Agenda of Whau Local Board

Whau Local Board

16 April 2014

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

File No.: CP2014/05880

Purpose

1. The purpose of this report is to update the Whau 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 Whau Local Board is outlined in the Discussion section of this report with supporting detail included in Attachments B, C, and D.

Recommendation

That the Whau Local Board:

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

Discussion

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 Whau 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 Whau 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 currently under review for future use opportunities via the Rationalisation Process in the Whau Local Board area are listed below. The list includes any properties that may have recently been approved for sale or development and sale by the governing body. Further details are included in Attachment C.

PROPERTY	DETAILS
72B Delta Avenue, New Lynn	Former accessway between 72 and 74C Delta Ave. Purchased for roading but no longer required for that purpose. Pending confirmation of any Stormwater tags. 74 – 80 are closed landfill.
1815, 1817 & 1823 Great North Road, Avondale	The combined site of 3,076sqm has been identified for housing. The property is being progressed through the Rationalisation Process to clear it for sale for development. See paragraph 20 for more detail.
1B Rankin Avenue, New Lynn	Not required by Auckland Transport (AT) for infrastructure purposes. ACPL is now processing through Rationalisation Process to evaluate future use requirements and considerations.

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. A high level update on place-shaping and housing initiative activities in the Whau area is outlined in points below.

18. New Lynn Infratil Joint Development: The car park has been transferred to AT. Construction works are underway on the residential tower. An onsite agent is handling leasing for the remaining available retail units. Stage Two of the development is currently being reviewed by ACPL to ensure its commercial feasibility.

19. Avondale: An area targeted for regeneration with council owning significant sites that could be leveraged to assist development in line with Auckland Plan objectives.

20. Racecourse Parade: ACPL is evaluating potential outcomes for a mixed use town centre development. These properties are not yet reflected in the ACPL managed properties list at Attachment C or the properties under review at paragraph 14 as they are still going through the transfer process into ACPL’s portfolio.

21. Highbury Triangle: Includes council owned properties at Rosebank Road, the location of the existing library and community centre and 1815, 1817 & 1823 Great North Road. The redevelopment of the Rosebank Road site will depend on the possible relocation of the library and community centre. The Great North Road site has been identified for potential residential housing and is being progressed through the Rationalisation Process to clear it for sale and development through an RFP process. The local board and council will be informed of the response to the RFP to ensure their aspirations for the site are met.

22. Godley Road, Green Bay: 81a and 83b Godley Road, Green Bay were cleared for sale by committee on 6 June 2013 with the resolution as copied below.

b) that subject to the satisfactory conclusion of any required statutory processes, the Strategy and Finance Committee:

i) approve the disposal of Lot 14 DP 39391 CT-24D/137, 81a Godley Road, Green Bay and Lot 1 DP 53146 CT-3C/712, 83b Godley Road, Green Bay at current market value, following completion of the scoping exercise which is in progress, around potential development of the sites for higher density affordable housing outcomes. Final terms and conditions, including provision of an esplanade reserve, to be approved under the appropriate delegations.

ii) if approved, ACPL will undertake the sales process for this prominent site in a manner that maximizes the opportunities to achieve quality urban design outcomes for the site. ACPL will also consult with the Local Board as part of the master-planning exercise for the site.

23. Scoping work is underway to establish the feasibility of achieving both housing outcomes and upgraded elderly housing facilities.

24. 1 Trent Street, Avondale: This is a residential site capable of holding around 20 housing units. The site was designated as a Special Housing Area (SHA) in October 2013. The outcome sought is a good quality mixed tenure housing development on the site. A Sale and Purchase agreement has been agreed with NZ Housing Foundation for development of approximately 29 affordable homes.

Acquisitions

25. 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.

26. 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).

27. Recent council acquisitions have included;

- meeting open space requirements, particularly for subdivisions

- City Transformation projects

- Heritage projects

- Storm water projects.

28. 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.

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

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

Business Interests

31. 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 Whau Local Board area.

Consideration

Local Board Views

32. This report is for the Whau Local Board’s information and seeks the views of the Local Board.

Maori Impact Statement

33. 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 Whau Local Board as appropriate of any specific discussions that arise in the local board’s area.

General

34. 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.

35. 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.

36. 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

36. There are no implementation issues.

Attachments

No.	Title	Page
a View	ACPL Draft Local Board Engagement Plan	15
b View	Schedule of Meetings and Workshops	31
c View	Properties Managed by ACPL in the Local Board area	33
d View	Property movement in the Local Board area	35
e View	Rationalisation Process Flowchart	37

Signatories

Author

Caitlin Borgfeldt - Local Board Liaison

Authorisers

David Rankin - Chief Executive

Glenn Boyd - Relationship Manager Henderson-Massey, Waitakere Ranges, Whau

Whau Local Board

16 April 2014

Auckland Transport Update Report – Whau Local Board

File No.: CP2014/06694

Executive Summary

1. The purpose of the report is to respond to Local Board requests on transport related matters and to provide information to Elected Members about Auckland Transport’s activities in the Board area.

Recommendation

That the Henderson-Massey local board:

a) Receives the Auckland Transport Report for the Whau Local Board.

Discussion

INFORMATION REPORTS

THANKS AUCKLAND - YOU’RE ONE IN 11 MILLION

2. Aucklanders are getting on board with trains in record numbers – making a record 11 million trips in the past year.

3. This milestone comes just weeks before Auckland’s new electric trains are introduced and is the highest number of passengers ever on the current rail network.

4. Auckland Transport Chairman Dr Lester Levy says Aucklanders are using public transport more than ever as improvements to services make it a more attractive option. “We are now seeing 5,000 additional passenger journeys each business day compared to a year ago. People are responding to initial improvements such as integrated ticketing, better on-time performance and improved facilities like the new transport hub at Panmure and there’s a lot more to come.”

5. When Britomart Transport Centre opened in 2003, just 2.5 million trips were made on trains.

6. Auckland Mayor Len Brown says the milestone is very welcome.

7. "One thing is certain with regard to public transport in Auckland. If you build it people will use it. I am confident that now integrated ticketing is in place and as our new electric trains go into service, this won't be the last patronage record we will break.

8. The implementation of the New Network and the City Rail Link will also boost numbers."

9. Transdev operates the trains for Auckland Transport. It says it is pleased to see that its major focus on performance over the past 12 months is translating to improved patronage.

10. Transdev Managing Director Terry Scott says “We are working hard with our partners at Auckland Transport and KiwiRail to improve network performance and we are striving every day to achieve excellence in the customer experience.”

11. Dr Levy says the upward trend in numbers is pleasing given that during the past year rail services have been regularly disrupted due to electrification works on the network. “We are making strides with an ageing fleet of diesel trains which are now 60 years old, just imagine what we will do with new trains.”

TIVERTON WOLVERTON UPGRADE PROJECT

12. Auckland Transport’s $23 million upgrade of Tiverton Road and Wolverton Street will largely be completed this month, on budget and ahead of schedule.

13. The route’s five new signalised intersections are now operational, leaving only minor construction and landscaping works to be completed over the next few months.

14. Whau Local Board Chairperson Catherine Farmer says the upgrade has brought some dramatic improvements to the local roading network – with the Tiverton-Wolverton corridor being a key route to Auckland Airport for many west Aucklanders and an important access route to SH16 via the future Waterview connection.

15. “It’s been a big success for Auckland Transport to have these major roading works completed in just over a year and a half. As a result, a much improved route has been delivered between the major metropolitan centre of New Lynn and State Highway 20,” she says.

16. “We have already received positive feedback from the community that the intersections are working well, with the Blockhouse Bay Road intersection in particular operating more efficiently and providing a safer environment for pedestrians to cross.”

17. The Tiverton-Wolverton Road Upgrade has delivered a number of long-term benefits for those living and working in the area and those regularly travelling along the busy route, which carries an average of 31,400 vehicles per day.

18. The upgrade has reduced congestion by creating four lanes to remove the former two-lane bottleneck between New Lynn and New Windsor.

19. The works also included:

· reconstruction of the road

· installing traffic signals at five major intersections to improve traffic flow and provide safe crossing points for pedestrians

· upgrading the existing footpaths and installing new pedestrian islands for improved safety

· undergrounding and renewing power and communication services

· upgrading the water supply network, stormwater catchpits and pipe infrastructure

· upgrading street lighting

· installing 10 new bus shelters

20. AT advises that the landscape along Tiverton Road and Wolverton Street has now changed dramatically and motorists in particular should take extra care while adjusting to those changes.

21. Construction of a cycle route that allows cyclists to avoid the busy Tiverton-Wolverton corridor is expected to start in a few months. It will be implemented along Miranda Street, Margate Road, Mulgan Street and New Windsor Road, linking to the existing SH20 cycle route at Maioro Street.

RESPONSES AND PROGRESS REPORTS

BLOCKHOUSE BAY ROAD – PEDESTRIAN ACCESS

22. A request for Auckland Transport to relook at the pedestrian push button due to a depression and the poor condition of the footpath.

RESPONSE

23. Auckland Transport has undertaken a second investigation due to the depression and poor condition of the footpath. Auckland Transport is currently working with their Maintenance Team to improve the condition of the footpath and reduce the steepness of the depression to provide easier access to the pedestrian push button. Auckland Transport expects the construction work for improvements to be completed within the next six to eight weeks.

WINGATE STREET SEAL SWEEPING REQUEST/VEHICLE CROSSING WORK

24. A request for Auckland Transport to provide the programme timeline for sweeping on Wingate Road and to look at doing work on some vehicle crossings in Wingate Street.

RESPONSE

25. In regards to sweeping of Wingate Street. Wingate Street was resealed late last year and unfortunately there were parked vehicles in the street making it difficult to sweep the street after the reseal. The sweep was done on 5 November 2013 as per the Auckland Transport (AT) programme for sweeping. Auckland Transport’s contractors will sweep the Avondale/Blockhouse Bay area again this month.

26. With regard to the request for work on the vehicle crossing (driveways), this is the responsibility of the property owner. The vehicle crossing is the area of driveway between the council road and the private property boundary. AT will only repair the part of the crossing that crosses the footpath if it is deemed by Auckland Transport to be unsafe.

CLEARWAY REQUEST OUTSIDE THE AVONDALE POLICE STATION

27. A request for Auckland Transport to investigate install Clear Ways on both entrances to the Police Station

RESPONSE

28. Auckland Transport’s Traffic Engineers visited the area concerned and assessed the feasibility of implementing a 'KEEP CLEAR' restriction. Several factors are carefully considered when assessing a parking restriction. This includes traffic volumes, type of road (e.g. Arterial, Collector, and Local), traffic efficiency and the parking demand in the area.

29. It is important that Auckland Transport undertake this type of assessment to ensure ‘Clearway’ parking restrictions are only considered where there would be a significant benefit to the wider community and an improvement in the traffic flow.

30. As a result of their investigation Auckland Transport have found that due to vehicle queues; assess for emergency vehicles can be restricted when coming out of Walsall Street from the exit driveway of Avondale Police Station. Auckland Transport will install 'KEEP CLEAR' markings on Great North Road at the intersection with Walsall Street, to allow access for emergency vehicles.

REQUEST FOR YELLOW LINES ON THE CORNER OF BARRON DRIVE, GREEN BAY

31. A request from the Local Board for Yellow Lines to be installed on Barron Drive, Green Bay.

RESPONSE

32. Auckland Transport’s Traffic Engineers visited the area concerned and assessed the feasibility of yellow lines on the corner of Barron Drive.

33. It is important that Auckland Transport undertake this type of assessment to ensure ‘yellow lines’ parking restrictions are only considered where there would be a significant benefit to the community and an improvement in the traffic flow.

34. The road is 8m wide and there is already NSAAT on the inside of the bend. Parked vehicles on the outside of the bend still leaves room for two-way traffic flow around the bend. Furthermore, the parking on the outside of the bend is subject to a P180 restriction, which restricts all day parking and therefore lowers the parking demand.

35. On-street parking provides a valuable amenity to local residents and businesses - removing the parking in this location cannot be justified at this time.

