Agenda of Finance and Performance Committee

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

Date:

Time:

Meeting Room:

Venue:

Wednesday, 24 September 2014

2:00pm

Council Chamber
Ground Floor
Auckland Town Hall
301-305 Queen Street
Auckland

Finance and Performance Committee

OPEN AGENDA

MEMBERSHIP

Chairperson	Cr Penny Webster
Deputy Chairperson	Cr Ross Clow
Members	Cr Anae Arthur Anae	Cr Calum Penrose
	Cr Cameron Brewer	Cr Dick Quax
	Mayor Len Brown, JP	Cr Sharon Stewart, QSM
	Cr Dr Cathy Casey	Member David Taipari
	Cr Bill Cashmore	Member John Tamihere
	Cr Linda Cooper, JP	Cr Sir John Walker, KNZM, CBE
	Cr Chris Darby	Cr Wayne Walker
	Cr Alf Filipaina	Cr John Watson
	Cr Hon Christine Fletcher, QSO	Cr George Wood, CNZM
	Cr Penny Hulse
	Cr Denise Krum
	Cr Mike Lee

(Quorum 11 members)

Crispian Franklin

Democracy Advisor

18 September 2014

Contact Telephone: (09) 373 6205

Email: crispian.franklin@aucklandcouncil.govt.nz

Website: www.aucklandcouncil.govt.nz

Finance and Performance Committee

24 September 2014

ITEM TABLE OF CONTENTS PAGE

1 Apologies 7

2 Declaration of Interest 7

3 Confirmation of Minutes 7

4 Petitions 7

5 Public Input 7

5.1 Rating system and methods of revenue collection - Mr M Marinovich, Grey Power Organisation 7

6 Local Board Input 7

7 Extraordinary Business 8

8 Notices of Motion 8

9 Disposal Recommendation Report 9

10 Approval of and recommendation for adoption of the 2013/2014 annual report 21

11 Monitoring and reporting framework and projects contributing to Māori transformational shift activities in 2014/15 23

12 Update on the six Māori priority project areas 35

13 Te Tiriti o Waitangi Audit Response work programme 2014/2015 45

14 Delegation of power to adjust solid waste fees to the Chief Executive 51

15 Monthly Budget Update

This report was not available at the time of print and will be provided under a separate cover.

16 Consideration of Extraordinary Items

PUBLIC EXCLUDED

17 Procedural Motion to Exclude the Public 55

C1 Waitemata City Sports Club Inc 55

C2 Transformational Programmes budget update

Officers will be providing a verbal update for this item.

1 Apologies

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

2 Declaration of Interest

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

3 Confirmation of Minutes

That the Finance and Performance Committee:

a) confirm the ordinary minutes of its meeting, held on Thursday, 21 August 2014, as a true and correct record.

4 Petitions

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

5 Public Input

Standing Order 3.21 provides for Public Input. Applications to speak must be made to the Committee Secretary, in writing, no later than two (2) working days prior to the meeting and must include the subject matter. The meeting Chairperson has the discretion to decline any application that does not meet the requirements of Standing Orders. A maximum of thirty (30) minutes is allocated to the period for public input with five (5) minutes speaking time for each speaker.

5.1 Rating system and methods of revenue collection - Mr M Marinovich, Grey Power Organisation

Purpose

Mr M Marinovich wishes to speak to the Committee regarding the Council’ rating system and methods of revenue collection and financial decision making across the region.

Recommendation/s

That the Finance and Performance Committee:

a) thank Mr M Marinovich, Grey Power Organisation for his presentation on Council’s rating system and methods of revenue collection and financial decision making across the region.

6 Local Board Input

Standing Order 3.22 provides for Local Board Input. The Chairperson (or nominee of that Chairperson) is entitled to speak for up to five (5) minutes during this time. The Chairperson of the Local Board (or nominee of that Chairperson) shall wherever practical, give two (2) days notice of their wish to speak. The meeting Chairperson has the discretion to decline any application that does not meet the requirements of Standing Orders.

This right is in addition to the right under Standing Order 3.9.14 to speak to matters on the agenda.

At the close of the agenda no requests for local board input had been received.

7 Extraordinary Business

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

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

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

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

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

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

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

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

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

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

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

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

8 Notices of Motion

At the close of the agenda no requests for notices of motion had been received.

Finance and Performance Committee

24 September 2014

Disposal Recommendation Report

File No.: CP2014/20465

Purpose

1. This report seeks approval to sell two non-service council owned properties that Auckland Council Property Limited (“ACPL”) consider suitable for sale.

Executive summary

2. ACPL is required to identify properties from within council’s portfolio that may be suitable for potential sale to a combined value of $30 million by 30 June 2015. ACPL and Auckland Council Property Department (“ACPD”) work collaboratively on a comprehensive review process to identify such properties.

3. Capital receipts from the sale of the surplus properties will contribute to all Auckland Plan outcomes by providing the council with an efficient use of capital and prioritisation of funds to achieve its activities and projects.

4. The two properties proposed for sale in this report have a cumulative rating value of $13 million and relate to the $30 million target. These properties have been through the agreed consultative process including organisation wide internal officer consultation, local board and Iwi engagement. The feedback has been supportive of the proposed disposal of the sites.

5. A detailed overview of the rationalisation process undertaken for these properties is outlined in the Comments, Local Board Views and Implications, and Maori Impact Statement sections of this report. Site specific detail, including information and feedback gathered through the rationalisation process, is contained herein under the respective property attachment.

Recommendation/s

That the Finance and Performance Committee:

a) approve the disposal of the land below, subject to the satisfactory conclusion of any required statutory processes:

i. 20 Barrowcliffe Place, Manukau comprised of an estate in fee simple, containing 50,000m² more or less being part of Section 13 SO 435724 contained in certificate of title NA 44C/3;

ii. 31-33 Manukau Station Road, Manukau comprised of an estate in fee simple, containing 9767.27m² more or less being part of Section 1 Survey Office Plan 435724 contained in certificate of title CFR 582667;

b) approve the final terms and conditions under the appropriate delegations.

Comments

6. ACPL and ACPD work collaboratively on a comprehensive review process to identify properties in the council portfolio that may be suitable to sell. Once identified as a potential sale candidate ACPL takes the property through a multi stage engagement process.

7. The first phase of the process involves engagement with all council departments and relevant CCOs. The engagement establishes whether a property is needed for a future funded project or whether it must be retained for some clear strategic purpose. This is determined by an Expression of Interest (“EOI”) process whereby officers can request that all or part of a property is retained. Alternatively officers may request that the property be encumbered or covenanted as part of the disposal process. If the EOI sets out a robust financial analysis and evidence based rationale to retain the properties, then the EOI is endorsed.

8. If however the reasoning is more subjective a thorough business case is required. An inter-disciplinary council and ACPL steering group comprised of senior managers, called the Property Review Steering Group (“PRSG”) meets on a monthly basis to assess the business cases. The PRSG provides an opportunity for properties to be considered in a cohesive and integrated manner by relevant council departments and CCOs.

9. The Heritage Unit is invited prior to the EOI process to flag any sites of particular archaeological merit that need to be assessed further. ACPL also engages with the Closed Landfills and Contaminated Land Response team prior to the EOI process commencing to ensure any possible contamination issues that may be associated with a property are identified.

10. The EOI process provides the Maori and Strategy Relations team the opportunity to flag any issue that is of particular relevance to Maori in connection with the potential disposal of a site.

