Agenda of Finance and Performance Committee

TERMS OF REFERENCE

Responsibilities

This committee will be responsible for monitoring overall financial management and the performance of the council parent organisation and the financial monitoring of the Auckland Council Group. It will also make financial decisions required outside of the annual budgeting processes. Key responsibilities include:

· Financial management

· Approval of non-budgeted expenditure

· Write-offs

· Acquisition and disposal of property relating to the Committee’s responsibilities

· Monitoring achievement of financial and other measures of performance and service levels

· Recommending the Annual Report to the Governing Body

Powers

(i) All powers necessary to perform the committee’s responsibilities.

Except:

(a) powers that the Governing Body cannot delegate or has retained to itself (see Governing Body responsibilities)

(b) where the committee’s responsibility is limited to making a recommendation only

(ii) Approval of a submission to an external body

(iii) Powers belonging to another committee, where it is necessary to make a decision prior to the next meeting of that other committee.

(iv) Power to establish subcommittees

EXCLUSION OF THE PUBLIC – WHO NEEDS TO LEAVE THE MEETING

Members of the public

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

Those who are not members of the public

General principles

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

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

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

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

Members of the meeting

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

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

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

Staff

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

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

Local Board members

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

IMSB

· Members of the IMSB who are appointed members of the meeting remain.

· Other IMSB members and IMSB staff remain if this is necessary in order for them to perform their role.

CCOs

Representatives of a CCO can remain only if required to for discussion of a matter relevant to the CCO.

Finance and Performance Committee

19 February 2015

Disposal Recommendation Report

File No.: CP2015/01166

Purpose

1. This report seeks approval to sell one non-service council owned site that Auckland Council Property Limited (ACPL) considers suitable for sale. This report also presents a council owned property that is currently non-service that a council department and local board seek to retain for a service use.

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. Capital receipts from the sale of 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.

3. The first property presented for disposal in this report, 39 Taka Street, Takanini has 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 this site. A detailed overview of the rationalisation process undertaken for this site 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 in Attachment A to this report.

4. The second property presented in this report, 118 Rodney Street, Wellsford, has been through the agreed consultative process including organisation wide internal officer consultation, local board and Iwi engagement. During the internal consultation process, an alternative service use was identified. Using this site for the proposed alternative service use is supported by the local board. A detailed overview of the rationalisation process undertaken for this site 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, and the business case received in support of the retention of this site is contained in Attachment B to this report.

Recommendation/s

That the Finance and Performance Committee:

a) agree, that subject to the satisfactory conclusion of any required statutory processes:

i) to approve the disposal of the land at:

· 39 Taka Street, Takanini comprised of an estate in fee simple firstly comprising approximately 1,543m² more or less being Lot 6 DP 74054 and secondly, an estate in fee simple of one fifth share in 631m² in Lot 1 DP 74051 contained in certificate of title NA29D/1166, following the subdivision and retention of a strip of approximately 20 metres;

ii) To the retention of 118 Rodney Street, Wellsford comprised of an estate in fee simple comprising approximately 1226m²total more or less being section 77 Block XVI Otamatea Survey District contained in certificate of title NA691/42;

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

Discussion

5. 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.

6. 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.

7. 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.

8. 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. The EOI process also 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.

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

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

Consideration

Local Board Views and Implications

11. 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.

12. 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 may be 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.

13. 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.

14. The views of the relevant local board are contained in the respective property attachments.

Maori Impact Statement

15. 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.

16. 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.

17. 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.

18. 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.

19. 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.

General

20. N/a.

Implementation Issues

21. 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	Property information for 39 Taka Street, Takanini	19
b View	Property information for 118 Rodney Street, Wellsford	23
c View	Business case for the retention of 118 Rodney Street, Wellsford	27

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, General Manager Property, Auckland Council Property Department
Authorisers	Kevin Ramsey, Chief Financial Officer, Auckland Council

Finance and Performance Committee

19 February 2015

Auckland Regional Amenities draft Funding Plan 2015-16 proposed submission

File No.: CP2015/01163

Purpose

1. To approve a submission on behalf of Auckland Council to the Auckland Regional Amenities Funding Board (Funding Board) draft Funding Plan 2015-16.