REQUEST FOR A PEDESTRIAN CROSSING AT THE TOP OF HEAPHY STREET NEAR THE ROUNDABOUT

36. A request through the Local Board for a pedestrian crossing at the top of Heaphy Street near the roundabout.

RESPONSE

37. An Auckland Transport Engineer has visited the site and undertaken an initial review of the issues that have been raised. Further detailed investigation now needs to be undertaken to ensure a comprehensive review of this issue. This investigation has been prioritised and programmed for review, with an expected completion date of mid May 2014. Following this Auckland Transport will be able to provide an assessment and their recommendations.

RIMU STREET SPEED CALMING

38. A request for Auckland Transport to look at speed calming measures on Rimu Street to assist pedestrians.

RESPONSE

39. More time is required to complete an investigation as currently there are rehab works being undertaken on Rimu Street. The works would not allow Auckland Transport to obtain accurate results on a tube count. It is estimated that the rehab construction works should be completed by end of April 2014, after which time the tube counts can be completed. AT apologise for the delay and you can expect to receive an update by mid June 2014.

REQUESTING PEDESTRIAN CROSSING AT THE TOP OF HEAPHY STREET

40. A request for Auckland Transport to investigate installing of a pedestrian crossing on Heaphy Street.

UPDATE

41. Auckland Transport undertook an initial review of the issues raised. Further detailed investigation now needs to be undertaken to ensure a comprehensive review of this issue. This investigation has been prioritised and programmed for review, with an expected completion date of mid May 2014 following which Auckland Transport will be able to provide you with the outcome and recommendations of their assessment.

ISSUES PENDING
Subject Name	Description	Date Requested	Due Date
Methuen Road – Driver / Pedestrian Safety Concerns	A request for parking restrictions to be installed to stop trucks parking in residential streets.	7 January 2014	May 2014
Roading Corridor Weed Control In The Whau Ward	The Local Board has requested information on weed control in the road corridor. Auckland Transport will arrange a workshop with the Local Board to discuss weed control in the Whau Ward.	19 February 2014	May 2014
Blockhouse Bay Town Centre Parking Management	Auckland Transport will be undertaking a workshop with the Local Board on this project.	31 December 2013	May 2014
Antisocial use of Cars in Lansford Crescent	Auckland Transport has been requested to look at options to mitigate the antisocial use of cars in Lansford Crescent, Avondale.	25 November 2013	May 2014
Pavers - Footpath next to the garden, corner of Crayford Street West and Great North Road	A request for Auckland Transport to do maintenance in Avondale Township in regards to pavers.	2 March 2014	May 2014

ISSUES COMPLETED
Subject Name	Decision Description	Date Requested	Completion date
Saltaire Street And Great North Road – Driver Safety	Auckland Transport have spent time looking at ways that AT could improve the situation, however, any possible solution would adversely affect traffic flows along the arterial road, in this case Great North Road. Any impact on traffic flows along Great North Road would create additional congestion and almost certainly delays as a result. Auckland Transport cannot justify any changes at this time.	January 2014	March 2014
Bolton Street, Blockhouse Bay Speed Humps Requests	There is an increase in the volume of traffic, this is likely to be due to the Tiverton Road and Wolverton Street upgrade. It is expected that traffic volumes on Bolton Street will reduce once this upgrade is completed. Auckland Transport cannot justify any changes at this time.	22 November 2013	12 December 2013
Exminster Street – Broken Yellow Lines Request	No significant safety issues have been identified. Auckland Transport is unable to justify the installation of additional broken yellow lines at this location	29 November 2103	6 January 2014
Car Windows Smashed Parking At Avondale Train Station	Ongoing surveillance by Avondale Police and Auckland Transport to mitigate the issues	19 September 2013	February 2014
Shared path on Maioro Street “Keep Left Signs”	The general rule is using no signage or, minimal use of signs on shared paths. Generally, separating cyclists from pedestrians or other path users by a painted line is not preferred. A centre line may be useful in areas of poor visibility (e.g. around a corner). Arrow markings or “Keep left” markings may be useful as a reminder in areas where conflicts have been identified or may be expected. Signs advising of courtesy codes (encouraging sharing of facilities) may be considered if needed. The start and finish of a shared path should be indicated through the appropriate signs.	17 February 2014	18 February 2014
Geneva Place – Broken Yellow Lines Request	On-site inspections showed that the road width of Geneva Place is approximately 5.2 metres wide, with existing broken yellow lines along the eastbound lane. This ensures that single lane movement is maintained even if there is a vehicle parked on the other side. On-site inspections showed that safe manoeuvres around the cul-de-sac could still be made. This is not a safety issue, therefore installing broken yellow lines is not justified. AT acknowledges that there may be instances where a truck is parked at the neck which causes inconvenience manoeuvring around the cul-de-sac; therefore a coustesy letter will be sent to the truck owner requesting parking away from the cul-de-sac head.	10 November 2013	4 February 2014
Approval for traffic movement change in Institute Lane, New Lynn	Auckland Transport has made some changes to the Institute Lane as requested by the Local Board and Business Association	20 November 2013	5 February 2014

Attachments

There are no attachments for this report.

Signatories

Author

Owena Schuster - Elected Member Relationship Manager - West, Auckland Transport

Authorisers

Jonathan Anyon - Elected Member Relationship Team Manager, Auckland Transport

Glenn Boyd - Relationship Manager Henderson-Massey, Waitakere Ranges, Whau

Whau Local Board

16 April 2014

Local Board Transport Capital Fund – Overview of Total Programme for the Current Local Boards

File No.: CP2014/06350

Purpose

1. The purpose of this report is advise all twenty-one Local Boards of the current status of the Local Board Transport Capital Fund Programme, in particular the need to identify new project proposals that will enable the total budget that needs to be spent in the electoral term of the current Local Boards to be spent by the end of June 2016.

Recommendation

That the Whau Local Board:

a) Identifies new project proposals for the Local Board Transport Capital Fund programme by 31 August 2014 so that subsequent initial assessment, detailed design including consultation and statutory approvals, and construction can be completed by 30 June 2016.

Background

2. The total annual budget for the Local Board Transport Capital Fund is $10M. This was assigned to the twenty-one Local Boards based on population, except for the Waiheke and Great Barrier Local Boards who received nominated sums.

3. The programme commenced in September 2012 following resolution of the use of the fund by the Auckland Council Strategy and Planning Committee in August 2012.

Budget Considerations

4. One of the requirements of the Local Board Transport Capital Fund is that the budgets must be spent within the same electoral term. Budgets can be moved from year to year within the electoral term, subject to Auckland Transport having the ability to manage the cash flow, but carry forwards to subsequent political terms are not allowed.

5. The total amount spent on Local Board Transport Capital Fund projects in the 2012-13 financial year was $1.3M. This was due to the late start of the programme in that year so Auckland Council was asked to relax the “no carry forward” rule in this inaugural year of the programme. This one-off carry forward of the unspent balance of $8.7M was subsequently approved.

6. Therefore the total budget that must be spent on Local Board Transport Capital Fund projects in the current political term is as follows:

· The carry forward from 2012-13 = $8.7M

· The 2013-14 Budget = $10M

· The 2014-15 Budget = $10M

· The 2015-16 Budget = $10M

This is a total of $38.7M

7. In order to fully spend this amount by 30 June 2016 the following spending profile will be required.

· 2013-14 Forecast = $8.6M (actual current forecast)

· 2014-15 Forecast = $10.1M (latest forecast)

· 2015-16 Forecast = $20.0M (latest forecast)

8. The 2013-14 figure is the currently expected end of year result for 2013-14. The end of the 2013-14 financial year is the end of the second year of the four year Local Board Transport Capital Fund programme that needs to be completed by 30 June 2016, and only $9.9M of the $40M will be spent. i.e. only 25% spent in half the available time.

9. Conversely, the required spend in the last two years (2014-15 and 2015-16) is $30.1M, being a threefold increase in the spend compared to the first two years. At the current rate of spending this $30.1M target will not be achieved.

10. In addition, the current Local Boards are allowed to spend some or all of the 2016-17 Local Board Transport Capital Fund budget as their elected term finishes three months into this financial year on approximately 30 Sept 2016. This means there is an additional $10M available that could also be spent.

Value of Projects

11. Of the 228 proposals submitted to date 64 are not proceeding (not meeting criteria, funded elsewhere, deferred to future years, or not chosen by Local Boards). The total value of the remaining 164 projects that range from being in the initial assessment phase to having the construction fully complete is $14.9M.

12. Assuming that all of these projects are completed they represent only 37% of the total Local Board Transport Capital Fund programme that needs to be delivered in the current electoral term.

13. Conversely an additional $25.1M worth of projects need to be identified in order to deliver the programme by 30 June 2016.

Forward Planning to Ensure Programme Delivery

14. Additional project proposals need to be identified urgently by Local Boards in order for the programme to be delivered on time.

15. As the spending of the budget is heavily weighted towards the 2015-16 financial year and to a lesser extent the 2014-15 financial year, the issue of Auckland Transport being able to manage the work in those years and the contracting industry being able to carry out the large volume of work become factors in the overall delivery of the programme.

16. Accordingly construction approval will be required for all projects in the programme by 30 May 2015 at the latest so that the last of the physical works construction of the works (in fact half of the whole programme) can be spread out over the entire 2015-16 financial year. Many of these approvals will be required much earlier in order to deliver $10M of work in the 2014-15 year.

17. In order to achieve the 30 May 2015 construction approval date, detailed design approval will need to be provided for all projects no later than 30 November 2014 in order to allow six months for detailed design including consultation and statutory approvals to be completed so that construction approval can be provided on time. As with the construction approvals, much of this detailed design has to happen much sooner in order to deliver the 2014-15 programme.

18. Accordingly the identification of new projects by Local Boards to the total value of at least $25.1M needs to happen by 31 August 2014 at the latest in order for them to be assessed and project scopes and rough orders of cost provided back to the Local Boards for their consideration for detailed design approval. Ideally more projects need to be identified in case some don’t meet the necessary criteria.

19. As the four year programme budgets for each Local Board can be considered as a single budget there is opportunity for Local Boards to consider larger projects that can be funded over more than one year, or that are funded jointly between more than one Local Board. A fewer number of larger projects will be easier to manage and will make delivery of the programme much easier.

20. If the above programme timing is not met Auckland Transport cannot guarantee that the Local Board Transport Capital Fund programme will be able to be fully delivered in the current electoral term.

Project Management Process

21. The time required for managing the various stages of a project can vary significantly depending on the nature and size of the project.

22. Initial assessments of project proposals including the development of Rough Orders of Cost can be relatively quick in the case of simple projects such as new footpaths or the installation of new bus shelters where the work is straight forward and is carried out on a regular basis under other Auckland Transport work streams. In these cases typical costs are known and a turn-around of a few weeks can be achieved.

23. However other one-off projects that may have safety implications that require the gathering of data (site specific surveys, and information such as traffic counts) to determine whether or not the project meets traffic warrants, standards or regulatory requirements, or projects that require initial community input can take up to three months to assess.

24. Detailed design and the development of Firm Estimates of Cost can also vary significantly in terms of the overall time required. Some simple projects require very little design and can take a matter of a few weeks.

25. Other more complex projects require time to gather detailed site information, to carry out consultation with stakeholders, to carry out design including inputs from specialists, to apply for resource consents, and to obtain regulatory approvals such as traffic resolutions or speed limit changes. These projects can take more than six months to design.

26. Construction timeframes can vary significantly depending on the size of the project. Lead time to supply specialist materials for construction, often from overseas, can delay projects. Timing of works to avoid the wetter winter months can also impact on when tenders are let. Delaying of weather sensitive works to construct them at the right time of the year can impact on the overall timing of project delivery.

27. In addition, spreading out the delivery of the construction of works over the whole year can provide a more even workload to the contractors which can result in more favourable overall costs to AT and the Local Boards.

28. All of the above highlights that the timing of the various stages of projects can vary significantly. Straight forward projects can be delivered in a single year; whereas it is not possible to deliver more complex projects within a single year. Many of the Local Board projects fall into this second category.

Auckland Transport Programme Management Process

29. A review of the internal Auckland Transport processes has highlighted a number of improvements that will be made in order to assist with the delivery of this programme of work.

30. Timing of responses back to the Local Boards on initial assessments and on the completion of detailed designs will be monitored more closely to ensure there is no slippage in these approval processes.

31. Rough Orders of Cost and Firm Estimates of Cost will be provided in ranges of price rather than a single dollar figure because of the uncertainty of providing exact figures in the early stages of projects. Rough Orders of Cost carried out at the start of the project can vary by up to 30%, whereas Firm Estimates of Cost carried out in the detailed design phase can vary by 15%.