11. Once a property has been cleared of any service requirements, ACPL then consults with Local Boards, Ward Councillors, Mana Whenua and the Independent Maori Statutory Board.

12. All sale recommendations must be approved by the ACPL Board before it makes the final recommendation to the Strategy and Finance Committee.

Consideration

Local board views and implications

13. Local Boards are informed of the commencement of the rationalisation process for specific properties. Following the close of the EOI period, relevant Local Boards are engaged with. ACPL attend a workshop with the relevant Local Board and provide information about properties being rationalised in their local board area. Local Boards may then request that ACPL prepare a report for their business meeting so that their views can be formalised.

14. If a Local Board wishes to retain a site, its’ views are considered by ACPL and if necessary referred to relevant council departments for consideration. The Local Board is asked to prepare a business case which sets out the clear service need that will be met by retaining the site, along with how the use will be funded.

15. ACPL and relevant council departments or CCOs work with Local Boards in preparing the business case. The business case is then considered by the PRSG. If the PRSG accepts the business case and funding is identified, the property is transferred back to the service portfolio. If the PRSG does not accept the business case, the business case is included in the report to the Finance & Performance Committee for a political decision.

16. The views of the relevant Local Board are contained in the respective property attachments.

Māori impact statement

17. The importance of effective communication and engagement with Maori on the subject of land is understood. ACPL has accordingly developed a robust form of engagement with Mana Whenua groups across the region. Each relevant mana whenua group is contacted independently by email based on a contact list which is regularly updated. Each group is provided general property details, including a property map, and requested to give feedback within 15 working days. Contacts are sent reminder notices a week out from the due date, and alerted of the passing of the due date in the week following if no feedback has been submitted. Confirmation of any interest expressed is sent in writing and recorded for inclusion in the disposal recommendation report. A feedback spreadsheet is provided to facilitate responses. Any requests for extensions of a due date are handled on a case by case basis.

18. ACPL’s engagement directs mana whenua to respond with any issues of particular cultural significance the group would like to formally express in relation to the subject properties. We also request express notes regarding any preferred outcomes that the group would like us to consider as part of any disposal process.

19. From discussions with our Maori and Strategy Relations team we are developing an understanding of what could amount to a ‘matter of significant cultural relevance’ to Iwi. We are also developing a range of reasonable outcomes that could be employed when such a matter of cultural significance is raised in relation to a potential disposal property. Possible outcomes could include commemoration or physical acknowledgment in the form of plaques or other mutually agreed means of recognition. In the event of any issues of particular cultural significance being raised, ACPL will work with the relevant council departments to assess the merits of any such requests and keeps the interested parties informed along the way.

20. Mana whenua groups are also invited to express potential commercial interest in any sites and are put in contact with ACPL’s Development team for preliminary discussions if appropriate to the property. This facilitates the groups’ early assessment of the merits of a development opportunity to their Iwi. In the event a property is approved for sale all groups are alerted of the decision, and all groups are alerted once a property comes on the market.

21. Lastly a report is presented to the Independent Maori Statutory Board ahead of presenting any recommendations to sell to the Finance and Performance Committee detailing how Maori have been engaged throughout the process.

Implementation

22. As part of the overall review process each property is also legally assessed to see if there are any impediments to sell or if there is a prescribed legal way in which it must be sold. The last stage of the process is triggered once a resolution to sell is obtained. This involves a robust ‘add value’ assessment as part of the development of the final sales strategy. There is specific attention applied to the possible suitability of the site for housing purposes.

Attachments

No.	Title	Page
a View	20 Barrowcliffe Place, Manukau property information	13
b View	31-33 Manukau Station Road, Manukau property information	17

Signatories

Authors	Letitia McColl, Senior Engagement Advisor, Portfolio Review, Auckland Council Property Limited
Authorisers	David Rankin, Chief Executive, Auckland Council Property Limited
Authorisers	Ian Wheeler, Manager Property, Auckland Council Property Department
Authorisers	Andrew McKenzie, Chief Financial Officer, Auckland Council

Finance and Performance Committee

24 September 2014

Consideration

Internal consultation

7. The rationalisation process was commenced in April 2014. No alternative uses for this site were identified during this process.

8. The Heritage Unit was invited through the EOI process to raise any particular archaeological issues. The Closed Landfills and Contaminated Land team are also asked to assess all properties prior to the EOI process commencing to ensure any possible contamination issues that may be associated with a property are identified. Neither party has flagged any relevant issues.

9. The EOI process provided the Maori Strategy Relations team the opportunity to flag any issue that is of particular relevance to Maori. No issues have been raised.

Local board views and implications

10. The MLB endorsed the proposed disposal of this site at its August business meeting, subject to the following:

a) the board will be fully informed on the outcomes of the Place Management Study;

b) an assessment of both road noise and traffic related air pollution will be carried out;

c) any negative effects, as defined by the World Health Organisation, of both road noise and traffic related air pollution will be mitigated through master planning and the design of the residences;

d) the design guidelines be upheld, including levels of intensification, impact of entry and egress, and the impacts on related infrastructure;

e) the reserve and development contributions be used to fund infrastructure development, ie: parks;

f) the development ensure optimum water quality / stormwater discharge into the Manukau Harbour.

11. ACPL will ensure the development meets the requirements of the District Plan or Proposed Auckland Unitary Plan in regards to possible negative effects, water quality and Stormwater discharge. The allocation of development contributions will be carried out by the relevant regulatory department of council.

Iwi feedback

12. Twelve iwi authorities were contacted regarding the potential sale of 20 Barrowcliffe Place, Manukau. The following feedback was received.

a) Ngati Whatua o Orakei

Ngati Whatua o Orakei has no commercial or site specific cultural interest in this property.

b) Te Kawerau

Te Kawerau has expressed potential commercial interest in any council owned properties that may become available for sale.

c) Ngai Tai ki Tamaki

Ngai Tai ki Tamaki has expressed the general cultural significance of this site to the iwi; along with potential commercial interest should it become available for sale. They further note that it sits across the motorway from the current Corrections site, which they are receiving in their treaty settlement negotiations with the Crown.

d) Te Akitai Waiohua

Te Akitai Waiohua has expressed potential commercial interest in any council owned properties that may become available for sale.

e) Ngati Te Ata Waiohua

Ngati Te Ata Waiohua has expressed the general cultural significance of this site to Ngati Te Ata; along with commercial interest should the property become available for sale. Their representative has additionally stated that due to the cost of land in Auckland it would be important for council to consider discounted rates for land sales to iwi to enable displaced iwi to live in their rohe.

f) Ngati Paoa

Ngati Paoa has expressed potential commercial interest in any council owned properties that may become available for sale.

g) Patukirikiri

Paturkirikiri confirms that other tribes have stronger interests than Patukirikiri in the subject property. They are comfortable with being omitted from feedback on this site in favour of those with stronger interests.

h) Waikato Tainui

Waikato Tainui does not have any site specific cultural significance considerations to raise about this property but has potential commercial interest in the site should it become available for sale.

Technical Considerations

13. This site is not subject to offer back requirements under section 40 of the Public Works Act 1981.

14. This property is not one of the Council’s strategic assets to which the significance policy would apply.

ACPL’s independent commercial advice

15. The results of the rationalisation process to date indicate that this property is not required for current or future service requirements. As such we recommend that this site be sold. Should a resolution to divest this property be obtained, ACPL will continue to progress the proposed residential development of this site, ensuring both highest and best use of the site is achieved. The proposed development of this site will be based on the needs of the community and will include affordable housing options.