Executive Summary

2. The Funding Board was established by the Auckland Regional Amenities Funding Act (the Act). The purpose of the Act was to provide a mechanism for adequate, sustainable, and secure funding to the Amenities.

3. Each year, the Amenities may submit a funding application to the Funding Board, which must then analyse the funding applications, and prepare an annual draft Funding Plan.

4. The draft Funding Plan details the provisional allocations of funding as determined by the Funding Board. It has been circulated publicly, calling for submissions by Friday 20 February 2015.

5. The Funding Board will then consider the submission, and finalise the Funding Plan. The finalised Funding Plan will then be referred to Auckland Council for approval.

6. The draft Funding Plan (Appendix A) proposes a total levy for 2015-16 of $15,148,400 representing an increase of $837,400 (or 5.85%) over 2014-15. However a like for like comparison (refer Table 2) with last year is difficult due to:

(i) the proposed levy for 2015-16 includes a step-up in funding of $1million for the trial of annualising the Auckland Arts Festival from 2016.

(ii) one amenity, the Auckland Rescue Helicopter Trust (ARHT) chose not to make an application to the Funding Board and the annual amount of $450,000 is deducted from the total.

(iii) Stardome Observatory received a one-off $150,000 increase in 2014-15 to undertake a strategic review.

7. The Funding Board are recommending a 3.57% increase in both board remuneration for directors (from $14,000 to $14,500) and Chair fees (from $28,000 to $29,000), and to increase the deputy chair remuneration from 1.25 to 1.50 times director fees (from $17,500 to $21,750). Any increase in director’s fees would be absorbed within the Funding Board’s administration budget which is provided by council.

8. The Funding Board proposes that an amount of $400,000 be paid back to Auckland Council, being the additional monies paid to the Funding Board to cover the costs of the ARHT judicial review proceedings.

9. The draft Funding Plan includes the Amenities indicative funding application amounts for 2016-17 and 2017-18. The indicative application amount for 2016-17 totals $16,927,219, an increase of approximately 14% on the proposed funding amount of $14,833,400^{^[1]}.

10. The key points of the proposed submission (Appendix B) are to:

· acknowledge the Funding Board and the Amenities for their contribution towards making Auckland a vibrant, attractive and safe place to live and visit.

· acknowledge the Funding Board for proposing a moderate increase in funding for the Amenities.

· note that the majority of Amenities have received substantial increases in ratepayer funding since the Act came into force, and that this may indicate that some of the Amenities are becoming increasingly reliant on this funding. The draft submission asks the Funding Board to continue working with the Amenities to ensure each Amenity has a plan for achieving financial sustainability and ideally a decreased reliance on ratepayer funding.

· express concern at the level of funding the Amenities have indicated they will apply for in future years. The submission asks that the Funding Board discuss with Council any substantial increases in funding that are proposed by an Amenity, particularly those that are the result of the proposed increases in levels of service, and/or capital developments.

· recommend that the Funding Board remuneration review be considered at the same time as CCO director remuneration reviews, in 2016 following the triennial election.

Recommendation/s

That the Finance and Performance Committee:

a) approve the submission to the Auckland Regional Amenities Funding Board draft Funding Plan 2015-16.

b) authorise the Chair of the committee to sign the submission on behalf of Auckland Council.

Discussion

11. The Funding Board was established under the Auckland Regional Amenities Funding Act 2008 (the Act). The purpose of the Act was to establish a mechanism to provide adequate, sustainable, and secure funding for the specified Amenities that provide arts, educational and rescue services throughout the Auckland region.

12. The Amenities are:

· Auckland Observatory and Planetarium Trust Board

· Auckland Philharmonia

· Auckland Regional Rescue Helicopter Trust

· Auckland Theatre Company Limited

· Coast Guard Northern Region Incorporated

· New Zealand Maritime Museum Trust Board

· New Zealand Opera Limited

· Surf Life Saving Northern Region Incorporated

· The Auckland Festival Trust

· Watersafe Auckland Incorporated

13. The Funding Board is an independent body, which is responsible for allocation of the annual funding provided by Auckland Council for the Amenities.

14. The role of the Funding Board is to assess the annual funding applications received from the Amenities against the funding principles within the Act and adopted by Auckland Council.