32. There are examples where previous estimates that have been provided have been too low and additional approvals have been required from the Local Boards. This has caused problems with the Local Board expectation of project costs. More care will be taken in future to provide accurate estimates.

33. It should be remembered that these figures are still estimates and the true cost of the work will only be known when the construction is complete. The reason for this is that there are many factors that can affect the final cost of a project compared to the Firm Estimate of Cost. Three of these are the tendered price from the contractor, unforeseen ground conditions, and relocation/protection of underground services. Every endeavour will be made to keep project costs within the approved budgets.

Consequences of not Delivering the full Programme

34. Auckland Transport CAPEX underspend including from within the Local Board Transport Capital Fund remains under sustained scrutiny by Auckland Council.

35. Auckland Transport is accountable for the current underspend on this significant budget allocation, and reports every quarter to Auckland Council on the accuracy of its CAPEX spend forecasts.

36. It is important that this fund is fully spent each year to ensure that neither its amount nor its process are put at risk when consistently reporting underspends to Council.

Summary of the Budgets and Project Values by Local Board

Local Board	Total Budget 2012-13 to 2015-16 (four years)	Total Value of all Approved Projects and Proposals Being Assessed	Value of New Projects Still to be Identified
Albert Eden	$2,659,732	$1,302,567	$1,357,165
Devonport Takapuna	$1,540,120	$1,104,960	$435,160
Franklin	$1,739,864	$946,555	$793,309
Great Barrier	$400,000	$278,476	$121,524
Henderson Massey	$2,993,512	$1,012,988	$1,980,524
Hibiscus and Bays	$2,399,540	$763,330	$1,636,210
Howick	$3,487,612	$1,147,000	$2,340,612
Kaipatiki	$2,318,064	$1,244,711	$1,073,353
Mangere Otahuhu	$2,071,016	$609,364	$1,461,652
Manurewa	$2,373,256	$472,116	$1,901,140
Maungakiekie Tamaki	$1,979,028	$800,000	$1,179,028
Orakei	$2,199,796	$852,633	$1,347,163
Otara Papatoetoe	$2,197,168	$1,098,584	$1,098,584
Papakura	$1,224,736	$904,747	$319,989
Puketapapa	$1,526,468	$373,000	$1,143,468
Rodney	$1,477,044	$733,000	$744,044
Upper Harbour	$1,348,264	$674,132	$674,132
Waiheke	$800,000	$211,943	$588,057
Waitakere Ranges	$1,324,608	$140,000	$1,184,608
Waitemata	$1,879,156	$192,470	$1,686,686
Whau	$2,071,016	$0	$2,071,016
TOTALS	$40,000,000	$14,862,576	$25,137,424

37. It should be noted that the possible spend of the 2016-17 budget is not included in the above figures.

Suggestions of Projects to be funded from the Local Board Transport Capital Fund

38. Attached is the Pick List of the types of projects that could be funded from the LBTCF programme that has previously been circulated to Local Boards for their information. This list will assist Local Boards to identify potential projects in their areas.

Consideration

Local Board Views

39. This report is for the Local Board’s action.

Maori Impact Statement

40. No specific issues with regard to the Maori Impact Statement are triggered by this report.

General

42. The activities detailed in this report do not trigger the Significance Policy, all programmes and activities are within budget/in line with the Council’s Annual Plan and LTP documents and there are no legal or legislative implications arising from the activities detailed in this report.

Implementation

43. There are no implementation issues.

Attachments

No.	Title	Page
a View	AT Report LBTCF - Pick List for Local Boards	53
b View	AT Report Whau LBTF 0314 attachment	59

Signatories

Author

Phil Donnelly - Team Leader East, Road Design and Development, Capital Development Division, Auckland Transport

Authorisers

Andrew Scoggins - Group Manager Road Design and Development, Capital Development Division, Auckland Transport

Jonathan Anyon - Elected Member Relationship Team Manager, Auckland Transport

Glenn Boyd - Relationship Manager Henderson-Massey, Waitakere Ranges, Whau

Whau Local Board

16 April 2014

Whau

Whau Local Economic Development Action Plan

Chair’s Message

tbc

Introduction

The Local Board’s vision for economic development in the Whau Local Board area is to support the development of its communities and develop opportunities for people to be able to work, play and live in Whau with a range of skilled employment opportunities available.

There are already many employment opportunities within Whau with over 22,000 jobs in around 6,000 businesses present. There is also a diversity of employment opportunities in the area with a strong manufacturing presence and important retail and wholesale employment as well as employment in other sectors that service the local population such as education and health. However, there are also areas of high unemployment as local skills are not necessarily matching the needs of local employers.

The main employment areas of Rosebank Road and the town centres of New Lynn and Avondale provide the bulk of the employment opportunities and their successful development as key industrial and bustling town centres - employing and being used by an increasing number of residents - is critical to improving economic outcomes in Whau.

This economic development action plan has been developed in response to the goals set out in the 2011 Local Board Plan which included a focus on ensuring that:

· More of our local businesses have access to the skilled workers they need now and in the future

· A higher proportion of local people are working locally

· All of our young people leave school with a plan to enter the workforce

· More of the higher intensity developments are of a high quality and are liked by their residents

· Our area has a widely endorsed local economic development plan.

This plan includes a number of actions developed to deliver progress across these areas. It seeks to grow the number of employment opportunities in the industrial area of Rosebank Road, ensure that Whau’s town centres are bustling, with increased pedestrian counts and shopper spending, and ensure that local residents have the skills they need to benefit from the opportunities arising from a stronger local economy.

Setting the scene for growth

Whau has strengths in a number of areas, providing a mix of employment opportunities in its industrial areas and town centres:

· Manufacturing - Whau remains the manufacturing hub of west Auckland and this sector accounts for over a quarter of employment in Whau. These industrial activities are diverse and range from businesses manufacturing heavy equipment, chemicals, non-metallic minerals, polymers and paper products to fabricating metal, furniture making, sail making and food processing. Many of these businesses are supplying international markets.

· Wholesale and retail - The wholesale and retail trades are growing in importance in Whau, and although serving a largely domestic base, contribute significantly to the local economy. New housing planned for New Lynn and Avondale and the consequent population gain will further stimulate growth in both these sectors and the community services sector.

Alongside these sectors there is also significant employment in education and training and health care sectors that service the local population. These sectors are likely to increase in their significance as the population of Whau increases.

The majority of employment lies within the Rosedale and New Lynn areas and further development of these areas will contribute significantly to economic success.

Rosebank Business Precinct - Rosebank already carries the tag of being the “Manufacturing Hub” of the west and the area provides the largest number of local jobs. The Rosebank 2030 Business Precinct Plan seeks to develop the potential of the Rosebank area and support the increased employment of local workers, retention and growth of existing industries, attraction of new businesses to the area, improvement in productivity and to encourage GDP growth. Rosebank has the potential to be not only a hub for manufacturing businesses, but also a transport and logistics centre and hub of innovation in west Auckland. The precinct offers strong transport links for businesses located there - for both international and domestic freight and for staff. It has the quickest route to the Port of Auckland from any Auckland industrial area and easy access to both southern and northern motorway links. The Waterview interchange and SH20 extension will provide faster access to Auckland International Airport.

New Lynn - The continuing extensive regeneration of the New Lynn Metropolitan centre includes a major upgrade of rail facilities and transport improvements and high quality, medium-density housing developments. The completed transport components of the plan are already increasing the appeal of the area to new residents and businesses. The vision is that by 2030 New Lynn will be a unique, sustainable, urban centre focused on a world-class transit interchange capable of attracting and maintaining a population of 20,000 residents and 14,000 workers. It will be a vibrant and cosmopolitan place reflective of the rich diversity of the community and the special characteristics and pride that come from being “out west”. Construction of housing and the proposed extension to LynnMall will provide significant opportunities for both the supply of local materials and for local workers to participate in the local economy. With the growth in population, demand for retail and community services workers will also increase. Outlying commercial precincts of the development area will provide attractive and well serviced spaces for new businesses to locate. It is important to plan for the development of the necessary skills to ensure existing and new businesses can flourish.

While undoubted opportunities exist in capitalising on the potential that exists within Whau’s commercial areas, a history of high unemployment and difficulty experienced by local employers recruiting skilled workers, will act as a brake on improving economic outcomes for all Whau residents. This provides a strong incentive to enable local people – particularly youth – to gain the skills they need to find rewarding employment. Skills development programmes need to focus strongly on employment outcomes, be closely aligned to the work standards and skills required by local employers, and be forward thinking in order to capitalise on the opportunities provided by large local projects.

Objectives and plan development process

The objectives of this plan are to:

· create a framework to guide local economic development actions for the Whau Local Board area for the next 1-3 years and beyond

· facilitate effective engagement between deliverers of economic development initiatives and Whau Local Board

· provide a key mechanism for the Whau Local Board to communicate with the local business community and residents, around the area’s economic development, future prosperity and wealth creation

· provide a set of priority economic development actions and initiatives for inclusion in the next Whau Local Board Plan, future Local Board Agreements and Council’s next Long Term Plan

The plan development process has included:

· Research and analysis – a Whau Local Board Economic Overview has been developed in parallel with this action plan and reference has been made to local research and strategic documents including the New Lynn Urban Plan 2010-2030, the Rosebank 2030 Business Precinct Plan and the Strategic Plans of BIDs in New Lynn, Rosebank, Avondale and Blockhouse Bay

· Strategic context development – see below

· Stakeholder conversations - a programme of targeted public and private sector stakeholder interviews and consultation has been undertaken.

Franklin Local Economic Development Action Plan

Strategic context

The Whau Economic Development Action Plan has been developed to complement and support Auckland Council’s key strategic documents and they include the:

· Auckland Plan

· Auckland Economic Development Strategy (EDS)

· Whau Local Board Plan

The plan also has regard to and takes direction from, other national, regional and local plans and strategies and data including the government’s Business Growth Agenda, ATEED plans, including the Business Growth and Competitiveness Framework, and local BID strategies for Avondale, New Lynn, Rosebank and Blockhouse Bay.

Key strategic drivers

Key drivers for Whau’s economic growth and prosperity

Auckland Plan

Auckland Economic Development Strategy

Whau Local Board Plan

Other Plans

· Mayor’s Vision: the world’s most liveable city

· Moving to a quality compact city

· Building a business friendly well functioning city

· World Class infrastructure – effective transport linkages, High speed broadband, effective waste management

· Growing skills, education and learning including business capability and management skills and reflecting the range of skills necessary to support a diversity of sectors and services.

· Supporting a diverse ethnic economy

· Auckland becoming a model eco- city where ecological protection, economic development and prosperity go hand in hand.