Images of 20 Barrowcliffe Place, Manukau

Section outlined in green subject to rationalisation. The blue section is not subject to the rationalisation process

Consideration

Internal consultation

6. The rationalisation process was commenced in April 2014. No alternative uses for this site were identified during this stage.

7. The Heritage Unit was invited through the EOI process to raise any particular archaeological issues. The Closed Landfills and Contaminated Land team are also asked to assess all properties prior to the EOI process commencing to ensure any possible contamination issues that may be associated with a property are identified. Neither party has flagged any relevant issues.

8. The EOI process provided the Maori Strategy Relations team the opportunity to flag any issue that is of particular relevance to Maori. No issues have been raised.

Local board views and implications

9. The OPLB endorsed the proposed disposal of this site at its August business meeting.

Iwi feedback

10. Twelve iwi authorities were contacted regarding the potential sale of 31 – 33 Manukau Station Road, Manukau. The following feedback was received:

a) Ngati Whatua o Orakei

Ngati Whatua o Orakei has no commercial or site specific cultural interest in this property.

b) Te Kawerau

Te Kawerau has expressed potential commercial interest in any council owned properties that may become available for sale.

c) Ngai Tai ki Tamaki

Ngai Tai ki Tamaki has expressed the general cultural significance of this site to the iwi; along with potential commercial interest should the property become available for sale. ACPL has a meeting with Ngai Tai representatives on 31 August to discuss these interests in more detail.

d) Te Akitai Waiohua

Te Akitai Waiohua has expressed potential commercial interest in any council owned properties that may become available for sale.

e) Ngati Te Ata Waiohua

Ngati Te Ata Waiohua has potential commercial interest in any properties that council deems surplus to service requirements. Their representative has additionally stated that due to the cost of land in Auckland it would be important for council to consider discounted rates for land sales to iwi to enable displaced iwi to live in their rohe.

f) Ngati Paoa

Ngati Paoa has expressed potential commercial interest in any council owned properties that may become available for sale.

g) Patukirikiri

h) Waikato Tainui

Waikato Tainui does not have any site specific cultural significance considerations to raise about this property but has potential commercial interest in the site should it become available for sale.

Technical Considerations

11. This site is not subject to offer back requirements under section 40 of the Public Works Act 1981.

12. This property is not one of the Council’s strategic assets to which the significance policy would apply.

ACPL’s independent commercial advice

13. The results of the rationalisation process to date indicate that this property is not required for current or future service requirements. As such we recommend that this site be sold. Should a resolution to divest this property be obtained, ACPL will continue to progress the proposed residential and commercial development of this site in conjunction with Auckland Transport, and will select an appropriate development partner.

Images of 31-33 Manukau Road, Manukau

Sections highlighted in yellow subject to rationalisation

Finance and Performance Committee

24 September 2014

Approval of and recommendation for adoption of the 2013/2014 annual report

File No.: CP2014/12734

Purpose

1. Receipt of the Group 2013/2014 annual report and recommendation of adoption to the Governing Body.

Executive summary

2. The Governing Body, at the meeting to be held on 25 September 2014, will receive for adoption the annual report.

3. Preparing and publishing an annual report is a legislative requirement. The annual report covering year to 30 June 2014 has been prepared by Council officers and audited by Audit New Zealand. The report compares and comments on the performance of Council against the budgets and operating targets set in the annual plan.

4. The Audit and Risk Committee will review the report at its meeting on 16 September 2014 and will provide its recommendation to the Governing Body.

Recommendation/s

That the Finance and Performance Committee:

a) agree to recommend adoption of the 2013/2014 annual report to the Governing Body subject to:

i) confirmation by the Audit and Risk Committee that the audit process has been completed satisfactorily.

ii) editorial changes to the document be approved by the Chief Finance Officer and the Chair.

Comments

5. The Local Government Act 2002 requires Auckland Council to prepare and adopt an annual report each year. Auckland Council is also required under the New Zealand Stock Exchange listing rules to publish an annual report. The annual report and accounts for the year to 30 June 2014 have been prepared by council officers and audited by Audit New Zealand for the Auditor General.

6. The Audit and Risk Committee reviews the quality of the annual report, the processes used by management and compliance with financial reporting standards. They also review the audit process with the Office of the Auditor General and Audit New Zealand. The Audit and Risk Committee will carry out their review on 16 September 2014.

7. The terms of reference for the Accountability and Performance Committee includes “considering Council’s annual report and recommending to the Governing Body for adoption”. This report enables the committee to execute that responsibility.

8. The annual report is for the Council group. The group is the result of consolidating Auckland Council and all of its CCOs. For legislative compliance purposes the financial statements of Auckland Council entity are included. All budgets and performance targets are those set out in the 2013/2014 Annual Plan.

9. During the year the CCO Governance and Monitoring Committee monitored the performance of the group through the reporting of quarterly consolidated financial results and quarterly reporting by Auckland Council and the substantive CCOs. This annual report follows the same pattern and completes the reporting for the financial year to 30 June 2014. At their September meeting the CCO Governance and Monitoring Committee received reports for the substantive CCOs. The Finance and Performance Committee received a report on the performance of Council at the meeting held on 21 August 2014.

10. On 29 August 2013 Council released preliminary results to the New Zealand Stock Exchange as required by the listing rules. The release was approved by the chair and deputy chair of the Finance and Performance Committee under delegation. The preliminary announcement was provided to all Councillors at the time of release.

11. The annual report document (which is not available at the time of compiling the agenda and will be circulated prior to the meeting) is currently undergoing a final review by Audit New Zealand and may be subject to some editorial changes prior to final submission to the Governing Body and subsequent publication.

12. The format of the annual report package has been amended this year. This year’s report consists of an Overview and three volumes; Themes and Activities, Local Boards and Financial Statements. The Overview also serves as a stand-alone summary of the annual report for legislative requirements.

Consideration

Local board views and implications

13. The annual report includes a section featuring the achievements in each local board area. Local Boards were engaged to collect and review this information and each chair has prepared a statement which is included in the annual report.

Maori impact statement

14. The annual report covers all aspects of Council’s governance and public accountability. The report includes commentary on Council’s contribution to outcomes for Māori, the role of and contribution from the Independent Māori Statutory Board and Council’s Te Waka Angamua - Māori Strategy and Relations Department.

Implementation

15. There are no implementation issues.

Attachments

The draft copy of the 2013/2014 Annual Report is circulated separately and is available on the Auckland Council website.

Signatories

Authors

Robert Nelson - Financial Controller

Authorisers

Kevin Ramsay - Manager Finance, Auckland CFO

Andrew McKenzie - Chief Finance Officer

Finance and Performance Committee

24 September 2014

Monitoring and reporting framework and projects contributing to Māori transformational shift activities in 2014/15

File No.: CP2014/18953

Purpose

1. This report responds to resolution FIN/2014/34 (j) of the June 2014 the Finance and Performance Committee:

· note that staff will report back in July 2014 to this committee specifying those projects which will contribute to Māori transformational shift activities in 2014/15 and setting out the monitoring and reporting process for 2014/15.

2. In order to address identified problems with the previous monitoring and reporting framework, a new Māori responsiveness activity and expenditure monitoring and reporting framework has been developed and tested prior to reporting back to this committee. The delay in reporting back has resulted from this.

Executive summary

3. In June 2014 the Finance and Performance Committee made a number of resolutions in response to a report entitled “Independent Assessment of Expenditure incurred by Auckland Council to achieve Māori outcomes” commissioned by the Independent Māori Statutory Board (IMSB) and undertaken by KPMG. The resolutions are set out in Appendix A.