15. The funding principles in the Act require the Funding Board to have regard to the following;

· The primary purpose of the funding to the Amenities is to contribute to the expenses that the Amenities incur in providing facilities or services;

· Funding is not available for any part of facilities or services that the Amenities provide outside the Auckland region;

· Funding is not available for capital expenses; and

· Funding is available only if the Amenity has made all reasonable endeavours to maximise their funding from other available sources.

16. In November 2012, Auckland Council adopted two additional funding principles, which require the Funding Board to have regard to the Council’s proposed rates increase for the forthcoming year, and require the Amenities to align their activities to the Auckland Plan, by adopting relevant performance measures.

17. Once the Funding Board has conducted the analysis of the Amenities funding applications, it is required under the Act to prepare the draft-funding plan, circulate it for public consultation, and call for public submissions. The Council is also permitted to make a submission on the draft Funding Plan.

18. The following table sets out the timeline for the 2015-16 funding process:

Table 1. 2015-16 Auckland Regional Amenities Funding Process
23 September 2014	Amenities submit funding applications to the Funding Board.
19 January 2015	Funding Board publically notifies draft Funding Plan.
20 February 2015	Deadline for submissions on the draft Funding Plan.
3 March 2015	Funding board submissions hearing.
17 March 2015	Funding board considers submissions, and makes any amendments it considers appropriate to the draft Funding Plan. The Funding Board then submits the Funding Plan to Auckland Council together with details of the proposed levy.
19 March 2015	Auckland Council considers the Funding Plan (having regard to the funding principles), and either approves or rejects the proposed levy.
No later than 30 April 2015	If Auckland Council approves the Funding Plan, the Funding Board meets to deliberate on and adopt its Funding Plan and fix the levy.
1 July 2015	Auckland Council pays the levy to the Funding Board.

19. Council staff have engaged with the Funding Board throughout the funding application process. It is hoped that open communication with the Funding Board will help identify any issues so that they can be addressed constructively. However, it is acknowledged that the Funding Board and Council have different roles under the Act, and the Funding Board has a statutory obligation to act independently of Council.

Main features of the draft Funding Plan

20. The following table sets out the amount of funding applied for, the provisional allocation of funding to each of the Amenities and also shows how much they received in 2014-15.

Table 2. 2015-2016 Provisional Allocation of Grants to Specified Amenities
Amenity	Grant Allocated by Funding Board 2014-15	Amenity Funding Application 2015-2016	Provisional Allocation of Grant 2015-16	Year on Year Change	%
Amenity	Grant Allocated by Funding Board 2014-15	Amenity Funding Application 2015-2016	Provisional Allocation of Grant 2015-16	Year on Year Change	%
Auckland Arts Festival	$2,305,000	$3,375,000	$3,305,000	$1,000,000	43.38
Auckland Philharmonia	$2,942,000	$3,344,000	$3,042,000	$100,000	3.40
Auckland Regional Rescue Helicopter	$450,000	0	0	-$450,000
Auckland Theatre Company	$1,415,000	$1,450,000	$1,450,000	$35,000	2.47
Coastguard Northern Region	$670,000	$683,400	$683,400	$13,400	2.00
New Zealand Opera	$800,000	$953,538	$875,000	$75,000	9.38
Stardome Observatory and Planetarium	$1,269,000	1,253,000	1,169,000	-$100,000	-7.88
Surf Life Saving Northern Region	$1,200,000	$1,234,221	$1,234,000	$34,000	2.83
Voyager – New Zealand Maritime Museum	$1,975,000	$3,950,000	$2,025,000	$50,000	2.53
Watersafe Auckland	$970,000	$1,168,000	$1,050,000	$80,000	8.25
Total	$13,996,000	$17,411,159	$14,833,400	$837,400	5.98
Funding Board Administration	$315,000	$315,000	$315,000	0.00	0.00
Total Levy payable by Auckland Council	$14,311,000	$17,726,159	$15,148,400	$837,400	5.85

21. The total levy sought for 2015-16 is $15,148,400 representing an increase of $837,400 (or 5.85%) over 2014-15. However a like for like comparison shows that the total levy sought for the seven of the amenities and administration in 2015-16 is $10,674,000, an increase of $387,400 (or 3.76%) over 2014-15. A direct comparison over the ten amenities is not possible because:

(i) the proposed levy for 2015-16 includes a step-up in funding of $1million for the trial of annualising the Auckland Arts Festival from 2016. The council have previously agreed in principle to trial an annual arts festival in 2015, 2016 and 2017.