· Innovation as a key component of business success and development of internationally competitive products and services

· Outlines Economic Development Strategy priorities

· Grow a business friendly and well-functioning city

· Develop an innovation hub of the Asia-Pacific rim

· Be internationally connected and export driven

· Enhance investment in people to grow skills and a local workforce

· Develop a creative, vibrant international city

· cross-cutting themes

Auckland’s Economic Growth Goals

6 % + increase in regional exports

5 % + rise in GDP

2 % + productivity growth

· Supporting diverse communities

· Bustling towns, local and neighbourhood shops

· Building economic prosperity

· Co-ordinating development of New Lynn, Rosebank and Avondale

· Local action for the environment

· Enriching arts and culture

Key Economic Projects/initiatives :

· Residents working locally and employed locally

· Closing skills-employment gap

· Continue to develop Rosebank Business Precinct as a hub of manufacturing, logistics and innovation for West Auckland

· Maximising opportunities offered by the New Lynn re-development project

· Improving transport congestion impacting on business activity

· Supporting local Māori

Government business growth agenda

· Growing Export Markets - Ratio of exports to GDP to 40% by 2025 from 30% today

· Building Infrastructure

· Skilled workplaces

· Build capital markets

· Building innovation

ATEED Business Growth & Competitiveness Framework through Strategic Initiatives, Growth Programmes and Sector/Thematic Projects and Plans:

· Enabling business growth in sectors of comparative advantage

· Building business capability and performance development

· Enhancing Auckland’s innovation ecosystem

· Facilitating internationalisation, international business and investment attraction

· Supporting the development of an appropriately skilled Auckland workforce

· Developing, promoting & marketing tourism destination and visitor services

· Attracting and/or delivering major events and convention activity

· Articulating/promoting Auckland’s unique identity to attract international businesses, residents and visitors

Key Local Drivers for Economic Growth

Productivity

Growth

Exports

Skills & Local Employment

· Alignment of skills programmes with the needs of the local business community

· Forward planning to prepare for employment opportunities offered by local projects

· Increasing participation of youth, Maori and ethnic/immigrant communities in programmes that improve skills and employment outcomes

Leveraging Local Opportunities

· Growing local businesses and employment opportunities offered by local urban and industrial development projects

· Co-ordination of New Lynn, Avondale and Rosebank opportunity districts

· Attraction of new businesses

· Creating local community hubs for education and economic development activities

Growing Businesses and Exports through Innovation and Capability

· Leading local business growth through partnership and collaboration

· Developing pathways for innovative business growth in sectors of strength

· Setting the foundations for innovation and growth through supporting and encouraging local youth

· Increasing participation of local businesses in business capability development programmes

· Developing new local business through innovative thinking and community participation

Plan Delivery – A partnership approach

The Whau Local Economic Development Plan creates a framework to guide local economic development actions for the Whau Local Board area. Its aim is to facilitate effective engagement and partnership between the deliverers of economic development initiatives and the Whau Local Board to enable effective implementation:

Yearly review, monitoring and work programme

This action plan forms the implementation and work programme for the Local Board to deliver on its economic development objectives. Prior to each new financial year Auckland Council’s Local Economic Development team will hold a planning workshop with the Whau Local Board. At the workshop, there will be a review of the Action Plan. Completed actions will be removed and new actions added. The action plan will then be finalised as the local economic development work programme for the coming financial year.

This process will keep the action plan current and relevant, provide the opportunity to assess outcomes and also for the development of proposals for funding of local economic development projects for inclusion in the Local Board Agreement and Council’s Annual Plan, and/or the next iteration of the LTP.

Whau Local Economic Development Plan – Actions

	Ongoing activity
	Recommended priority
	For future consideration

1	AEDS : Grow a business friendly and well functioning city
1	WLBP : Bustling towns and neighbourhood shops \ Co-ordinating the development of the New Lynn, Rosebank and Avondale opportunity area
Key local initiatives and projects		Interested Parties	Timescale	Status		ED Outcomes / Progress measures
Bustling towns and neighbourhood shops
ACTIONS
1.1	Continue support for Business Improvement Districts and Mainstreet programmes in New Lynn, Rosebank, Avondale and Blockhouse Bay to encourage businesses to maintain a clean, attractive, locally unique business environment and investigate bylaws that support this.	Local Board, New Lynn BID, Rosebank BID, Avondale BID, Blockhouse Bay BID, Auckland Council, Local communities	Ongoing		Active Partnership Programme MOUs in place with 2 BIDS	Shops are busy and successful Attractive business environment Businesses retained and attracted Local communities are involved in creating and maintaining the standard of local districts
1.2	Attract a major retail anchor tenant to Avondale to stimulate growth of the town centre and ensure such development contributes to the revitalisation of the existing street based town centre	AC RLP, Avondale BID	In progress		Investigation through Avondale development programme	Improved retail mix
1.3	Support expansion of LynnMall, and encourage redevelopment of the Memorial Drive frontage as a premier retail strip and interface with New Lynn.	AC, Kiwi Income Property Trust, New Lynn BID, ACPL	As appropriate		Requires scoping	Additional retail activity
Key local initiatives and projects		Interested Parties	Timescale		Status	ED Outcomes / Progress measures
1.4	Develop local hubs for education and economic development activities. Explore where there are opportunities for such development to help support regeneration of the existing centre.	Local Board, AC, ATEED, CDAC, BIDs	Next 1-3 years		Requires scoping	Improved educational facilities
Co-ordinating the development of the New Lynn, Rosebank and Avondale opportunity area
ACTIONS
1.5	Develop a unified plan to guide BID’s in collaborating to support the growth of the economy in the Whau area through: · support the expansion of BIDs to improve their sustainability, increase resources and capacity which will strengthen the BID programmes and support their local businesses · establishing competitive advantages and a point of difference for each town centre to underpin the development of branding and marketing strategies · co-ordinating improvements to the town, local and neighbourhood centre environments including streetscape developments, safety, graffiti removal, cleaning and maintenance of civic spaces, heritage features · increasing awareness of retail offerings in New Lynn and Avondale · evaluate opportunities for further development of the leisure and evening economy in New Lynn · identify a brand proposition for the New Lynn metropolitan centre and develop a marketing strategy	Local Board, Local BIDs, Auckland Council ED, CDAC	Year 1-3		Further scoping and budget required to proceed with this action	Coordinated approach supports complementary activity and growth across Whau Local Board area Capacity of BIDs is raised.
Key local initiatives and projects		Interested Parties	Timescale		Status	ED Outcomes / Progress measures
ACTIONS
1.6	To support business attraction and retention · Introduce best practice business-friendly processes to identify and reduce regulatory and non-regulatory barriers, costs, risks and uncertainties	Local Board (advocacy), Local BID’s, AC operational and regulatory teams,	Ongoing		Underway	Improved ease of doing business in Whau
1.7	To support business attraction and retention improvements to local transport where congestion is negatively affecting the movement of commercial freight and accessibility is an issue for the employees of local businesses.	Auckland Transport	Year 1-5 ongoing		Reported through Auckland Transport work programmes	Reduced business costs. Progress on transport related actions reported by Auckland Transport.
1.8	Support key multi-national corporations (MNC’s) in the Whau Local Board area via Auckland’s Aftercare programme	ATEED	Ongoing		Further scoping and budget required to proceed with this action	Retention of business activity in Whau
1.9	Identify available greenfield and brownfield commercial property development sites in Whau over 2ha Regional project delivered locally.	Auckland Council, ATEED, Commercial property agents, BIDs, AC RLP	Needs scoping		Process to be developed for regular updates	Greater visibility of options for investees
1.10	Continue to support the implementation of the New Lynn Urban Plan 2010-2013 and development of the New Lynn Metropolitan centre	Local Board, New Lynn BID, AC City Transformation and ED	Ongoing		Further work requires scoping – Refer to AC City Transformation team	Catalyse economic growth in New Lynn and realise potential of the development
1.11	Evaluate implementation of and refresh the Rosebank 2030 Business Precinct Plan and continue to support implementation	Local Board, Rosebank BID, Auckland Council ED	Year 1-2		Needs scoping	Data brought up to date and delivery agents buy-in to supporting growth in Rosebank
1.12	Continue development of the Avondale Town Centre Action Plan	Local Board, Avondale BID, AC RLP	Year 1-3		Underway	Increased vitality and prosperity in Avondale

Key local initiatives and projects		Interested Parties	Timescale	Status	ED Outcomes / Progress measures
ACTIONS
1.13	Consider options for the future operation of the Avondale Racecourse to enable the greatest economic output possible.	Avondale Jockey Club, Auckland Council, Local Board, Avondale BID, ATEED	Commenced	Further scoping and budget required to proceed with this action	Additional economic uplift in Whau
1.14	Support the deployment of Ultra-fast Broadband (UFB) through :- · Assisting with the evaluation of suitable community locations as hubs for business access as a component of the UFB deployment programme · Making available suitable computer equipment and internet in selected local community hubs (e.g. Kelston Community Hub, Libraries) · Appointing local businesses leaders and Local Board members as champions to advocate the business benefits of high-speed broadband · Advocating for Chorus to increase the scope of the roll out i.e. make UFB available beyond ground floor level	Local Board, Auckland Council ED digital team, BIDs, ATEED	Year 1-5	Underway	Increasing digital economy

2	AEDS : Develop an innovation hub of the Asia-Pacific rim
2	Whau : Encouraging innovative business activity in the Whau area to stimulate business growth and exports
Key local initiatives and projects		Interested Parties	Timescale	Status	ED Outcomes / Progress measures
Encouraging innovative business activity in the Whau area to stimulate business growth and exports
ACTIONS
2.1	Identify opportunities for new business growth particularly for firms in the manufacturing, wholesale, retail, logistics/warehousing and storage, eco business and community services industries	ATEED, BIDs, Unitec,	Complete	Further scoping and budget will be required to proceed with further programmes.	Growth outcomes for pilot participants Increased levels of participation and resulting skills and capability improvement
2.2	Capture and communicate case studies of a diverse mix of innovative local businesses to inspire others	ATEED, BIDs	Year 1	Further scoping and budget required to proceed with this action	Visibility and profile of local business innovation
2.3	Expand the Young Enterprise Scheme to include more secondary schools within the Whau Local Board area to encourage their participation in the YES programme 2014/15	ATEED, Unitec	Year 1-3	2 West schools involved last year (no Whau schools) but engagement very low compared to North, Central and South i.e. only 4 teams entered last year vs. 80-120 teams in other areas.	All schools in Whau have teams participating by 2015.

Key Local initiatives and projects		Interested Parties	Timescale	Status	ED Outcomes / Progress measures
ACTIONS
2.4	Establish a Business Growth Group led by the Local Boards to both guide and support the local delivery of services specific to growing Whau’s local businesses and economy Participation to include: Business Associations, selected local trusted advisors and service providers e.g. a major bank, accountants, lawyers, local business leaders, owners of local businesses representing growth industries, EMA, Chamber of Commerce, Manufacturers and Exporters Assn	Local Boards, economic agencies, BIDs, Unitec, ATEED	Year 1-3	Further scoping and budget required to proceed with this action	Identifying additional opportunities for economic development and for improvements to business support services
2.5	Deliver Regional Partner Programme (RPP) initiative within Whau, aimed at developing more innovation based entrepreneurs and building business capability and performance. Promote services offered under RPP to key industry groups, BIDs and target companies. Capture and communicate case studies of a diverse mix of innovative local businesses to inspire others	ATEED, BIDs	Year 1	Underway Further scoping and budget required for case study work	Business capability services are promoted to Whau’s innovation based entrepreneurs. Visibility and profile of local business innovation
2.6	Promote the business mentors programme locally to maximise the participation of local companies.	ATEED, BIDs	Year 1	Underway	Business mentoring services are promoted to Whau’s businesses.

3	AEDS: Become internationally connected and export driven
3	Whau : Building business capability and skills to support business growth
Key local initiatives and projects		Interested Parties	Timescale	Status	ED Outcomes / Progress measures
Building business capability and skills to support business growth
ACTIONS
3.1	Maintain a comprehensive data base of local businesses with information relevant to supporting and tracking their business capability, growth and export activity	ATEED, AC ED, NZTE, BIDs	Ongoing	Underway	Improved market intelligence and ability to share information and capture business outcomes
3.2	Provide business capability support through ATEED’s delivery of the Regional Partnership Network Programme (NZTE), the Business Growth Programme, Business Mentors New Zealand service and the Starting off Right programme	ATEED, NZTE, Business Mentors New Zealand, BIDs	Ongoing	Underway	Improved business capability
3.3	Work with local secondary schools to develop opportunities for International Education	ATEED Study Auckland	Ongoing	Underway	More international students studying in Whau
3.4	Document and communicate the range of support services available to local businesses	ATEED, NZTE, BIDs, Whau Local Board	Requires scoping	Underway. ATEED website upgrade including more information of services provided due for completion Dec 2013	Improved access to support services for businesses
3.5	Support and deliver business networking programmes to enable local business people to make business connections.	West Auckland Business Club, Waitakere Business Club, Rosebank Business Assn, New Lynn Business Assn, ATEED, BIDs	Ongoing	Underway	Improved business relationships and opportunities to collaborate
3.6	Support and promote the delivery of ATEED’s programme of local business events and networking functions to businesses in the Whau Local Board area	ATEED, IRD, Unitec, Whau Local Board	Ongoing	Underway	Improved business capability
Key local initiatives and projects		Interested Parties	Timescale	Status	ED Outcomes / Progress measures
3.7	Support and promote the delivery of local business growth advice and assistance.	ATEED, Whau LB	Ongoing	Underway	Business growth services are promoted to Whau’s businesses.
3.8	Support business capability and recognition of success through a local business awards programme	ATEED	Periodic	Underway	Recognition of success
3.9	Assess the Massey Matters programme and the value of establishing a similar programme for businesses in Whau.	CDAC	Year 1-3	Further scoping and budget required to proceed with this action	Understand suitability of programme for Whau and potential flow on effects