4. Although the KPMG report focussed on Māori outcomes (the language used in the 2012-2022 Long-term Plan (LTP) and 2014/2015 Annual Plan), council’s report to the June Finance and Performance Committee aligns its language with the Mayor’s directive that the 2015-2025 LTP will focus on delivering on the Auckland Plan transformational shifts. Consequently, the June 2014 report and resolutions, and this report, use the phrase ‘Māori transformational shift’ ‘rather than Māori outcomes.

5. A significant focus of the June 2014 Finance and Performance Committee resolutions was to ensure that council would take a strategic top down approach to prioritising activities to achieve progress towards the Auckland Plan Māori transformational shift of ‘significantly lift Māori social and economic well-being’.

6. A new monitoring and reporting framework has been developed, addressing identified weaknesses in the previous framework. The new framework is based on:

· Clear criteria and a ranking system (developed by Te Waka Angamua in consultation with the IMSB secretariat) for the identification of projects which significantly contribute to the Auckland Plan Māori transformational shift ‘significantly lift Māori social and economic well-being’;

· An improved financial and narrative based reporting system which will enable tracking of progress on specific Māori transformational shift activities as well as on general activities which significantly benefit or engage Māori; and

· Partnering and support from Te Waka Angamua and Finance staff with business owners to ensure implementation of the monitoring and reporting system.

7. Using the proposed criteria and ranking system for 2014/2015, 29 projects or activities totalling $5.8 million have been identified across the council group that significantly contribute to the transformational shift ‘significantly lift Māori social and economic well-being’ (These are listed in Appendix B).

8. The June 2014 Finance and Performance Committee also resolved:

· “…ensure that the council’s budgeting, business planning, monitoring and reporting processes identify progress on priority Māori transformational shift activities through the LTP years” (FIN/2014/34 (e)); and

· “that a Māori responsiveness reporting framework be developed to ensure monitoring and reporting of Māori transformational shift activities across the Auckland Council family as well as on long-term Māori well-being indicators” (FIN/2014/34 (f).

9. The new monitoring and reporting framework will be used to report progress in the 2014/15 financial year. It will also serve as a pilot for monitoring and reporting progress on Māori transformational shift activities for the duration of the 2015-2025 LTP. Piloting the framework in 2014/15 is in preparation for achieving the above resolutions.

Recommendation/s

That the Finance and Performance Committee:

a) Note that this report responds to the June 2014 Finance and Performance Committee resolution FIN/2014/34 (j); and identifies work underway to respond to resolutions (e) and (f);

b) Endorse the criteria (set out in paragraph 14) for the identification of projects which significantly contribute to the Auckland Plan Māori transformational shift ‘significantly lift Māori social and economic well-being’;

c) Note that this report specifies 29 projects and activities which will significantly contribute to the Auckland Plan Māori transformational shift ‘significantly lift Māori social and economic well-being’ in 2014/2015;

d) Note that the proposed Māori responsiveness activity and expenditure monitoring and reporting framework will be used to report progress in the 2014/15 financial year and is also being piloted for use in the 2015-2025 LTP years.

Comments

Māori responsiveness activity and expenditure monitoring and reporting framework

10. The proposed framework has addressed areas identified as weaknesses in the KPMG report including council’s processes for capturing spend and compiling reports on Māori outcomes; the criteria for measuring Māori outcomes; and the need to further embed improved processes into departmental and CCO operations. The revised framework is based on three main components:

· Clear criteria and a ranking system for the identification of projects which significantly contribute to the Māori transformational shift ‘significantly lift Māori social and economic well-being’;

· Partnering and support from Te Waka Angamua and Finance staff with business owners to ensure implementation of the monitoring and reporting system.

11. These three components are discussed further below.

Clear criteria

12. Clear criteria are critical to ensure that the new approach is well understood by staff across the council family, and within IMSB. Lack of clarity around the criteria has created confusion in previous years and resulted in mis-reporting of council’s activity.

13. Te Waka Angamua in consultation with the IMSB secretariat have developed six criteria and a ranking system (None=0; Low=1; Medium=2; High=3) for each criteria to better enable staff to understand whether a project or activity reaches the threshold of significantly contributing to the Māori transformational shift. The maximum score for any project or activity is 18 and the lowest is 0. The ranking system is discussed further below.

14. The six criteria are:

i. Clear alignment with council’s commitments to Māori in the Auckland Plan, Long-term Plan; local board plans and Unitary Plan;

ii. Direct contribution to ‘significantly lift Māori social and economic wellbeing’, council’s Effectiveness for Māori/ or Treaty Settlements work programs;

iii. Clear commitment from the Governing Body or a local board/s; or a CCO board;

iv. Clear commitment in departmental or CCO business plan or Māori Responsiveness Plan;

v. Clear targeting of a Māori audience for investment, collaboration or service delivery;

vi. Addresses and includes measures for demonstrable level of uptake, participation and/or satisfaction among Māori.

15. In order to support implementation of the new monitoring and reporting framework, the committee is requested to endorse the criteria set out in paragraph 14.

Improved financial and narrative based reporting system

16. Projects which score 13-18 are considered to be significantly contributing to the Māori transformational shift ‘significantly lift Māori social and economic well-being’. For the 2014/15 year, and going forward, these projects and other projects relating to the six Mayoral Annual Plan priority areas agreed with IMSB, are grouped within five financial portfolios:

· Whai Rawa - Māori economic well-being;

· Whai Painga – Māori social well being

· Whai Tiaki – Māori cultural well being

· Whai Tika – Council’s effectiveness for Māori

· Whai Tahinga –Treaty Settlements work programme

17. Council’s financial portfolio management system will track expenditure on activities in these five portfolios, delivering a number of benefits including;

· proactive monitoring of expenditure against budget enabling early identification of issues; and

· embedding customised reports into quarterly update reports to committees.

18. Projects and activities that score 7-12 will include those with targeted Māori expenditure in areas such as engagement, technical and professional advice and koha. These projects may lead to the identification of future Māori transformational activity. Financial information on these projects will be tracked using general ledger codes and explanatory narrative will provide other information on them.

19. Projects and activities that score 0-6 will be general activities which also benefit Māori but where the specific benefit to Māori is difficult to measure. These will be reported on with explanatory narrative only.

20. These combined tracking components will enable more comprehensive council group reporting on activity and expenditure related to achieving council’s commitments to Māori including Māori transformational shift activities, Treaty Settlements and progress against Te Tiriti o Waitangi Audit Response activities.

Te Waka Angamua and Finance partnering with business owners

21. Te Waka Angamua and Finance staff will work closely with business owners across the council group to provide support and guidance for embedding the new monitoring and reporting system. Further guidance and clear monitoring and reporting expectations for business owners will be developed and will include requirements for:

· A project plan including budget, project milestones and deadlines;

· Regular reporting on delivery against plan;

· Regular reporting on any expenditure and financial variance.

22. This partnering approach will also help Te Waka Angamua and Finance staff to gather information on the new approach during 2014/15 as part of piloting it in readiness for use during the 2015-2025 LTP years.

23. In addition, council’s Chief Executive is leading a Māori responsiveness leadership team across the council group. This team will provide oversight on work underway to achieve the Mayor’s LTP priorities and the agreed actions arising from the June 2014 the Finance and Performance Committee resolutions relating to the KPMG report.