(ii) one amenity, the Auckland Rescue Helicopter Trust (ARHT) chose not to make an application to the Funding Board. The ARHT received $450,000 in 2014-15. This needs to be taken into account when comparing the 2014-15 levy with the draft 2015-16 funding plan.

(iii) Stardome Observatory received a one-off $150,000 increase to undertake a strategic review in 2014-15. Therefore there 2014-15 grant should be thought of as $1,119,000 plus $150,000 one-off grant.

Indicative Funding Requests for July 2016 to June 2017

22. The draft Funding Plan includes the Amenities’ indicative funding application amounts for 2016-17 and 2017-18. The 2016-17 amount totals $16,927,219, an increase of approximately 14% on the proposed 2015-16 levy.

23. The Funding Board have expressed concern at the level of funding the Amenities have indicated they will seek in 2016-17 and future years.

24. Much of the indicative increase in funding applications relates to the operational expenditure in relation to the proposed redevelopment of the Voyager New Zealand Maritime Museum.

25. The draft submission requests that the Funding Board continue to work closely with Auckland Council in regard to any substantial increase in funding. Auckland Council can then assess whether the proposed increase in level of service is a desirable outcome from a council perspective.

Financial sustainability of the Amenities

26. Most of the Amenities have enjoyed substantial increases in funding since the Act came into force. Total ratepayer funding provided under the Act has increased from $9,000,000 in 2009-10 to $14,311,000 in 2014-15.

27. Some Amenities have been very successful at generating funds from other sources. However, for other Amenities, ratepayer funding via the Funding Board is an increasing percentage of their total revenue. This may reflect an increasing reliance on ratepayer funding for those Amenities.

28. This was also a concern expressed by council last year with council looking to see an improvement in the Amenities ability to generate other funding streams.

Draft Council submission

29. Council staff have reviewed the draft Funding Plan, with general feedback being that the plan is well considered. Following the review of the draft Funding Plan, and building on engagement staff have had with the Funding Board during the funding process, it is recommended that Auckland Council’s submission to the Funding Board cover the following areas:

· acknowledge the Funding Board and the Amenities for their contribution towards making Auckland a vibrant, attractive and safe place to live and visit.

· acknowledge the Funding Board for proposing a moderate increase in total funding taking into account factors such as the trial annualisation of the Arts Festival.

· note that the majority of Amenities have received substantial increases in ratepayer funding since the Act came into force, and that this may indicate that some of the Amenities are becoming increasingly reliant on ratepayer funding. The draft submission asks the Funding Board to continue working with the Amenities to ensure they have a plan for achieving financial sustainability and ideally a decreased reliance on ratepayer funding.

· express concern at the level of funding the Amenities have indicated they will apply for in future years. The submission asks that the Funding Board continue to discuss with Council any substantial increases in funding that are proposed by an Amenity, particularly those that are the result of the proposed increases in levels of service, and/or capital developments.

ARHT

30. ARHT have decided not to make an application to the Funding Board for the 2015-16 Funding Levy. Consideration will be given through the LTP process as to whether council should make a capital contribution towards the purchase of a new rescue helicopter.

31. This means that the level of funding that ARRHT would normally receive ($450,000 in 2014-15) has reduced the overall total funding for the 2015-16 draft Funding Plan.

32. The Funding Board incurred costs relating to the ARRHT judicial review proceedings and an additional payment of $400,000 was provided by the council. This funding was not required by the Funding Board and a refund of $400,000 will be returned to the council in a separate transaction to maintain appropriate financial reporting.

Administration and Board member fees

33. The Act provides that Auckland Council must decide how much to pay each member of the Funding Board after considering a recommendation from the Funding Board.

34. Auckland Council must decide to pay an amount that is appropriate having regard to both the public purpose of the Board’s functions and the extent of public funding of the Board’s operations.

35. The Funding Board are recommending a 3.57% increase to both board remuneration for directors (from $14,000 to $14,500) and to Chair fees (from $28,000 to $29,000) and to increase the deputy chair remuneration from 1.25 to 1.50 times director fees (from $17,500 to $21,750). (Appendix C)

36. Any additional remuneration would be absorbed within the current administration fee therefore no additional increase is required.