4	AEDS : Enhance Investment in people to grow skills and a local workforce
4	WLBP : Local businesses have access to skilled workers they need now and in the future Local people are working locally Young people leave school with a plan to enter the workforce
Key local initiatives and projects		Interested Parties	Timescale	Status	ED Outcomes / Progress measures
Local businesses have access to skilled workers they need now and in the future
ACTIONS
4.1	Undertake analysis of the levels of alignment between skills and behaviours required by local employers, and the skills and behaviours delivered by locally based tertiary education providers.	Whau Local Board, ATEED, ED, CDAC, COMET	Year 1-3	Further scoping and budget required to proceed with this action	Alignment of skills and behaviours being taught with expectations of local employers. Higher level of placements and employee retention.
4.2	Develop and implement an operational framework that ensures maximum alignment between industry skill and behaviour requirements and workforce skill and behaviour capabilities.	Whau Local Board, ATEED, ED, CDAC, COMET	Year 1-3	Further scoping and budget required to proceed with this action	Tertiary education programmes deliver graduates with the skills and behaviours that industry needs. These outcomes are delivered at manageable resource cost. Supply and demand sides of the jobs market are effectively aligned. Appropriately qualified local workers are available to fill local job vacancies.
4.3	Develop forward planning process to pre-empt local skill requirements and maximise opportunities for local employment related to major projects e.g. construction and operation of LynnMall expansion and construction of residential buildings in New Lynn and Avondale.	Unitec (Heather Stonyer)	Year 1-3	Workforce road-mapping. Underway	Enough appropriately skilled local workers are available at the right time to meet the needs of significant local projects
Key local initiatives and projects		Interested Parties	Timescale	Status	ED Outcomes / Progress measures
Young people leave school with a plan to enter the workforce
ACTIONS
4.4	Support Youth Guarantee activities, including fees free programmes and networks to increase the participation of local youth in gaining a coherent and relevant foundation education that leads to skill development at L4+. Advocate for closer working between WINZ and schools	MoE TEC, Local Board, COMET, CDAC,	Ongoing	Active Programme	The number of young people with a clear pathway and relevant foundation education increases The number of young people progressing onto skill development (further education or training) at L4+ in increases
4.5	Identify sources of additional funding to allow Youth Connections and Gateway programmes to be offered through all colleges in Whau	CDAC	Year 1-3	Underway	Continuation of programme
4.6	Work with TEC to ensure that an appropriate number of apprenticeships are available in Whau	TEC	Year 1-3	Underway	Skilled workforce in Whau

5	AEDS : Develop a vibrant, creative international city
5	WLBP : Enriching arts and culture Higher intensity developments are of a high quality and are liked by their residents
Key local initiatives and projects		Interested Parties	Timescale	Status	ED Outcomes / Progress measures
Enriching arts and culture
ACTIONS
5.1	Work with Unitec on potential opportunities for the Whau Local Board resulting from possible redevelopment of their existing campuses; such as establishment of a creative education and business innovation hub in New Lynn. Advocate for re-use of sites that contribute positively to the Whau Local Board area.	Auckland Council, ATEED, Local Board, Unitec	Requires scoping	Underway	Possible new facilities in Whau
5.2	Look for opportunities to support a stronger arts and cultural environment including a ceramics centre, building on the strong heritage of West including the Whau area and the cultural diversity of the current population	West Local Boards	Year 1-3	Further scoping and budget required to proceed with this action	Improved vibrancy of local economy
5.3	Continue a programme of local community events to celebrate the artistic and cultural heritage of the Whau area	Local board, AC local events team, BIDs	Ongoing	Underway	Improved vibrancy of local economy
Higher intensity developments are of a high quality and are liked by their residents
ACTIONS
5.4	Ensure spaces, facilities and infrastructure in Whau follow art design practices and are of a high quality.	Local Board, Auckland Council	Ongoing	Underway	High quality developments

6	AEDS : Sustainable eco-economy
6	WLBP : Local action for the environment
Key local initiatives and projects		Interested Parties	Timescale	Status	ED Outcomes / Progress measures
Local Action for the environment
ACTIONS
6.1	Investigate opportunities for eco-business growth in Whau	Sustainable Business Network, AC, BIDs	Year 1-3	Further scoping and budget required to proceed with this action	New business opportunities
6.2	Assess opportunities to access the Waste Minimisation and Innovation Fund (WMIF)	AC waste team, BIDs	Year 1-3	Further scoping and budget required to proceed with this action	Improved processes and reduction in business costs
6.3	Explore opportunities for partnerships between council, private sector investors and local businesses on commercial ventures that contribute to building a sustainable economy through local management of emissions, waste, recycling and organic food production etc.	Sustainable Business Network, AC, BIDs	Year 1-3	Further scoping and budget required to proceed with this action	Increasingly sustainable local economy
6.4	Develop and communicate mechanisms to reduce the amount of waste to landfill produced by local businesses and encourage local eco-business innovation and sustainable business practices	AC waste team, Local Board, BIDs	Year 1-3	Further scoping and budget required to proceed with this action	Improved environmental outcomes

7	AEDS : Iwi-Maori Economic Powerhouse
	Whau : Working closely with Mana Whenua, urban Maori and iwi development agencies to support developments And ensure activities are progressed appropriately and efficiently
Key local initiatives and projects		Interested Parties	Timescale	Status	ED Outcomes / Progress measures
Working closely with Mana Whenua, urban Maori and iwi development agencies to support developments
ACTIONS
7.1	Work with Mana Whenua, urban Maori, local iwi; Te Kawereau a Maki and Ngati Whatua o Orakei and Maori development agencies to support the 6 goals of the Crown-Maori Economic Growth Partnership and activities identified in their Action Plan 2012-2017 · Greater educational participation and performance · Skilled and successful workforce · Increased financial literacy and savings · Government, in partnership with Maori, enables growth · Active discussions around the development of natural resources · Maori Inc as a driver of economic growth · programmes designed to improve skills, employment, business outcomes and entrepreneurial initiatives of local Maori	Local Board, ATEED, AC Maori strategy team and ED, Iwi and Maori businesses	Year 2-5	Requires scoping	Greater participation by Maori businesses and improved capability

8	Innovative rural & maritime economy
Key local initiatives and projects		Interested Parties	Timescale	Status	ED Outcomes / Progress measures
ACTIONS
8.1	Collaborate with the Local Boards that border onto the Manukau Harbour on plans to optimise the economic benefit of the harbour	ATEED, neighbouring Local Boards	Long term	Further scoping and budget required to proceed with this action	Increased visitor economy

9	AEDS : Diverse ethnic economy
9	WLBP : Supporting our diverse communities
Key Local initiatives and projects		Interested Parties	Timescale	Status	ED Outcomes / Progress measures
Supporting our diverse communities
ACTIONS
9.1	Expand library collections to cater for a diverse population where English is a second language)	Local Board, Auckland Council Libraries, CDAC	Year 1-3	Part of regional plan for libraries	Improved access for diverse populations to information
9.2	Undertake targeted interventions to : · improve skills and employment outcomes for ethnic/immigrant communities · increase the participation of local immigrant communities in employment training programmes · increase participation of local migrant owned businesses in business associations and other business focussed events	Local Board, Auckland Council CDAC , COMET, E-SALT, ARMS	Year 1-3	A migrant settlement team exists within CDAC for the West- but does not yet focus on employment issues. E-SALT work currently regional and not yet focussing on local board areas. ARMS providing training to South and Central areas, but not West	The settlement team within CDAC broaden their role to include employment as an outcome. An increased number of local ethnic/immigrant workers are in employment ARMS extends service offering to include West and Whau E-SALT activities extend to local board areas.
9.3	Support the efforts of groups (including the Waitakere Ethnic Board) to address issues around immigrant exploitation	Auckland Council CDAC	Year 1-3	Underway	CDAC advise of considerable problems with immigrant exploitation which need to be addressed before there can be meaningful progress in approaching business growth in this segment.
9.4	Work with MSD to increase the number of hours available for ESOL programmes to ensure all graduates are employment ready	MSD	Year 2-3	Further scoping required to proceed with this action	Students gain employment

Whau Local Board

16 April 2014

Whau Neighbourhood Greenways Project

File No.: CP2014/05317

Purpose

1. This report seeks the Whau Local Board’s approval of proposals to progress the Whau Neighbourhood Greenways project.

Executive Summary

2. A draft Whau Neighbourhood Greenways Report (and associated maps) has been developed which seeks to identify all of the possible greenways projects within the Whau Local Board area, including proposed Auckland Transport walkway/cycleway projects.

3. Stage 2 of the project will build on this information to finalise the Greenways Plan, including assigning priorities to possible greenways projects and preparing a promotion/publicity plan to facilitate easy identification of greenway locations and encourage their use. Further public consultation will be carried out on these issues.

Recommendations

That the Whau Local Board:

a) Adopts the draft April 2014 Whau Neighbourhood Greenways Plan.

b) Approves the goal and objective for the Whau Greenways project, as set out in Attachment A to this report.

c) Approves the criteria to aid prioritising of greenways projects, as set out in Attachment B to this report.

d) Approves the priority list of eleven greenways projects, as set out in this report, for further work within the next three year term.

e) Directs that concept plans be prepared for each of the eleven priority greenways projects, including visual representations, and that these concept plans be brought to a workshop of the Whau Local Board by the end of June 2014 for consideration of which projects should be prioritised for more detailed planning and local consultation

f) Directs that a promotion/publicity plan be prepared as part of the final Whau Neighbourhood Greenways Plan

g) Approves the Consultation Plan as outlined in Attachment C to this report

h) Approves funding of $5,000 from the local board to cover the costs of consultation on stage 2, and production and printing of the final Whau Neighbourhood Greenways Plan.

Discussion

4. Greenways plans have been completed in the adjoining local board areas of Albert/Eden and Puketepapa, and work is now progressing in the adjacent Henderson/Massey Local Board area as part of the Henderson Massey Open Space Networks Plan.

5. Greenways Plans are long-term plans for improving walking, cycling and ecological connections across the region, thus contributing to achieving the vision of Auckland as the world’s most liveable city. The individual projects identified in the Greenways Plan would be prioritised and funded by successive local boards over the next 50 years.

6. At the request of the Whau Local Board, over the past eighteen months staff have been collecting and mapping information on possible new greenways routes in the Whau Local Board area, including proposed Auckland Transport walkway/cycleway projects. Links into neighbouring Local Board areas have been identified, and in addition, this project mapped potential greenways routes in the adjacent Glen Eden area. The public were consulted on the maps at the New Lynn night market on 22 August 2013.

7. The information collected was pulled into a draft report and maps, titled the ‘Whau Neighbourhood Greenways - Draft Report December 2013’ which was tabled at the Local Board workshop of 4 December 2013. Minor changes have been made, and a new draft issued in April 2014. Copies of the ‘Whau Neighbourhood Greenways Plan, Draft April 2014’ have been made available to local board members, and at the Whau Local Board offices. It is proposed that this report be endorsed by the local board.

8. The Glen Eden greenways have now been separated out and reported to the Waitakere Ranges Local Board.

9. A meeting of local greenways interest groups was held on 3 December 2013 at the New Lynn Community Centre, to consider priorities for greenway construction in the Whau Local Board area. This meeting was also attended by a number of local board members. A map was produced summarising the views expressed at the meeting, and was provided to the Local Board.

10. Two workshops of the Whau Local Board were held on 4 and 11 December 2013 to consider the goal and objectives for the Whau Neighbourhood Greenways project, the criteria to aid in prioritising greenways projects and possible priority projects to be progressed within the three year term of the local board plan. Thirteen greenways projects were identified for further work.

11. It is proposed that the Whau Local Board adopts the goal and objective for the Whau Neighbourhood Greenways as set out at Attachment A. Te Kawerau a Maki has requested an additional objective to improve management of sites of cultural significance and celebrate cultural history associated with greenways areas. This has been added.

12. It is proposed that the criteria to help with the setting of priorities for greenways projects (listed in Attachment B) be adopted.

13. Initial cost estimates were carried out on the thirteen greenways projects and an analysis undertaken against the prioritisation criteria. This information was brought to a workshop of the local board on 5 March 2014, and after consideration, the local board reduced the list to eleven priority projects.