Projects which will contribute to Māori transformational shift activities in 2014/15

24. Using the new criteria rating system, in 2014/205 29 projects or activities (totalling $5.8 million) scored 13-18 and will significantly contribute to the Māori transformational shift ‘significantly lift Māori social and economic well-being’.

25. The projects and activities listed by financial portfolio area are attached as Appendix B.

Reporting framework piloted in 2014/15 in preparation for LTP

26. The Māori responsiveness monitoring and reporting framework will be used to report progress in the 2014/15 financial year. It will also be used as a pilot for the monitoring and reporting framework to track progress towards Māori transformational shift activities through the 2015-2015 LTP years.

27. Piloting the framework in 2014/15 is in preparation for achieving resolution (e) from the June 2014 Finance and Performance Committee resolutions which includes “…ensure that the council’s budgeting, business planning, monitoring and reporting processes identify progress on priority Māori transformational shift activities through the LTP years”.

28. Currently the proposed financial portfolio management and tracking system is not able to capture activity from all of council’s CCOs. In the 2014/15 year one CCO has a project which rated 13-18 on the criteria rating scale. Progress on this will need to be captured through narrative and general ledger reporting. During the 2014/15 piloting phase we will work on extending the portfolio management system to ensure monitoring and reporting captures relevant activity from the whole council group including all CCOs.

29. The June 2014 Finance and Performance Committee also resolved “that a Māori responsiveness reporting framework be developed to ensure monitoring and reporting of Māori transformational shift activities across the Auckland Council family as well as on long-term Māori well-being indicators” (resolution f). Te Waka Angamua and IMSB secretariat staff are engaged in preliminary discussions on the long-term Māori well-being indicators and this work will continue throughout the 2014/15 year.

Consideration

Local board views and implications

30. Local boards have not been consulted in the preparation of this report. Local boards will be included in the business partnering process to support implementation of the monitoring and reporting system.

Māori impact statement

31. Te Waka Angamua and Finance have led the design of the proposed reporting and monitoring framework in consultation with the IMSB secretariat. Clarifying the contribution of projects and activities to lifting Māori social and economic well-being through improved criteria, monitoring and reporting will strengthen the council group response and have a positive impact for Māori and Auckland as a whole.

Implementation

32. The Māori responsiveness activity and expenditure monitoring and reporting framework will be implemented in accordance with decisions of this committee.

33. Progress on specific work programmes will be reported to relevant governing body committees and local boards. Total expenditure and activity towards the achievement of the Auckland Plan Māori transformational shift will be reported on a quarterly basis to the Finance and Performance Committee, and to the joint Governing Body and IMSB meetings. Reporting will also account for activity within council’s spatial priority areas such as the Southern Initiative and City Centre Master Plan.

Attachments

No.	Title	Page
a View	Finance and Performance Committee resolutions FIN/2014/34	29
b View	Projects which significantly contribute to the Māori transformational shift	31

Signatories

Authors

Deborah James - Executive Officer

Authorisers

Grant Taylor - Governance Director

Andrew McKenzie - Chief Finance Officer

Finance and Performance Committee

24 September 2014

Māori Cultural Well-Being
Project	Budget
Matariki Budget for Matariki Events celebrations held during Matariki	141,000
Waitangi Day Budget for Watangi celebrations at Okahu Bay Park event ($72k) and Barry Curtis Park event ($105k)	177,875
Whenua Rangatira Joint Management of Ngati Whatua Orakei lands as settled in the Orakei Act 1991. Budget funds employment and maintenance of settlement lands.	544,672
Ngāti Whātua Orakei Reserves Board Service the governance of the Ngāti Whātua Orakei Reserves Board	156,000
Co-management agreement - Waiomanu Pa co-management committee. Services existing co-management arrangement between council and iwi	50,738
Co-management agreement -Pukaki Tapu O Poutukeka Historic Reserve and Associated Lands Co-management Committee Services existing co-management arrangement between council and iwi	10,148
Co-management agreement -Pukekiwiriki Joint Management Committee Services existing co-management arrangement between council and iwi	142,065
Pukekiwiriki - Maori Engagement – Manawhenua engagement with regard to decision- making activities related to the parks ongoing management .	30,478
Mana Whenua Capacity Contracts Funding to better enable iwi to contribute to councils decision-making processes. Funding is allocated to the 19 manawhenua associated with Tamaki Makaurau	950,000
Papakainga Development Funding to assist Papakainga Development through development contribution grants	500,000
Marae Development Funding to assist marae development through the provision of grants.	740,000
Kaitiakitanga Projects	100,000
Commence the design of the Okahu Bay Daylighting Restoration of waterways returning piped stormwater services back to a more natural state.	270,000
Marine spatial plan Budget tagged to service Mana Whenua decision-making in the planning process.	50,000
Environmental strategy and policy management. Waahi tapu	770,000
Marae assistance fund – Manukau Southern Local Board budget to service marae assistance grants	144,956
Hoani Waititi Marae Budget to fund annual servicing of property maintenance associated to this marae	63,548
TOTAL	4,841,480

Māori Social Well-Being
Project		Budget
Maori programmes community development: Budget to contribute to Maori community projects/programmes as cases are presented through the year		23,588
Māori Sport and Recreation Plan Budget to support the development of the Māori Sport and Recreation Plan		30,000
Mataawaka Networks		50,000
Maori Programmes Budget contributing to regional Matariki events		81,180
Development of a signature Māori event		37,000
TOTAL		221,768
Māori Economic Well-being
Project	Budget
Māori Economic Development Programme	100,000
TOTAL	100,000

Treaty Settlements work programme
Project	Budget
Treaty Settlements Work Programme. Budget for actions generated by Treaty Settlements legislation	220,000
TOTAL	220,000
Council’s Effectiveness for Māori
Project	Budget
Māori Responsiveness Learning and Development Budget for organisational learning and development programmes	100,000
Māori Responsiveness Planning/ Treaty Audit Response Budget for actions generated by the Treaty Audit and Maori responsiveness Planning	320,000
TOTAL	420,000
Grand Total	5,803,248

Finance and Performance Committee

24 September 2014

Update on the six Māori priority project areas

File No.: CP2014/20327

Purpose

1. To provide a quarterly update to the end of June 2014, on progress on the delivery of Māori priority project area activities across the Auckland Council family against indicative budget allocations identified in the Annual Plan 2013/2014.

Executive summary

2. The financial information and commentary presented in this report has been informed directly by the project managers from the relevant departments and Council Controlled Organisation’s (CCO’s) responsible for each of the projects.

3. The financial information and brief commentary for the Māori priority project areas is summarised in the table below. Further detail is contained in Attachment A to this report.