37. A remuneration increase review was approved in April 2013 by the CCO Strategy Review Subcommittee staggered over a two year period. The Subcommittee also agreed to review the Funding Board remuneration annually.

38. For future remuneration reviews it may be appropriate for the Funding Board remuneration to be considered along with the CCO director reviews.

Consideration

Local Board Views and Implications

39. Decision-making and oversight in respect of regional activities is the responsibility of the Governing Body. This report relates to the funding relationship between the Council, the Funding Board, and the Amenities.

40. Local Board views have not been formally canvassed.

Maori Impact Statement

41. The Amenities have the ability to make positive contributions to Maori Wellbeing, and to deliver on Auckland Plan outcomes relating to effective communication and engagement with Maori and contribute to effective Maori capacity. The Act requires that the membership of the Funding Board must include at least one member who represents the interests of Maori in the Auckland region.

General

42. This report does not trigger the Significance Policy.

Implementation Issues

43. There are no implementation issues associated with this report.

Attachments

No.	Title	Page
a View	Draft Funding Plan 2015-2016	51
b View	Draft Submission 2015	99
c View	Remuneration Letter	101

Signatories

Authors

Josie Meuli - Senior Advisor

Authorisers

John Bishop - Treasurer and Manager CCO Governance & External Partnerships

Kevin Ramsay - Chief Financial Officer

Finance and Performance Committee

19 February 2015

Māori Transformational Activity and Expenditure Report 2014/2015 – Quarter Two

File No.: CP2015/00265

Purpose

1. This report provides an update on the 2014/2015 second quarter activity and expenditure for activities which contribute to achieving the Māori transformational shift including the six Māori priority projects in the Annual Plan.

Executive Summary

2. This is the second report utilising the improved Māori responsiveness activity and expenditure monitoring and reporting framework. The framework utilises agreed criteria to identify and track progress on projects which significantly contribute to the Auckland Plan Māori transformational shift ‘significantly lift Māori social and economic well-being’; as well as tracking general activities that significantly benefit or engage Māori.

3. The framework groups activity and expenditure into five portfolio areas to enable a comprehensive picture of activity and expenditure from across the council group. The five portfolio areas are:

· 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

4. The framework has been embedded in the 2014/15 FY and will inform the monitoring and reporting through the 2015-2025 Long-term Plan years. This report tracks progress on 26 projects and programmes contributing to Māori transformational activity in the 2014/2015 Annual Plan. As the new framework is embedded, other projects which contribute to achieving the Māori transformational shift are being identified.

5. This report notes that an additional project has been included in the Whai Painga – Māori social well-being portfolio. An increase of $16,000 to the development of a signature event is also noted.

6. The revised overall budget is $5.9 million. Year to date (YTD) expenditure for the second quarter was $1,955,576 against a YTD budget of $2,128,192. This indicates a variance $172,616 which is within normal limits.

7. The majority of Māori transformational initiatives commenced in the first quarter of 2014/2015. The remaining initiatives are due for commencement in the third quarter.

8. Council’s Māori Responsiveness Executive Leadership Group, based on the five portfolio areas, will lead the budget refresh process around the Māori transformational shift activities and ensure organisational readiness for delivery on council’s commitments to Māori.

Recommendation

That the Finance and Performance Committee:

a) note the financial and non-financial information on Māori transformational shift activity in quarter two of the 2014/2015 financial year provided in this report.

Discussion

Summary of Second Quarter 2014/15

9. Table one provides a summary of the total opex expenditure for quarter two 2014/2015 across the five portfolios.

Council’s Māori Transformational Shift Activity	December 2014 YTD
OPEX	Actuals	Budget	Variance
Māori Economic Well-being	$173,220	$50,000	($123,220)
Māori Social Well-being	$113,296	$108,934	($4,362)
Māori Cultural Well-being	$1,591,357	$1,809,258	$217,901
Effectiveness for Māori	$67,703	$100,000	$32,297
Treaty Settlement	$10,000	$60,000	$50,000
COUNCIL OPEX TOTAL	$1,955,576	$2,128,192	$172,616

Table1

Summary of Māori Economic Well-being expenditure

10. The expenditure focused on establishing a cross-council Māori Economic Development programme of action including a number of CCOs and council departments. Costs included undertaking a stock take of current initiatives and collaboration with central government through He Kai Aku Ringa, ( the National Māori Economic Development Strategy and Action Plan). The work was undertaken jointly with the Tuia Group; who specialise in this area.