· Archibald Park to Avondale West

· Holly street to Heron Park

· Harmel Reserve to Maybelle Place

· Archibald Park to Lynnwood Road

· Riverside Rd to Rizal Esplanade

· Miranda Reserve connections

· McWhirter St to Buzby St

· Craig Avon Park

· Cliff View Drive to Godley Rd (via Green Bay Domain)

· Riversdale Reserve perimeter walkway

· Maybelle Place to Cobham Reserve (esplanade)

This report seeks the local boards approval of these eleven greenway priorities for further work within the next three year term.

14. The local board requested that concept plans should be prepared for each of these eleven projects, including visual representations, and that the concept plans be reported back to the Whau Local Board for consideration of which projects should be progressed to the next stage of more detailed planning and local consultation.

15. Publicity, promotion and good signposting of Greenways is considered important in informing residents and visitors of the locations of greenways routes and encouraging people to use them. It is proposed to utilise the proposed public consultation and to work with the Communications Team of the council, to gather ideas on how best Greenways could be publicised, promoted and signposted. This material would form part of the final Greenways report.

16. Stage 2 of the Whau Neighbourhood Greenways Plan, which would bring it to completion, would be undertaken during the 2014 calendar year. This stage would see the remainder of the greenways projects (excepting the eleven already identified as top priorities) grouped into high, medium and low priority projects, as a guide for future Local Boards, and would include the plan for greenways promotion.

17. A proposed public consultation plan for Stage 2 of the Whau Neighbourhood Greenways Plan is attached (Attachment C).

18. An amount of $5,000 is sought from the local board to cover the costs of public consultation on Stage 2 of the plan, plan layout using Auckland Council branding guidelines, and printing of the final Whau Neighbourhood Greenways Plan.

Consideration

Maori Impact Statement

19. The tangata whenua of the Whau Local Board area Te Kawerau a Maki and Ngāti Whātua o Orakei.

20. Te Kawerau Iwi Tribal Authority has provided the council with a letter of support for the Whau Neighbourhood Greenways Plan (dated 22 January 2014), and has outlined in general terms the importance of the Whau region for Te Kawerau a Maki, providing a short list and plan of some of the important sites and features (refer Attachment D).

21. A meeting with Malcolm Paterson of Ngati Whatua o Orakei took place on 25 November 2013. It is noted that Nga Rima o Ngati Whatua agreed that Orakei should represent the Ngati Whatua position in this case. The notes of the meeting are attached (Attachment E). It is anticipated that a contract for Ngati Whatua to identify places of particular cultural significance along Whau Greenways routes will be organised in the coming months.

General

Implementation Issues

22. The concept plans and visual representations, together with more detailed cost estimates for the eleven priority greenways projects will be brought to a workshop of the Local Board by the end of June 2014. The Local Board will then be in a position to consider which greenways projects should be progressed to the next stages of more detailed planning, local consultation, consultation with iwi and relevant agencies such as the Department of Conservation, and resource consents (where needed) prior to construction.

23. During the next few months, public consultation will be undertaken to progress Stage 2 of the Greenways project, and will be reported to a workshop of the Local Board in June.

Attachments

No.	Title	Page
a View	Whau Neighbourhood Greenways - Goal and Objectives	101
b View	Whau Neighbourhood Greenways Criteria to help with the setting of priorities for Greenways Projects	103
c View	Public Consultation Plan for Stage 2 of the Whau Neighbourhood Greenways Project	105
d View	Letter from Te Kawerau Iwi Tribal Authority, 22/01/14	107
e View	Notes of a meeting with Ngati Whatua o Orakei on 25/11/13	109

Signatories

Author

Jenny MacDonald - Strategic Advisor Waitakere

Authorisers

Penny Pirrit - Regional & Local Planning Manager

Glenn Boyd - Relationship Manager Henderson-Massey, Waitakere Ranges, Whau

Whau Local Board

16 April 2014

Local board feedback on the Local Boards Funding Policy Review

File No.: CP2014/06442

Purpose

1. This report seeks formal feedback from local boards on the work to date on the Local Boards Funding Policy Review.

Executive Summary

2. Auckland Council is required to adopt a Local Boards Funding Policy. The current policy was developed within a context of retaining and reflecting legacy council service level and funding decisions. After three years more has been learned and a broader policy discussion can be undertaken.

3. The review seeks to find the most appropriate funding mechanisms for local board expenditure on asset based services such as parks, libraries, recreation and community facilities and non-asset based services (locally driven initiatives). During the course of the review, equity issues for asset based service levels have been raised, which cannot be resolved via the Local Boards Funding Policy. Resolving these issues will have implications that can only be addressed as part of the wider planning and budgeting process. The review recommends retaining the current funding model for asset based services, but considers options for changing to a fairer funding model for locally driven initiatives.

4. The timing for the review proposes public consultation in June 2014 to enable a policy to be adopted to form the basis of local board budgets for inclusion in the draft Long-term Plan 2015-2025. In order to meet that timeframe engagement with local boards needs to take place in March and April 2014. This will enable the council to consider local board views in determining a proposal for consultation with the public.

5. A report has been produced setting out options for the Local Boards Funding Policy and the key issues that need to be resolved. This report, “Local boards funding policy review” is appended as Attachment A to this report, and will form the basis of engagement with local boards and the Governing Body to inform decision making on the policy.

6. On 20 February 2014, the Governing Body agreed the parameters for engagement with local boards on the review of the local boards funding policy. These parameters include:

· no changes being made to the split between regional and local activities or to decision making responsibility for setting service levels for local activities

· time frame for the review

· structure of the policy that is to be considered

· Governing Body, via operational groups, will work on equity issues in regard to asset based service levels as part of long-term plan process

· options for a formula based funding allocation

· parameters for the use of local rates

· undertaking a review of the council rates remission and postponement legacy schemes that support community and sports related services, and natural, historic or cultural heritage, alongside the review of the Local Boards Funding Policy.

7. Informal engagement with local boards has been undertaken throughout February and March 2014, and formal feedback is now sought from local boards via resolution.

8. Following the engagement phase of the policy, all feedback will be presented to the Local Boards Funding Policy Political Working Party in early May, and subsequently the Governing Body when considering the draft policy for consultation in late May.

Recommendation

That the Whau Local Board:

a) Agrees to consider the policy framework for the Local Boards Funding Policy Review and provide formal feedback on the issues discussed and other associated issues.

Discussion

9. At the 20 February 2014 meeting of the Finance and Performance Committee^{^[2]}, the following resolutions were passed to guide the engagement phase of the Local Boards Funding Policy:

a) agree with the following parameters for the review of the Local Boards Funding Policy for engagement with local boards based on the attached report “Local boards funding policy review”:

b) note that the review of the Local Boards Funding Policy will not change decision making responsibility for:

i) the split between regional and local activities

ii) the setting of service levels for local activities.

c) note that the proposed model for funding asset based services is the same model that is currently used.

d) note that the Local Boards Funding Policy cannot resolve issues relating to differing asset based service levels and that the issue will be considered as part of the planning process for the long-term plan

e) agree to adopt the policy by August 2014 to enable clarity in funding decision making to provide predictability of funding in the preparation of local board plans and budgets for the draft Long-term Plan 2015-2025. This will require the policy to be publically consulted on in June 2014.

f) agree that the policy improve alignment between funding and expenditure decisions, by having separate funding mechanisms for:

i) asset based services, such as parks and swimming pools, where service levels in each board area are primarily driven by the Governing Body decisions on the number, nature and location of such assets and the budget available for both capital and operational expenditure on these services.

ii) locally driven initiatives, where local boards undertake activities for the benefit of their local communities, and control decisions on services, service levels and costs. (This may include asset related service level improvements and capital investment within limits approved by the Governing Body).

g) agree that the costs of operating and maintaining asset based services (as defined in f) (i)); as well as the consequential operating expenditure (interest and depreciation) associated with governing body investment in local assets; will be funded from general rates, in accordance with asset management plans and the regional budgeting process

h) agree the next stage of the review will consider options for funding locally driven initiatives (as defined in f) (ii)) by either general rates allocated on a formula basis, local rates collected in each board area, or a mix of general rates allocation and local rates

i) agree that options for determining the relationship between the Governing Body and local boards for the use of local rates are:

i) local boards advocate to the Governing Body for local rates and the Governing Body makes the final decision.

ii) local boards make decisions on the use of local rates, within constraints of regional policy determined by the Governing Body, and the Governing Body implements these decisions.

j) agree that the council’s rates remission and postponement legacy schemes that support community and sports related services, and natural, historic or cultural heritage be reviewed alongside the Local Boards Funding Policy to:

i) ensure consistency between local grants schemes and rates relief schemes

ii) develop a regionally consistent rates remission and postponement policy. Consultation on amendments to the policy should be undertaken alongside consultation on the draft Long-term Plan 2015-2025.

k) agree to direct staff to consider service level equity issues for local asset based services as part of the development of the Long-term Plan and Asset Management Plans and engage with local boards on this and report back on a timetable.

10. A full discussion of the options for, and issues associated with, the development of the Local Boards Funding Policy can be found in the attached report “Local boards funding policy review”.

11. The following discussion summarises the issues related to the setting of parameters for engagement with local boards on the options for the funding policy.

Time Frame

12. The adoption of a Local Boards Funding Policy is likely to have an impact on the allocation of council budgets. It is recommended that the Local Boards Funding Policy be adopted by mid-August 2014. This would enable the council to prepare local budgets that reflect the new funding policy for public consultation in the draft Long-term Plan 2015-2025. Adopting the Local Boards Funding Policy in August will also provide local boards with clarity as to who has decision making authority on the level and source of funding for local activities during the finalisation of budgets for local board plans in September.

13. To meet this timeline, public consultation on the Local Boards Funding Policy would need to be carried out through a special consultative procedure undertaken in June 2014.

Scope: Policy structure

14. The Local Boards Funding Policy sets out how local activities are to be funded (the split between rates and fees and charges) and who should pay where rates are used. Decisions on service levels and how much funding is available are made when budgets are prepared each year. The review of the Local Boards Funding Policy does not set, or seek to change, decision making responsibility for:

· the split between regional and local activities

· the setting of service levels for local activities.

15. Expenditure on local activities can be either capital or operational in nature. Capital expenditure is debt funded, but the ongoing costs associated with this expenditure, such as interest charges, depreciation, staff, consumables and maintenance are operational costs. Local boards allocated capital funding to deliver governing body investment decisions on local assets, are also allocated the consequential operational expenditure associated with that capital expenditure. Operational expenditure is funded from local fees and charges and rates. The rate requirement is therefore gross operational expenditure, less fees, charges and other revenue.

16. The ability to undertake capital investment depends on the ability to service the subsequent operational costs. While the Local Boards Funding Policy focuses on funding of operating expenditure, it captures capital decisions by including the subsequent operating costs.

17. Good public policy links decisions on tax with decisions on expenditure (i.e. service levels). Where possible this review has identified where better alignment can be made between funding decisions and decisions on levels of service. This has resulted in a policy framework that differentiates between:

· asset based services such as those associated with parks, swimming pools and community facilities where the Governing Body makes decisions on the location, nature and number of local assets and matches this with funding

· locally driven initiatives, where local boards undertake activities for the benefit of their local communities, and control decisions on who gets funding and the services and service levels to be delivered.

18. The table following describes the Governing Body’s and local boards’ decision making roles in relation to asset based services and locally driven initiatives.

	Governing body role	Local board role
Asset based services	· Allocates capital funding to local boards in accordance with its decisions on new local assets and major upgrades. · Decides approximate location, budget and scope for these projects · Governing body decisions on investment will be guided by regional strategies, which should identify funding priorities based on the need to address service gaps and growth	· Engaged and provide feedback on governing body decisions · Engaged and provide feedback on regional strategies · Decide precise location of new assets · Agrees design of project within scope set by the Governing Body. Can propose to fund increases to project scope as locally driven initiatives · Oversees delivery of project
Asset based services	· Allocates operational expenditure to enable local boards to operate and maintain their local assets in accordance with the asset management plans · Approves asset management plans	· Engaged in development of asset management plans · Operate and maintain local assets in accordance with the asset management plans · Can fund asset related service level improvements as locally driven initiatives
Locally driven initiatives	Approve or reject locally driven projects that exceed governing body set limits on local board capital investment	· Can undertake capital projects within limits set by the Governing Body · May undertake capital projects over limits set by the Governing Body with approval from the Governing Body
Locally driven initiatives		· Decide services and service levels to be provided for community and allocates operating budgets accordingly · Oversee delivery of local services · Can fund asset related service level improvements

19. The review proposes that the existing model for funding asset based services be retained as there is no merit in alternative options for funding these. Under this model asset based services will continue to be funded from general rates. As the distribution of asset based service costs between boards does not align with factors such as local board population size, then funding on this basis will not ensure that local boards can maintain their asset base. There is also:

· a poor relationship between the user catchment for many asset based services and local board populations

· using local rates to fund asset based services would be inequitable, and for some boards unsustainable.