Priority Area	Annual Budget 2013/2014 ($000)	Spend (to date) 2013/2014($000)	Status update
1.Major event - explore a Māori event	13	13	Full feasibility study is expected to be completed by ATEED during the 2014/2015 financial year with the aim of putting the Māori Signature event in the Long-term Plan (LTP). $13k spend to date is for consultation with mana whenua undertaken during Nov/Dec 2013, research of existing Māori event landscapes and preparation of a project plan to inform engagement with the Māori community.
2. Transport walking and cycling infrastructure - Te Reo signage/narrative, Māori design and public artworks	230	558	Auckland Transport (AT) has engagement planned for 2014/2015 and budget definition will be completed by the end of May 2014. Summary of actual spend: · AMETI $381k; · Dominion Rd $46k; · East West Link and Mill Rd $63k; · Road Safety promotion $6k; · Public transport $23k · City Rail Link $13k; · Walking and Cycling programme $5k. · Regional Land Transport Plan (RLTP) $13k
3. The Southern Initiative (TSI) - scope a project to address Māori interests	-	-	In the current financial year there is no specific budget for Māori specific projects, but all TSI work streams incorporate a Māori dimension. Examples of projects resulting in Māori Outcomes have been provided including:- · The Southern Initiative Infrastructure Consortium Māori and Pasifika Trades Training · Cancer Society Auckland (CSA) Smokefree project · Waimahia Housing development at Weymouth
4. Unitary Plan - funding of mana whenua engagement, use of iwi management plans, sites of significance and other Māori Provisions	200	21	Unitary Plan The Proposed Auckland Unitary Plan (PAUP) is now in the statutory submissions phase. The council will shortly review its response to submissions on those parts of the PAUP that impact on Māori Outcomes prior to the hearings. A portion of the overall budget for the PAUP will be required to respond to submissions on Māori Outcomes. An estimate of the cost is not available at this stage. Heritage Team Budget of $770k is confirmed in the Annual Plan 2014/2015 for identification and assessment of sites and places of significance to mana whenua for protection / management.
5. Tamaki Transformation Programme – opportunities for affordable housing, marae and associated education and cultural facilities	93	93	Provision has been made for $1.6 million of council funding for Tamaki Redevelopment Company (TRC) in the 2014/2015 Annual Plan. The Crown will also provide funding to TRC for the 2014/2015 financial year. Once further funding is allocated, TRC will continue to operate under the Tãmaki Strategic Framework, which includes projects with specific Māori outcomes. Summary of actual spend: · Cultural mapping with three iwi $30k; · Tamaki Learning champions programme $30k; · Tamaki Youth Employment programme $33k;
6. Stormwater - incorporate Mātauranga Māori	3,334	2,558 ^{^[1]}	The Stormwater Unit has projects in a number of categories that protect and / or enhance streams, estuaries and marine receiving environments and therefore contribute positively towards the māuri of water in the Auckland region.

Recommendation/s

That the Finance and Performance Committee:

a) receive the report.

Comments

4. Budgets for 2014/2015 are currently under review by departments and CCO’s and at the time of preparing this report had not been finalised.

5. Some reprioritisation has occurred within the stormwater unit in relation to the delivery of stormwater projects that incorporate matauranga Māori.

6. There has been an underspend of allocated budget in relation to the Proposed Auckland Unitary Plan project in terms of engagement costs. However significant budget is allocated for 2014/2015 to progress work on a future plan change to identify and assess sites and places of significance to mana whenua for protection and management.

Consideration

Local board views and implications

7. Local boards were not involved in the preparation of this report as the relevant budgets are regional.

Māori impact statement

8. This report is about progress on matters which will impact positively on Māori. From this information provided, it appears that all projects have delivered a range of Māori transformational shifts.

General

9. On 21 November 2013 the Budget Committee agreed that staff report to the Budget Committee by 27 March 2014 on the milestones and funding to progress the 2013/2014 Māori priority projects.

10. The report on the six Māori Priority Project Areas has been reported on a quarterly basis to the Budget Committee since February 2014. In May 2014, it was agreed that regular progress and planning updates on the Māori priority project areas be reported to the Finance and Performance Committee.

11. The financial information contained in this report is provided at a level of detail that is not currently able to be accurately captured in council’s financial management system and is based on estimates and commentary from the project managers in charge of the relevant priority areas.

Attachments

No.	Title	Page
a View	Progress update on the six Maori project areas	39

Signatories

Authors

Jacky Bartley - Principal Planner

Authorisers

Johnnie Freeland - Paearahi Matua - Manager

Grant Taylor - Governance Director

Andrew McKenzie - Chief Finance Officer

Finance and Performance Committee

24 September 2014

Te Tiriti o Waitangi Audit Response work programme 2014/2015

File No.: CP2014/21590

Purpose

1. This report proposes the 2014/2015 work program to deliver on priority elements in the third and final year of council’s Treaty Audit response work program. This report responds to the August 2014 Finance and Performance Committee resolution (FIN/2014/45 (c)) that :

· “in relation to Appendix D: Treaty Audit response, Te Waka Angamua liaise with the Independent Māori Statutory Board to agree the 2014/2015 Treaty of Waitangi Audit response work programme, and that it be presented to the Finance and Performance Committee in September 2014”.

Executive summary

2. Te Tiriti o Waitangi/ Treaty of Waitangi audit undertaken in 2011 was one of two key projects in the first (2011/2012) funding agreement between the Independent Māori Statutory Board (IMSB) and council. The audit provides a basis for IMSB to fulfil its statutory obligation to assist council to act in accordance with statutory provisions referring to Te Tiriti o Waitangi.

3. In July 2012 the Governing Body adopted the Treaty Audit response work program. This set out a three year work program of actions in response to the Treaty Audit recommendations. Progress towards these agreed actions has been reported to this committee and to the joint Governing Body and IMSB quarterly meetings.

4. 2014/2015 is the third and final year of the Treaty Audit response work program adopted in 2012. Te Waka Angamua staff, in consultation with the IMSB secretariat, have developed proposed work program for 2014/2015, set out in this report.

5. The proposed work programme is focused on delivering on the remaining priority elements of the 2012 Treaty Audit recommendations. Milestones and deliverables for these actions will be agreed with the IMSB secretariat following the committee’s approval of the proposed work program.

6. A number of the agreed Treaty Audit response actions need continuing work beyond the original three year timeframe to embed best practice and ensure continuous improvement throughout the council group. This work will become part of council’s Effectiveness for Māori work program which is focused on building internal capacity and capability across council.

7. IMSB are preparing to undertake the next Te Tiriti o Waitangi audit of council. The audit will take place between October and December 2014, with the findings reported in February 2015. IMSB secretariat staff are currently discussing the proposed scope of the audit with Te Waka Angamua staff.

Recommendation/s

That the Finance and Performance Committee:

a) approve the proposed 2014/2015 work program to deliver on priority elements in the third and final year of council’s Treaty Audit response work program.

b) note that Te Waka Angamua staff will meet fortnightly with IMSB secretariat staff to track progress on milestones and deliverables for these actions.

Comments

8. Te Tiriti o Waitangi/ Treaty of Waitangi audit undertaken in 2011 was one of two key projects in the first (2011/2012) funding agreement between the Independent Māori Statutory Board (IMSB) and council. IMSB engaged Price Waterhouse Coopers to assess council’s performance against our obligations in respect of Te Tiriti o Waitangi and our statutory responsibilities towards Māori. The audit provides a basis for IMSB to fulfil its statutory obligation to assist council to act in accordance with statutory provisions referring to Te Tiriti o Waitangi.

9. The audit was undertaken against an agreed best practice audit approach framework between the council and the IMSB. From the outset of the audit project, it was anticipated that many areas for improvement would be identified. The Treaty Audit established a baseline for the council to understand its current state of compliance and provided a solid base for a structured work program to address the recommendations.

10. In July 2012 the Governing Body adopted the Treaty Audit response work program. This set out a three year work program of actions in response to the Treaty Audit recommendations. Progress towards these agreed actions has been reported to this committee and to the joint Governing Body and IMSB quarterly meetings.

