively 1.35% and 2.93%. ACPL’s return on the property portfolio for the quarter ending 30 September 2013 provides the shareholder a net surplus above YTD budget of $2m.

10.     Property portfolio information detailing current ACPL managed commercial and residential property within the Puketapapa Local Board area is attached at Attachment C of this report. The report includes each property’s classification or reason for retention along with additional notes to identify the nature of the property, such as a café within a library, or a residential property with tenancy in place. It has also been updated to show properties for which council directs that the operating budget and lease revenue will be included in local board budgets from July 2014.

11.     A report indicating portfolio movement in the local board area is attached as Attachment D. The report details all new acquisitions including the reason for acquisition, any transfers and the reason for transfer, and any disposals.


Portfolio Review and Disposals

12.     ACPL is required to undertake ongoing rationalisation of the council’s non-service assets. This includes identifying properties from within council’s portfolio that may be suitable for potential sale and development if appropriate. ACPL has a particular focus on achieving housing outcomes. Identifying potential sale properties contributes to Auckland Plan outcomes by providing the council with an efficient use of capital and prioritisation of funds to achieve its activities and projects. ACPL and Auckland Council’s Property Department work collaboratively on a comprehensive review process to identify such properties.

13.     Once identified as a potential sale candidate a property is taken through a multi-stage Rationalisation Process. The agreed process includes engagement with; council, CCOs, local board and mana whenua. This is followed by ACPL Board approval, engagement with local ward and the Independent Maori Statutory Board and finally a governing body decision. A detailed process flowchart is provided as Attachment E.

14.     Council is budgeting to receive proceeds from the sale of surplus properties of $80 million in 2012/2013 and $58 million in 2013/2014. The financial implication of not achieving these budgets would be higher debt and therefore higher interest costs compared to budget. 

15.    Properties under review for future use opportunities via the Rationalisation Process in the Puketapapa area will be listed here as and when they arise. This will include detail around the review of properties no longer required for their original service purpose. There are currently no properties under review for future use opportunities in the Puketapapa Local Board area. Further details are included in Attachment C.

Place Shaping and Housing Initiatives

16.     ACPL is contributing commercial input into around 40 council-driven place-shaping and housing initiatives region wide. Involvement extends from provision of initial feasibility advice through to implementation, with projects ranging in size from $400k to in excess of $100million.

17.     There are no current ACPL place-shaping or housing initiatives or proposals underway in the Puketapapa Local Board area.


18.     ACPL continues to support Council and Auckland Transport programmes and projects by negotiating required property acquisitions. All such acquisitions are funded through approved Council or Auckland Transport budgets. We also provide advice to assist with budgets, business cases and strategy to support an acquisition.

19.     A total of 54 property purchases to the value of $8.9m were completed during Q1. The number of acquisitions under active negotiations at the end of Q1 was 300 (253 AT and 47 AC).

20.    Recent council acquisitions have included;

-     meeting open space requirements, particularly for subdivisions

-     City Transformation projects

-     Heritage projects

-     Storm water projects.

21.    Current acquisitions programmes for AT include;

-     AMETI (Auckland Manukau Eastern Tamaki Initiative)

-     CRL (City Rail Link)

-     Te Atatu Road, Te Atatu road widening

-     Dominion Road, Mt Eden road widening.

22.    All properties were purchased within the valuation threshold agreed with Auckland Council and Auckland Transport.

23.    Due to commercial sensitivities any Puketapapa Local Board specific acquisitions detail will be provided direct to the local board by the Auckland Council or AT project owner..

Business Interests

24.     ACPL manages eight business interests region wide on council’s behalf. This comprises two forestry enterprises, two landfills and four quarries. There are currently no ACPL managed business interests in the Puketapapa Local Board area.


Local Board Views

25.     This report is for the Puketapapa Local Board’s information and seeks the views of the Local Board.

Maori Impact Statement

26.     During the past six months ACPL has further developed our Maori engagement initiatives. Our enhanced process engages with the 19 key mana whenua groups in the Tamaki region on three fronts: identifying cultural significance concerns regarding disposal properties, flagging commercial interests and development partnering discussions. ACPL also engages with relevant mana whenua in respect of development outcomes for ACPL lead projects. ACPL has additionally undertaken to be part of council’s Maori Responsiveness Plan pilot programme. The project’s key output will be an operational document outlining how ACPL will contribute to council’s strategic and operational commitments to Maori. The Current State Assessment phase of this project has been completed and we are now in the Improvement Planning phase. ACPL will advise the Puketapapa Local Board as appropriate of any specific discussions that arise in the local board’s area.


27.     This report is intended to help ACPL meet its statutory obligations under the Local Government Act 2002. The relevant sections of the Local Government Act 2002 are noted below for information.

28.     As provided in section 59(1) of the Local Government Act 2002, the principal objective of a CCO is to:

(a)    achieve the objectives of its shareholders, both commercial and non-commercial, as specified in the statement of intent; and

(b)    be a good employer; and

(c)    exhibit a sense of social and environmental responsibility by having regard to the interests of the community in which it operates and by endeavoring to accommodate or encourage these when able to do so; and

(d     the CCO is a council-controlled trading organisation, conduct its affairs in accordance with sound business practice.


29.     As provided in clause 1 of Schedule 8 of the Local Government Act 2002, the purpose of the SOI is to:

·    state publicly the activities and intentions of a CCO for the year and the objectives to which  those activities will contribute;

·    provide an opportunity for shareholders to influence the direction of the organisation; and

·    provide a basis for the accountability of the directors to their shareholders for the performance of the organisation.

Implementation Issues

30.     There are no implementation issues.








ACPL DRAFT Local Board Engagement Plan



Schedule of meetings and workshops



Properties Managed by ACPL in the Local Board area



Property movement in the Local Board area



Rationalisation Process Flowchart




Caitlin Borgfeldt - Local Board Liaison


David Rankin - Chief Executive


Puketāpapa Local Board

24 April 2014



Puketāpapa Local Board

24 April 2014





Puketāpapa Local Board

24 April 2014



Puketāpapa Local Board

24 April 2014



Puketāpapa Local Board

24 April 2014



Puketāpapa Local Board

24 April 2014



Puketāpapa Local Board

24 April 2014



SLIPs Budget Update


File No.: CP2014/08312






1.       To confirm total budget available to allocate from the Puketāpapa Local Board Small Local Improvements Projects (SLIPs) Budgets.

Executive summary

2.       The SLIPs Capital Expenditure Budget (Capex) for 2013/2014 has been fully allocated.

3.       The SLIPs Operational Expenditure Budget (Opex) for 2013/2014 has not been fully allocated.  The total unallocated amount is $26,733.00.

4.       In addition to the unallocated amount available in the Opex budget line, we have identified savings from two projects, namely the Waikowhai Coast (approximately $4,000.00 unspent) Festival and Business Breakfasts (approximately $3,000.00 unspent).

5.       As of the 23rd April 2014, the Opex budget available for allocation is $33,733.00.  This total comprises of the unallocated amounts and recognises savings from underspent budgets.



That the Puketāpapa Local Board:

a)         allocates the unallocated and unspent funds in its SLIPS Opex budget to the following projects:

            [Projects to be tabled at the meeting]



There are no attachments for this report.    



Shirley  Atatagi-Coutts - Senior Local Board Advisor


Victoria Villaraza - Relationship Manager