11. As a way to promote the economic opportunities linked to the waka culture in Auckland, council supported a powhiri hosted by Ngāti Whatua Orakei at Okahu Bay in December, welcoming the traditional Polynesian voyaging canoes Hōkūle’a and Hikianalia to Tamāki Makaurau. Celebrations then moved on to Karanga Plaza for a luncheon event hosted by Auckland Tourism, Events and Economic Development (ATEED). ATEED’s contribution will be reported in their second quarterly report to committee

Māori Economic Well-being	December 2014 YTD
OPEX	Update	Annual Budget 2014/15	Actuals
Māori Economic Development Programme	Programme ongoing with further expenditure expected in Q3/4	100,000	173,220
Development of a signature Māori event	Completed consultation with Auckland iwi about festival vision and content. Planning for a waka themed inaugural event in 2015/16 tentatively scheduled for December. Total 2014/15 adjusted from 37k to 53k as reported by ATEED	53,000	0
COUNCIL OPEX TOTAL		153,000	173,220

Table 2

Summary of Māori Cultural Well-being expenditure

12. Quarter two data indicates that the majority of expenditure is in the Māori cultural well-being budget. The largest expenditure was on Mana Whenua Capacity Contracts $650,000 and Marae Development $300,000.

The first round of the southern local boards marae assistance funding has been allocated and totaling $30,500. Three marae received assistance in the first funding round. Second round applications for southern local boards marae assistance opens on 1 February 2015 and closes on 15 March 2015. Results will be reported in quarter three.

Community Development , Arts and Culture will disseminate the funding information to eligible marae to encourage applications and help ensure the funding envelope is spent.

Māori Cultural Well-being	December 2014 YTD
OPEX	Update	Annual Budget 2014/2015	Actuals
Matariki	Expenditure towards community matariki events. Remainder to be spent Q4	141,000	45,542
Waitangi Day	Expenditure towards cost of key Waitangi events across Auckland. Most expense occurring in Q3, reported Q4	177,875	73,601
Ngāti Whatua Orakei Reserves Board	Operational and maintenance costs of the agreed work programme for the reserves	707,421	286,002
Waiomanu Reserve – Co-management	Administrative and operational costs for agreed works	50,738	35,174
Pūkaki Tapu O Poutukeka Historic Reserve, Pukekiwiriki and Associated Lands Co-management	Management Plan completed for Pukekiwiriki. Action plan for works underway, Budget expected to be spent Q3/4 as a result of agreed actions	152,213	0
Pukekiwiriki Reserve – Co-management	Papakura Local Board expects money to be spent in Q3 and Q4	30,478	0
Mana Whenua Capacity Contracts	Contracts all signed. Iwi currently drawing down on funds	950,000	650,000
Papakāinga Development	Interim papakainga grants 2014/15 to be spent in Q4. Funding agreement in anticipation of payment drafted	500,000	0
Marae Development	Successful applicants currently drawing down on funds. Due diligence being undertaken for other potential recipients	740,000	300,000
Kaitiakitanga Projects	Projects yet to identified and confirmed.	100,000	0
Okahu Bay daylighting project^{^[2]}	Expenditure to date has been lower than forecast due to the risks identified by the review of the Ōkahu Bay Daylighting inlet and outlet options and the majority of the work being completed May and June 2013/14	270,000	24,827
Marine Spatial Plan	Expenditure to date includes six round table discussions involving Stakeholder Working Group,(SWG) members (including MW reps) The establishment of a new matauranga Māori Round Table (MMRT). The MMRT has engaged iwi through a series of hui, considering matauranga Maori issues and how MW interests and expectations should be reflected in the SWG process. The MMRT will continue to operate and contribute to the next stages of plan development by the SWG.	50,000	17,452
Māori Heritage Programme	Desktop review of Sites of value in PAUP -completed. Agreement reached with iwi on sites to pilot methodology	770,011	61,000
Southern Local Boards – Marae Assistance Fund	Noted in summary above	144,956	30,584
Hoani Waititi Marae Property maintenance contract	Funding cycle near completion on a work programme agreed between the marae and council	63,548	67,175
COUNCIL OPEX TOTAL		4,848,240	1,591,357