20. Under this funding model, the Governing Body determines how much funding is available to fund agreed service level standards. The Governing Body also has the ability to set regional policies on fees and user charges such as free entry to swimming pools for under 17’s. Local boards undertake an advocacy role in changing agreed service levels and will be engaged in the development of the regional strategies on asset based services that will guide governing body decisions on future investment in assets.

21. Local boards also have decision making on how asset based services are delivered and operated in their board area. They may make decisions on the level of fees and charges within any regional policy set by the Governing Body. In doing so they receive the benefit of increased revenue or fund any shortfall from other funding sources.

22. During the course of the review, equity issues for asset based service levels have been raised which cannot be resolved via the Local Boards Funding Policy. Resolving these issues will have implications that can only be addressed as part of the wider planning and budgeting process and will be considered when developing the long-term plan. As part of this process, local boards will be engaged in the development of asset management plans (AMPs) that will determine service levels and capital programmes for asset based services. Engagement with local boards on the AMPs is currently planned to begin March 2014.

23. Under the current funding model, funding for locally driven initiatives reflects decisions on service levels made by former councils. The review has found that equity in funding for locally driven initiatives between local boards can be improved in one of three ways. These are by using:

· general rates allocated to local boards based on factors such as local board population size, possibly adjusted for factors such as deprivation and remoteness

· local rates collected within each board area

· a combination of general rates allocation and local rates.

24. Under a general rate allocation model the amount of locally driven initiative funding available to each local board is determined by the Governing Body. This is affected by decisions made by the Governing Body on the total level of locally driven initiatives funding available each year and the formula used to allocate this to each local board.

25. A general rate allocation model will see a redistribution of funding between local boards; some will receive more funding while others will receive less. A local board that receives less funding will then have the option to reduce expenditure or to seek an increase in revenue from fees and charges or from local rates.

26. Under a local rate model, funding for locally driven initiatives is provided entirely from a local rate. The level of funding required from the local rate is determined by the decisions on local fees, charges, services and service levels made by the local board. The local rate will show as a separate line item on the rates invoice.

27. A combined model will part fund locally driven initiatives via a general rate allocation with the remainder of the funding provided by a local rate.

28. The proposed Local Boards Funding Policy structure for funding operational expenditure is as follows:

Funding for asset based services

The cost of operating and maintaining asset based services is funded from general rates, and fees and charges revenue associated with individual assets. Funding is allocated to local boards in accordance with asset management plans and the regional budgeting process.

Funding for locally driven initiatives

Locally driven initiatives will be funded from local fees and charges associated with these activities, and from rates funding. There are three options for rates funding locally driven

initiatives:

· general rates allocated to local boards based on factors such as local board population size, possibly adjusted for factors such as deprivation and remoteness

· local rates collected within each board area

· a combination of general rates allocation and local rates.

29. The above structure for the funding policy was agreed by the Governing Body for engagement with local boards. The focus for engagement is on how to best fund the locally driven initiatives component of the policy.

Scope: how local rates are used

30. The use of local rates is an option under any funding model. The review of the local board funding policy provides the opportunity to have greater clarity in the roles that the Governing Body and local boards play in setting local rates. This is particularly relevant where funding decisions are aligned with decisions on levels of service. Legislation constrains this process in that only the Governing Body can set a rate. There are two options for determining the relationship between the Governing Body and local boards, these are:

· local boards advocate to the Governing Body for new local rates or changes to those set by the Governing Body, and the Governing Body makes the final decision. This is a similar process that is currently used for funding of local assets.

· local boards make decisions on the use of new local rates or changes to those set by the Governing Body, within constraints of regional policy determined by the Governing Body, and the Governing Body implements these decisions. This is a similar process that is currently used for local fees and charges.

31. The Local Boards Funding Policy is the appropriate place to set this relationship. The Governing Body agreed the above as relationship options for engagement with local boards.

Policy implementation: Capital expenditure

32. Local boards currently have budgets for capital expenditure from three sources:

· governing body investment decisions on local assets

· legacy capital projects inherited from the previous councils

· an allocation of capital funding for boards to use at their discretion, beginning in the 2012/2013 year.

33. Governing body provided capital funds for investment in local assets are not discretionary for local boards. While each board has decision making on how specified projects are implemented within their area, projects must be delivered within the scope agreed by the Governing Body.

34. The review recommends that the Local Boards Funding Policy only allocates operational expenditure to local boards, and does not allocate capital expenditure. Local boards can still undertake capital projects within the limits set by the Governing Body, so long as they can fund the consequential operating expenditure (including depreciation and interest costs) from their operational budgets. Local boards would need to fund this expenditure either by reprioritising their existing budgets (through efficiencies or reduced service levels), or increasing their revenue from rates or fees and charges. This would see local boards funding capital investment in the same way as the Governing Body does.

35. The review recommends that the few remaining significant legacy capital projects be treated the same as governing body investment decisions. These funds will be considered nondiscretionary, on the basis that it was a governing body decision that these projects continue rather than be reviewed against regional priorities for investment. Consequential operating expenditure associated with these projects will be part of asset based service funding and will not impact on local board budgets.

36. The consequential operating expenditure associated with any remaining discretionary capital funds will be treated as funding for locally driven initiatives. This funding will therefore be included in any reallocation of funding for locally driven initiatives.

Scope: Locally driven initiatives - general rate allocation formula options

37. If the Governing Body determines the total level of funding to be raised through a general rate for locally driven initiatives, some form of allocation method or formula is required. The Strategy and Finance committee agreed at its May 2013 meeting that the following attributes of local boards be considered in the development of the funding policy:

· population

· deprivation

· factors related to rural/geographic isolation

· rates collected.

38. It is recommended that the general rate funding allocation formula be restricted to factors related to population, deprivation and rural/geographic isolation only.

39. Rates collected should not be used as a factor for allocating general rates funding. This is because general rates have an element of both tax and payment for services received. The distribution of rates across groups of ratepayers was a consideration in the development of the rating policy.

40. If funding local boards based on the level of rates collected in the local board area is desired, then local rates should be used. This would make explicit the link between and rates paid and services received, with each board area paying a local rate for the services undertaken by their board. It also directly links a local board’s decision making on service levels with decisions on the rate revenue required to be collected from their local community.

Scope: Transition

41. Under the proposed policy, locally driven initiatives can be primarily funded either through local rates, or by general rates allocated to boards based on factors such as population, or a mixture of the two.

42. A general rate allocation formula will result in significant change in the level of funding for some local boards. As such, the adoption of some form of transition process may be appropriate. The review process will present options for transitioning change as a result of the funding policy over three years, to align with the Long-term plan planning cycle.

43. The level of change associated with the adoption of local rates for funding locally driven initiatives is smaller. Local boards would also have the opportunity to adjust their local rates revenue requirement by adjusting their service levels. A transition process is unlikely to be of value in this case. However if a mixed funding model is adopted, using both general rates allocation and local rates, there may still be a need to transition the allocated portion of funding. Options for managing this change will be presented.

44. It is noted that Great Barrier Island local board will experience high levels of change in funding regardless of what funding model is adopted. Options for treating this board as a special case for funding will be presented by the review.

Policy implementation: Local fees and charges

45. Local boards have the right to set local fees and charges under the allocation of decision making. Under the proposed Local Boards Funding Policy framework, it is recommended that local boards will retain the benefit/bear the cost of any change in fees as a result of their decision making.

46. Local board decisions on fees and charges related to asset based services needs to be balanced against revenue expectations for those services. These revenue expectations inform the requirement for general rate funding for asset based services in the asset management plans. In this case, it is proposed that operating groups will advise boards on the expected revenue targets for their asset based services starting from the status quo. Local boards can adjust fees above or below the recommended target, and will then retain the benefit/bear the cost of any resulting change in expected revenue for the service.

47. In setting fees and charges, there is the risk that actual revenue will vary from expected revenue. If the revenue relates to an asset based service, the operating group will absorb any revenue variance, with any shortfall made up from the groups operating budget. The variance will then be used to inform revenue targets for the service in the following year.

48. The local board will bear the cost or retain the benefit of any variance in revenue related to locally driven initiatives.

Policy implementation: Rates remission and grants schemes

49. The council inherited from the former councils a number of mechanisms that support community and sports related services, and natural, historic or cultural heritage. These included the direct provision of services by the council, grants to third party organisations, and rates remission and postponement schemes.

50. In general the provision of these services and grant schemes have been classed as local activities, and continue to operate in those local board areas from which they originated. The rates relief schemes are part of the council’s rates remission and postponement policy, which is managed regionally, but continue to be available to qualifying properties within those former council areas that originally offered the schemes.

51. As a result of the council retaining these legacy services and schemes, local board areas are providing similar community services using varying delivery models:

· some boards have services, such as community facilities, provided directly by the council

· other boards have grants schemes directly controlled by the boards that are used to fund third parties to provide similar types of services, including the provision of community facilities; as well as to provide support to local community groups and other organisations

· in some board areas, community groups and other organisations have access to rates remission or postponement schemes that are not controlled by the local board in terms of eligibility criteria and approval.

52. The Local Boards Funding Policy has already considered the issue of the use locally controlled grants, compared to where services are being delivered by the council. It is proposed that under the policy, grants that are used to fund local facilities that in other areas are provided by the council, should be funded on the same basis as other asset based services. Grants that are used to fund more discretionary activities, such as one off grants to community groups, will be treated as locally driven initiatives, and be included in the pool of funding for these activities.

53. The Review of Community Assistance has now identified all sources of community funding assistance provided by the council, by local board area. This enables a review of the council’s rates remission and postponement schemes to be undertaken, to develop an approach to supporting community and other organisations that is consistent across the region.

54. The council’s rates remission and postponement policy should be regionally consistent. However most of the rates relief granted under the remission and postponement schemes for community and sports related services, and natural, historic or cultural heritage correspond to grants schemes relate to activities that have been treated as a local board responsibility when support is provided as grants. To ensure consistency, options for moving from rates based schemes to locally controlled grants schemes will be considered, though the financial impact of such a move will need to be assessed.

55. The Governing Body has agreed that the Auckland Council rates remission and postponement policy be reviewed alongside the development of the Local Boards Funding Policy to ensure consistency between local grants schemes and rates relief schemes, and to develop a regionally consistent rates remission and postponement policy.

56. Amendments to the rates remission and postponement policy will be publically consulted on alongside consultation on the Long-term Plan 2015-2025.

Engagement

57. Council staff will be undertaking engagement with local boards on the Local Boards Funding Policy through March and April 2014. The attached report “Local boards funding policy review” will form the basis for engagement on the policy options.

Consideration

Local Board Views

58. This report has been considered by and includes feedback from the Local Boards Funding Policy Political Working Party (LBFP PWP).

59. The purpose of the working party is to provide a joint forum of the Governing Body and local boards to provide guidance and direction with respect to the development of the local board funding policy. This includes development of comprehensive and robust options for the funding of local activities within the Local Boards Funding Policy.

60. This report seeks formal feedback from local boards to be considered by the LBFP PWP in early May and will form part if the consideration by the Governing Body when it adopts the draft policy for consultation in late May.

Maori Impact Statement

61. There are two ways in which Maori could be impacted by the options discussed in this report, these are:

· under a general rate allocation model the level of locally driven initiative funding available to a local board may change

· under a local rate funding model the level of rates paid may change.

62. Maori population is not the same across all local boards. How this will impact on Maori will depend on changes to funding available to local boards and how local boards respond to these changes. This may result in more or less funding being available or lower or higher rates being charged. The impacts by local board will be explored more at the next stage when the draft policy is being considered for consultation.