11. The Treaty Audit response work program is part of a wider portfolio of work intended to lift council’s overall responsiveness to Māori. A key element of the Treaty Audit was recommendations seeking council’s policy commitment to Te Tiriti o Waitangi/ Treaty of Waitangi and the formal adoption of a legal framework of the statutes that give rise to Māori legislative rights. In 2012 The Governing Body affirmed its policy position regarding council’s obligations and commitments toward Māori through the Māori responsiveness framework. The framework details the legal basis for council’s policy position and outlines steps to integrate knowledge and improve practice in respect of these obligations into standard business processes across the council family.

12. 2014/2015 is the third and final year of the Treaty Audit response work program adopted in 2012. Te Waka Angamua staff, in consultation with the IMSB secretariat, have developed the proposed work program for 2014/2015, set out below.

Te Tiriti o Waitangi Audit Response Work Programme 2014/15		Te Tiriti o Waitangi Audit Recommendation
	Knowledge of Obligations
1	Evaluation of Māori responsiveness business planning pilots in preparation for further roll out.	Increase awareness and set out principles, rules and guidelines to direct council and CCO actions.
	Policies
2	Development of Te Reo framework	Develop Māori place names policy The media for communication should include Te Reo options where possible and promoted in council documents, signs and other communication tools.
3	Development of Māori relationships framework	Develop Māori partnership policy Develop management of memoranda of understanding policy Development of management of court order agreements policy Develop joint management agreements policy Develop transfer of powers policy.
4	Development of Nga Taonga Tuku Iho framework	Develop management of Taonga policy.
5	Development of framework for Mana Whenua participation in natural resource management	Develop co-management/co-governance policy Develop joint management agreements policy Develop transfer of powers policy. Develop protection and management of sensitive information policy
6	Development of significance and engagement policy	Review significance policy Provide clarity over what constitutes a significant decision and how this is determined.
7	Development/update of hearings policy	Update of Hearings Policy
	Processes, systems and data
8	Continuation of Māori heritage programme	Wāhi tapu information management.
9	Development of Tamaki Makaurau Mana Whenua Kaitiaki Forum	Consider establishment of Mana Whenua/Kaitiaki Forums. Council should work together with Mana Whenua (and Mataawaka where appropriate) to establish effective resourcing options.
10	Development of Māori information portal	Establish and implement a centralised system to track Mana Whenua, key contacts and their details, and to track current consultation activities Develop systems which allow information to be shared across the organisation Information and knowledge on Māori values, interests and aspirations should be collated, recorded and shared to ensure coordinated consultation efforts.
11	Māori responsiveness plans (three new plans completed in 2014/2015)	Embed Māori requirements within the day to day business as usual approach and an effective compliance covering both Māori statutory requirements and other legal requirements
12	Completion of Māori relationships framework	Instances of lost agreements should be resolved in collaboration with Māori organisations, and a decision agreed to on whether to replace these agreements Court order agreements register. Relationship framework between council and Māori should be established at a chief to chief, governance, service design and operational level across council
13	Development of framework for Mana Whenua participation in natural resource management	Transfer of powers and joint management agreement process
14	Continuation of Māori heritage programme	The Māori Strategy and Relations unit and Resource Consents team should work together with Mana Whenua to establish monitoring processes for consents
15	Develop Māori friendly recruitment process	Recruitment process.
	Capacity
16	Continuation of Mana Whenua capacity building programme Development of Mataawaka communication and education programme	Council should support Māori with training in council language and process, information, council expertise or systems e.g. GIS to improve quality of Māori contribution to council decision making.
	Training and awareness
17	Evaluation of link between staff participation in Ngā Kete Akoranga and departmental Māori responsiveness plans	Incorporation of training and awareness KPIs into staff performance objectives and competency frameworks.
	Communication
18	Roll out of best practice from evaluation of Māori responsiveness business planning case studies.	The example of current good initiatives should be shared with the wider organisation, local boards and CCOs to promote awareness of other ways to upskill staff and increase awareness of Māori aspects.
	Monitoring
19	Revised monitoring and reporting framework (as presented to Finance and Performance Committee on 24 Sept 2014).	Monitoring the effectiveness of policies, processes and controls to ensure compliance with obligations to Māori People performance against competency frameworks and performance objectives Short term key performance indicators Consideration should also be given to monitoring CCO and local board performance in these areas.

13. The proposed work programme for 2014/2015 builds on work already completed in the previous two years and is focused on delivering on the remaining priority elements of the 2012 Treaty Audit recommendations. Te Waka Angamua staff will meet fortnightly with IMSB secretariat staff to track progress on milestones and deliverables for these actions.

14. A number of the agreed Treaty Audit response actions need continuing work beyond the original three year timeframe to embed best practice and ensure continuous improvement throughout the council group. This work will become part of council’s Effectiveness for Māori work program which is focused on building internal capacity and capability across council.

Next Te Tiriti o Waitangi Audit

15. IMSB are preparing to undertake the next Te Tiriti o Waitangi audit of council. The audit will take place between October and December 2014, with the findings reported in February 2015. IMSB secretariat staff are currently discussing the proposed scope of the audit with Te Waka Angamua staff.

Consideration

Local board views and implications

16. Local board views have not been sought in the preparation of this report. A number of the Treaty Audit recommendations impact on the work of local boards and require their involvement in specific work programs. Te Waka Angamua relationship managers will work with local boards to determine how best to address this.

Māori impact statement

17. This report summarises work program activities planned in 2014/15 to transform the council’s approach in fulfilling its responsibilities and obligations to Māori. The program forms part of a wider program of work intended to lift council’s overall responsiveness to Māori in contributing to Māori well-being.

Implementation

18. Progress in delivering Te Tiriti o Waitangi Audit response work programme will reported to this committee quarterly.

19. The work program is an important part of council’s overall Māori responsiveness approach. Total expenditure and activity towards the achievement of the Auckland Plan Māori transformational shift will be reported on a quarterly basis to this committee, and to the joint Governing Body and IMSB meetings. Reporting will also account for activity within council’s spatial priority areas such as the Southern Initiative and City Centre Master Plan.Attachments

There are no attachments for this report.

Signatories

Authors

Johnnie Freeland - Paearahi Matua - Manager

Authorisers

Grant Taylor - Governance Director

Andrew McKenzie - Chief Finance Officer

Finance and Performance Committee

24 September 2014

Delegation of power to adjust solid waste fees to the Chief Executive

File No.: CP2014/20370

Purpose

1. The purpose of the report is to seek a delegation to the Chief Executive for the authority to adjust the non-regulatory fees and charges for solid waste services.

Recommendation

That the Finance and Performance Committee

a) delegate authority to the Chief Executive the power to adjust the non-regulatory fees and charges for solid waste services.

Comments

2. The solid waste services provided by the council include the:

· collection of kerbside rubbish

· operation of refuse transfer stations and recycling centres where rubbish not suitable for kerbside collection can be collected and sorted for further disposal, processing, reuse or sale.

3. The council sets fees (user charges) for the:

· collection of kerbside rubbish in the districts of the former North Shore City Council, Waitakere City Council, Franklin District Council and Papakura District Council

· operation of its transfer stations at Waitakere and Waiheke, and community recycling centres at Waiuku and Helensville.

4. The relevant fee schedules are included in Attachment A.

5. The council is in competition with private waste service providers in this market. The council’s forecast revenue of $20 million from these services is dependent on its performance relative to its competitors. In order to generate an appropriate return for ratepayers’ investments the council needs to be able to respond in a timely manner to the actions of its competitors.