Table 3

Summary of Māori Social Well-being expenditure

13. Many of these programmes are still in the planning stages. The Māori programmes funding managed by CDAC has contributed to a number of Māori focused events including matariki and upcoming Waitangi Day events. A new contract for $90,000 has been secured with Te Ora Manukau to support the design and delivery of CDAC initiatives related to Māori. The overall Māori transformation shift expenditure has been amended to $5.9 million reflecting this change.

Table 4:

Māori Social Well-being expenditure	December 2014 YTD
OPEX	Update	Annual Budget 2014/15	Actuals
Māori programmes community development	Funding this quarter has contributed to CCS Disability Action to deliver the Karanga Maha Noho Marae, Whai Maia Ltd to deliver waste management, and support to the waka powhiri held in December at Okahu Bay	23,588	34,149
Te Ora Manukau (new initiative)	New funding agreement between Te Ora o Manukau and CDAC to deliver programmes targeting Māori communities	90,000	45,000
Māori Sport and Recreation Plan	Met with Māori communities to gauge what are their focus areas of sports and recreation. Accessibility to facilities that cater to traditional Māori sports highlighted. Costs reported in Q3/4	30,000	0
Mataawaka Networks	Working with southern mataawaka networks and local boards to design and establish better ways to engage with mataawaka. Budget expected to be spent in Q3 andQ4	50,000	0
Māori programmes	Expenditure towards community matariki and Waitangi day events. Remainder to be spent Q4	81,180	34,147
COUNCIL OPEX TOTAL		274,768	113,296

Table 4

Summary of Effectiveness for Māori Programme expenditure

14. Work is well underway in the delivery of Ngā Kete Akoranga – Māori Responsiveness Learning and Development programme. Year to date expenditure is $67,703 and includes foundational courses with 513 attendees from across the Auckland Council Family and 400 attendees for department specific courses. Participating departments included Customer Services, Parks and Leisure, Libraries, Research Investigations and Monitoring Unit, People and Capability. Specific Governing Body training was also provided.

15. Digital learning platforms are currently being considered as part of suite of tools to improve organisational uptake of te reo Māori

16. The Māori Responsiveness Planning/ Treaty Audit Response is well underway with the aim to complete several key Treaty Audit priorities by July 2015.

Effectiveness for Māori Programme	December 2014 YTD
OPEX	Update	Annual Budget 2014/2015	Actuals
Māori Responsiveness Learning and Development	Update noted in summary. Cost will be ongoing and Reported Q3/4	100,000	67, 703
Māori Responsiveness Planning/ Treaty Audit Response	Work programme reported in Treaty Audit report included in this agenda. Māori Responsiveness Plans ongoing, four completed and planning underway Departments/CCOs identified to develop plans in 2014/2015 include: Chief Planning Office, ATEED, Infrastructure and Environmental Services and People and Capability. Costs expected to occur in Q3/4	320,000	0
COUNCIL OPEX TOTAL		420,000	67,703

Table 5

Summary of Treaty Settlements Programme expenditure

17. Council has appointed a Treaty Settlements Manager and a Lead Officer for the Maunga Authority. A cross-council project team is also coordinating council’s response to a number of ongoing Crown-Iwi Treaty Settlement negotiations. The costs are attributed to the recruitment process of the newly formed Treaty Settlements position.

Treaty Settlements	December 2014 YTD
OPEX	Update	Annual Budget 2014/15	Actuals
Treaty Settlements Work Programme	Update noted in summary. Cost will be ongoing and Reported Q3/4	220,000	10,000
COUNCIL OPEX TOTAL		220,000	10,000

Table 6

Annual Plan 2014/2015 Māori Priority Project Area update

18. In addition to the projects identified above, the Annual Plan 2014/2015 identifies six Māori priority project areas. These are reported on a quarterly basis. Table seven below provides a summary of expenditure on these six priority areas for the second quarter of 2014/2015.

19. The financial information and commentary in table seven is provided by the project managers’ from the relevant departments and Council Controlled Organisation’s (CCO’s) responsible for each of the projects.