63. Within a general rate allocation model the choice of attributes may also have an impact on Maori. Some attributes that can be used in the funding formula, for example deprivation, have a greater alignment with the population distribution of Maori. A funding formula that had greater emphasis on these attributes will provide more funding to local boards with higher Maori populations. How this would impact on Maori would depend on the local boards choose to use this funding.

64. The review of the Local Boards Funding Policy will not change the Maori freehold land rates remission and postponement policy.

Implementation Issues

65. There are no implementation issues associated with recommendations in this report.

Attachments

No.	Title	Page
a	Local Boards Funding Policy Review (Under Separate Cover)
b View	Guidelines for local board feedback	167

Signatories

Authors

Aaron Matich - Principal Advisor Modelling

Andrew Duncan - Manager Financial Policy

Authorisers

Chris Carroll - Manager Planning and Policy

Glenn Boyd - Relationship Manager Henderson-Massey, Waitakere Ranges, Whau

Whau Local Board

16 April 2014

Financial Planning for Extreme Weather Events

File No.: CP2014/07212

Purpose

1. This report provides an overview of the current financial management practice for dealing with extreme weather events in local parks assets across the region. There are a number of issues and inconsistencies with the current practice and therefore it is recommended that a new and consistent approach be adopted.

Executive Summary

2. Auckland is prone to a range of extreme weather events including tornadoes, high tides, high winds, high rainfall and drought, all of which can contribute to sudden erosion, plant loss, tree fall, fixed asset damage and land slips. 12 local boards have some funding to deal with land slips and other effects from extreme weather but it is rarely sufficient when serious issues arise. Nine boards have no inbuilt financial capacity to cope with the impact of weather events.

3. Council has an obligation to plan for extreme weather events. There is a legal and moral obligation to ensure that some rates funding is set aside for this purpose given that weather damage, while unpredictable in timing and location, is none-the-less a constant in the Auckland region as a whole.

4. Three options are considered in this report. This first is to continue with the ad-hoc funding arrangement i.e. do nothing. The second is to pool local board funding to essentially develop a regional self-insurance fund (local unallocated budget). The third is to seek a regional fund, controlled by the governing body, which is applied for on a case by case basis. The second approach is recommended. The current arrangement will result in the need for local boards to cut existing budgets from time to time to react to weather events and overspend or approach the governing body regarding unforecast over expenditure. The second option, which involves funding moving to the area of greatest need, is likely to cover most weather events, without changing existing regional expenditure, and minimizes the time delays/bureaucracy involved.

5. In 2011, storms affected many areas and resulted in a number of severe slips on Waiheke Island. In 2012 the Upper Harbour Local Board was hit by a major cyclone event and dealt with the extensive damage via cuts in their current work and over expenditure. In 2013 all boards were affected by drought and a number of local boards have been affected by slips and erosion. The Hibiscus and Bays Local Board and the Waitemata Local Board, in particular, are finding their current liabilities well beyond their individual ability to fund the remedies. In general terms, extreme weather events affect coastal areas and older suburbs more than rural, flat or inland areas however all areas are prone to wind, drought and flooding.

6. The financial information relating to events that have occurred in the last three years is poor due to the fact that funds were taken from a variety of Auckland Council sources and expenses were not labelled consistently. As such the average financial risk for the region over the last three years is not specifically known. While it is possible for damage to be catastrophic and incalculable (if there is a regional disaster) it is only the common weather occurrence that is contemplated in this report. Over the last three years costs have been in the realm of six figures every year and the burden has traversed local boards.

7. Current budgets are operational. Damage from extreme weather events often results in the need for the development of new retaining or structures to protect existing assets from ongoing slips or similar. There is currently no capital funding sitting with local boards specifically tagged for storm damage remediation. It is recommended that a portion of the existing funding be allocated to capital budgets to provide for this eventuality.

Recommendations

That the Whau Local Board:

a) Supports the development of a local unallocated fund to insure against unforeseen impact of extreme weather events to parks and that such funding can be on an as required basis.

b) Supports a portion of the pooled operating budgets being allocated to local unallocated capital funding.

c) Notes that expenditure against the local unallocated operational and capital storm damage budgets will be reported to all local boards annually.

Discussion

8. Auckland is prone to a range of extreme weather events including tornadoes, high tides, high winds, high rainfall and drought all of which can contribute to sudden erosion, plant loss, tree fall, fixed asset damage and land slips.

9. The scale or impact of extreme weather events is particularly felt in urban parks where space is at a premium and landscapes are heavily developed. Although weather events still have an impact on regional parks the scale of the regional park landscapes and the management of those landscapes (i.e. a lot more fully restored streams and coastal dunes) means the impact of extreme weather events can usually be tolerated without affecting the day to day use of the park. In general terms, extreme weather events also affect coastal areas and older suburbs more than flat or inland areas however all areas are prone to wind, drought and flooding.

10. The financial impact of managing damage associated with extreme weather events in the urban park environment has historically been dealt with in three ways:

· Self-insurance – a fund is kept to call on for unforeseen damage

· Reforecasting – no funds are set aside for unforeseen damage and as a result current projects and operational expenses are put on hold while funding is diverted to managing the impact of extreme weather events.

· Overspend – where neither of the two options above are possible then some costs have been worn as an overspend

11. Auckland City Council held specific “storm damage” budgets for parks and other Council’s had a level of self-insurance against unforeseen damage. Others had nothing.

12. Upon amalgamation the funding pool held by Auckland City Council was divided amongst the local boards in those areas. Local boards in the old Manukau City had some funding allocated to cater for this possibility in their local budgets. This resulted in very small buckets of money being allocated to 12 local boards.

13. This local board budget allocation has largely defeated the purpose of the self-insurance fund as extreme weather events do not happen regularly in any given area. They can affect a localised area or a large scale area that has no correlation to local board boundaries. This means that individual local boards can go many years without an extreme weather event while its neighbor or another local board may have several events in short succession. This random occurrence is normal and the current budget allocation does not befit this natural phenomenon.

14. The current operational “storm damage” budgets held across the region are:

	YTD Actual (Feb)	Budget
Albert-Eden		$77,558
Maungakiekie-Tamaki		$96,947
Orakei	$13,101	$109,874
Puketapapa	$2,197	$64,632
Waiheke		$19,389
Waitemata	$7,508	$102,894
Franklin		$20,371
Howick		$30,451
Mangere-Otahuhu		$15,515
Manurewa		$16,926
Otara-Papatoetoe		$16,715
Papakura		$11,158
Total	$22,806	$582,431

Note: there are a number of commitments or costs expected in Waitemata and Orakei that are not yet shown in the these budgets

Consideration

15. Council has an obligation to plan for extreme weather events. Under property law there is term known as lateral support which is about the right of a landowner to have their land physically supported in its natural state by both adjoining land and underground structures. There are around 4000 local and sports parks and each of these parks have neighbours. Any excavation or alteration council makes to park land may, at a later time, damage and affect a neighbour and leave council liable. Our neighbours have a right to enjoy their land in its natural condition. This includes the right to have their land held in place from the sides by the neighbouring land unless both are subject to unforeseen natural events.

16. In addition to this legal obligation to neighbours, some extreme weather events come at such a substantial cost that the budget available to an individual board is either unable to wear the cost of the recovery or the cost of recovery affects a range of other activities within a local board area. This budget shortfall creates a liability and its own set of risks for council and the community.

Options

17. The following options have been considered for ongoing/future management of storm damage:

	Option	Pro’s	Con’s
1	Do nothing: Some boards have limited funds available, others have nothing	· No change to boards budgets. A small contingency fund remains available for those boards with funding.	· No boards have sufficient funding to deal with medium size weather event – this exposes council to a range of risks
2	Create local unallocated fund (self-insurance): This would be a ring fenced fund for all boards to access allocated to the local and sports parks activity. It would be established from existing storm damage budgets held by some local boards.	· Funding is accessible across the region i.e. funds go where the storm goes · The size of the fund, pooled across the region, is more likely to accommodate regional extreme weather events than current arbitrary and small funding base available to those boards that have funding · Can be established immediately (providing all the boards agree) thereby helping with current liabilities	· Risk of the fund being inappropriately used for day to day weather events. This is a current risk and can be more readily mitigated as a local unallocated fund. It is recommended that there would be a single Tier 4 manager with a regional view determining a consistency of approach. · Some boards contribute to this solution while others benefit without contribution – may be seen as inequitable
3	Ask governing body to cater for most impacts of extreme weather events on a case by case basis.	· No change needed and governing body would pick up costs of damage (if agreed/funding found). Local boards that have existing funding would potentially need to show expenditure of current budgets before being eligible.	· The time delay and bureaucracy involved in making this happen means that most applications will be retrospective and expose the Council to financial risk · No funding is currently available at a governing body level. May take time to advocate for/secure

Local Board Views

18. This report is being circulated to all local boards to canvas their views on this issue.

Maori Impact Statement

19. In many cases extreme weather events can damage archeological sites or sites of significance to Tangata Whenua. This can trigger the need for cultural impact assessments and more careful/expensive restoration works to protect the values of the site. Without a fund to support rehabilitation or restoration work recently discovered or damaged sites of significance cannot be attended to as there are no funds. A regional self-insurance fund would help to mitigate risk for council.

General

20. As previously mentioned a variety of extreme weather events have affected parks over the years. For instance in 2011 storm damage caused extensive slips across Waiheke. Repair work is ongoing and existing storm damage funding has been insufficient to cope. In 2012 a tornado hit Hobsonville causing widespread damage to trees and houses. The arboricultural and general cleanup was unforeseen and no budget for this kind of work was available to the Upper Harbour Local Board. In this case the cost of repair was funded by savings in the local board budget combined with a budget overspend.

21. During September last year, a major storm event hit the east coast beaches, particularly in the Hibiscus and Bays Local Board area but also affecting Rodney, Orakei and Howick Local Boards. A storm surge of 0.8 metres on top of high tide caused substantial erosion. Orewa Beach was hit the hardest with significant sand loss and coastal structure damage.

22. Weather events are part of the life of Auckland. The current inconsistent, and in many cases non-existent, planning for extreme weather events is a risk and exposes council to a high likelihood of budget blowout in any given year and local board area.

23. The unpredictable nature of extreme weather events means that we cannot anticipate what portion of funding is needed for capital and operational funding. However, based on the last three years weather events, we know that there is a need for both operational and capital funding. It is therefore recommended that a portion of the current operational funds be allocated to capital funding to offset these costs.

Implementation Issues

24. If a regional self-insurance fund, initially created from existing local board funds, is universally supported by formal resolution from all local boards then this fund can be created in the current 2013/14 financial year.

25. The expenditure against the local unallocated operational and capital storm damage budgets will be reported to all local boards annually.

26. There are currently several areas affected by storm damage that have projected funding shortfalls that could benefit from immediate implementation of the regional solution. The beneficiaries from this fund will change from year to year. Some recent historical events and current events and associated funding requirements are detailed in Attachment A.

Attachments

No.	Title	Page
a View	Historical and current events and associated funding requirements	219

Signatories

Authors

Jane Aickin - Manager Local and Sports Parks Central

Martin Van Jaarsveld - Manager Local and Sports Parks North

Malcolm Page - Manager Local and Sports Parks, South

Grant Jennings - Manager Local and Sports Parks West

Authorisers

Ian Maxwell - Manager Parks, Sports & Recreation

Karen Lyons - Manager Local Board Services

Glenn Boyd - Relationship Manager Henderson-Massey, Waitakere Ranges, Whau

Chairperson	Catherine Farmer
Deputy Chairperson	Susan Zhu
Members	Derek Battersby, QSM, JP
	Ami Chand
	Duncan Macdonald, JP
	Ruby Manukia-Schaumkel
	Simon Matafai

Naming Convention	Fee Comparisons
Standard	Full rate, no discounts
Standard Off Peak	Full rate, less a discount for time of day or week
Regular	Discount off standard rate for 10 or more bookings per year
Regular Off Peak	Discount off standard rate for 10 or more bookings per year, and a further discount for time of day / week
Local Board Priority Activities	Maximum discount off standard rate
Local Board Priority Off Peak	Maximum discount off standard rate, and a further discount for time of day / week

Author	Mark Allen - Senior Local Board Advisor
Authoriser	Glenn Boyd - Relationship Manager Henderson-Massey, Waitakere Ranges, Whau