6. The Revenue and Financing policy provides that “council will amend fees and charges annually to reflect increases in costs as measured by the council rate of inflation”. The council rate of inflation for 2014/2015 is 1 per cent. There are two option to change fees other than in line with the rate of inflation:

· the Finance and Performance Committee can make a decision on a “case-by-case” basis

· the Committee can delegate decision making to the Chief Executive.

7. The time required for the political process prevents the council from making timely commercial adjustment in reaction to changes initiated by competition. Over the last two years the council has lost some market share, due partly to the inability to make swift response to the price competition from other players in the market or to introduce marketing initiatives.

8. To give the council greater flexibility in commercial price setting officers recommend that the Committee delegate to the Chief Executive the power to change non-regulatory fees and charges for solid waste services.

9. In making decisions with regard to price adjustments, the Chief Executive (or those persons with the delegated authority) will still need to meet the relevant decision making requirements set out in Subpart 1 of Part 6 of the Local Government Act (LGA) including consulting where appropriate. In addition the decision-maker will need to have regard to the principles in the Revenue and Financing Policy including considerations of affordability, market neutrality and minimising the effects of change, and all other relevant council policies.

10. As part of the Long-Term Plan 2015-2025 process, officers will advise on the adoption of a new Revenue and Financing policy. This will propose greater flexibility in commercial price setting. In the interim, the delegation recommended in this report will provide the council with the flexibility required to react to market changes in a timely manner.

Consideration

Local board views and implications

11. The governing body has decision making authority for solid waste fees and charges. Local board views have not been sought on the proposed delegation.

12. Local board views will be sought (where required) on fee changes. Local board feedback on the issue of commercial pricing flexibility will be sought when the council reviews its Revenue and Financing Policy as part of the process of developing the Long-Term Plan 2015-2025.

Māori impact statement

13. The recommendations in this report do not directly impact on Maori or any other ratepayers. The council does not hold information on the ethnicity of ratepayers or patrons of council services, so is not able to identify the impact of the exercise of this delegation on Māori. The impact of the exercise of the delegation on Māori will be similar to that on other residents.

14. The Independent Māori Statutory Board has two members on the Finance and performance committee who will consider this report. The Independent Māori Statutory Board will also be able to provide feedback on the issue of commercial pricing flexibility when the council reviews its Revenue and Financing Policy as part of the Long-term Plan 2015-2025 process.

Implementation

15. There are no implementation issues associated with the recommendation included in this report.

Attachments

No.	Title	Page
a View	Fees and charges for solid waste services	53

Signatories

Authors

Eric Wen - Modeller User Charges

Andrew Duncan - Manager Financial Policy

Authorisers

Matthew Walker - Manager Financial Plan Policy and Budgeting

John Dragicevich - Manager Infrastructure and Environmental Services

Andrew McKenzie - Chief Finance Officer

Finance and Performance Committee

24 September 2014

Attachment A Fees and charges for solid waste services

Refuse bag prices

Description	2014/15 price (incl. GST)
Waitakere	$2.25
Franklin	$2.20
Papakura	$1.95
Auckland Waiheke red bags	$3.90
North Shore 60 litre bag	$2.25
North Shore 40 litre bag	$2.00
Auckland CBD (a pack containing two rubbish and three recycling bags)	$7.70

Waitakere 'user pays' Inorganic collection

Description	2014/15 price (incl. GST)
Inorganic collection per household	$25.00

Waitakere Refuse and Recycling Transfer Station

Type of waste	Origin	Basis of charging	Disposal charge 2014/15 (incl. GST)
Bag Rubbish	Domestic	Per bag (Max.2 Bags)	$5.30
Refuse	Domestic	Per car boot (Max.100kg)	$24.10
Refuse	Domestic	Per SUV/station wagon (Max.260kg)	$38.40
Refuse	Domestic	Per trailer/ute/van (max.260kg)	$38.40
Refuse	Domestic	Per tonne (min. $38.40 charge applies)	$144.40
Refuse	Commercial	Per tonne (min. $38.40 charge applies)	$144.40
Greenwaste	Domestic	Per car Boot (Max.100kg)	$14.70
Greenwaste	Domestic	Per SUV/station wagon (max.260kg)	$25.30
Greenwaste	Domestic	Per trailer/ ute/van (max.260kg)	$25.30
Greenwaste	Domestic	Per tonne (min. $25.30 charge applies)	$96.00
Greenwaste	Commercial	Per tonne (min. $25.30 charge applies)	$96.00
Cleanfill	Domestic	Per tonne (min. $38.40 charge applies)	$144.40
Cleanfill	Commercial	Per tonne (min. $38.40 charge applies)	$144.40
Tyres	-	Per car – loader tyre	$3.80 - $51.40
Polystyrene	Commercial	Per tonne (min. $62.00 charge applies)	$1,230.70
Car Bodies	-	Per whole car (without rubbish) - car (with rubbish)	$0.00 - $37.40

Waiheke Transfer Station

Description		Disposal charge 2014/15 (incl. GST)
Official Auckland City Council red rubbish bags Note: customers may purchase additional official red rubbish bags from the transfer station at $3.90 per bag.		No charge to drop off
Minimum charge for disposal, except for recyclables, organic rubbish or gas bottles		$16.00
Car or station wagon load (Net load up to 100kg)		$31.90
Single axle trailer load (Net load up to 300kg)		$62.90
Utility or van load (Net load up to 300kg)		$62.90
Trucks and large trailers (Net load up to 300kg)		$62.90
Vehicles or containers not covered by any category above (Net load up to 300kg)		$62.90
Loads over 300kg (regardless of load category)		$206.50
Car tyre		$6.90
Light truck tyre		$15.90
Truck tyre		$62.50
Green waste	Pampas, flax, toetoe, ginger, bamboo, wandering jew, all palms (including cabbage tree) and tree roots	Dependent on load size as above
	All other	No charge
Recyclables		No charge
Reusable items (as accepted)		No charge
Whiteware and computers (must be separated)		$13.60
Commercial weighing minimum charge (by prior arrangement)		$17.00
Removing gas from refrigerators		$6.80

Finance and Performance Committee

24 September 2014

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

That the Finance and Performance Committee:

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

The general subject of each matter to be considered while the public is excluded, the reason for passing this resolution in relation to each matter, and the specific grounds under section 48(1) of the Local Government Official Information and Meetings Act 1987 for the passing of this resolution follows.

This resolution is made in reliance on section 48(1)(a) of the Local Government Official Information and Meetings Act 1987 and the particular interest or interests protected by section 6 or section 7 of that Act which would be prejudiced by the holding of the whole or relevant part of the proceedings of the meeting in public, as follows:

C1 Waitemata City Sports Club Inc

Reason for passing this resolution in relation to each matter

Particular interest(s) protected (where applicable)

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

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

s7(2)(a) - The withholding of the information is necessary to protect the privacy of natural persons, including that of a deceased person.

In particular, the report contains details relating to the business activities of a third party, together with legal opinion received from Council lawyers..

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

In particular, the report contains details relating to the business activities of a third party, together with legal opinion received from Council lawyers..

s48(1)(a)

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

C2 Transformational Programmes budget update

Reason for passing this resolution in relation to each matter

Particular interest(s) protected (where applicable)

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

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

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

In particular, the report contains commercially sensitive information, the disclosure of which could disadvantage the council in negotiation..

s48(1)(a)

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

[1] The stormwater unit have reprioritised their spend since the beginning of the FY 2013/14. The number presented is based on the projects that were identified at the start of FY 2013/14. This amount was reported in the August 2014 Financial and Performance Committee Report on Maori Outcomes.