20. ATEED, Auckland Transport and Tāmaki Redevelopment Company all have separate financial management systems to Auckland Council and provide estimates^{^[3]} of expenditure to date.

21. Work is currently underway with Project Managers from the Proposed Auckland Unitary Plan, Stormwater and The Southern Initiative to separate Māori priority projects into their own project code to improve the accuracy of reporting through council’s financial management system. This work is ongoing.

Annual Plan 2014/2015- Māori Priority Project Areas

Māori Priority Project Areas	Update	Budget	Actuals YTD December 2014
Major Event Contributes to Māori Economic Well-being	Reported in table2 of the report.	$53,000	$0
Transport, walking and cycling infrastructure Te Reo signage / narrative, Māori design and public artworks. Contributes to Māori Cultural Well-being	AMETI Cultural monitoring by mana whenua for the Mt Wellington and Panmure Station. Hui with mana whenua for the Reeves Flyover, Pakuranga. Cultural Values Assessment for Mokoia Pa and opportunities for road naming by mana whenua. Dominion Road Ngāti Te Ata, Ngāi Tai ki Tamaki, Ngāti Whātua o Orākei, Ngāti Maru and Ngāti Tamaoho continue to work with the Dominion Road project team on the implementation of the Cultural Landscape concept. Penlink Māori Values Assessments for the proposed Penlink route. East West & Mill Road Consultation on the East-West discussing route options are continuing with mana whenua. Final documentation for Mill Road, including a Cultural Values Assessment from seven mana whenua groups. Roads and Footpaths Cultural impact assessments for Glenvar Ridge Road project that has developed consent conditions from, addressing mana whenua issues. Work continues on cultural monitoring and Māori cultural and ecological significance. Walking and Cycling Engagement with mana whenua, including a walkover of the proposed route and identifying sites of Māori cultural and ecological significance Includes the Glen Innes to Tāmaki Drive shared pathway. City Rail Link CRL design team working with mana whenua to progress the CRL design. A mauri model of assessment is being considered by mana whenua including involvement in tendering processes for CRL. Te reo Māori translations Ongoing, on a project by project basis including events during te wiki o te reo. Ōtāhuhu Bus interchange Detailed design work and narrative provided by manawhenua for the Ōtāhuhu Bus Interchange. Māori Wardens Māori Wardens are contracted provide a customer service role for some train services. Public Transport Engagement with mana whenua on the Newmarket level crossing. RLTP Pre-engagement hui in Manukau and Orewa with mana whenua reviewing the Regional Land Transport Plan. Wynyard Quarter Working with mana whenua to incorporate Māori values in to stormwater management and providing Māori Urban Design opportunities. Māori Engagement Framework A legal review of AT’s Māori Engagement Framework was undertaken to identify recent amendments including Treaty Settlement legislation and changes to the Land Transport Management Act. Mana Whenua Transport Day Transport Day with mana whenua (kaitiaki) that meets one day a month. Projects present to hui participants, gaining input and feedback. Further engagement occurs outside the Transport Day on projects. Resourcing for engagement/specialists is met by the specific projects.	$1,000,000	$566,900
The Southern Initiative (TSI) Scope a project to address Māori interests. Contributes to Māori Cultural and Social Well-being	Ngā Mana Whenua Diorama Project In the current financial year specific budget has been allocated for Māori historic interpretation signage throughout the TSI region and mana whenua rohe. The TSI also plays an essential facilitation role in the delivery of Māori transformational shifts.	$20,000	$20,000
Proposed Auckland Unitary Plan Funding of mana whenua engagement, use of iwi management plans, sites of significance and other Māori provisions. Contributes towards Māori Cultural Well-being	Progress to date Evidence presented to the Auckland Unitary Plan Independent Hearings Panel in support of the provisions contained within the Regional Policy Statement chapter of the PAUP. Reprioritisation Due to the scale and complexity of the issues, it is anticipated that additional costs (above the estimated $150,000) will be necessary to respond to the submissions on remaining provisions of the PAUP that relate to the Treaty of Waitangi .	$920,000^{^[4]} See footnote	$211,000 See footnote
		$150,000	$150,000
		150k represents the estimated cost contributing to Māori Cultural Well-being
Tāmaki Transformation Programme^{^[5]} Opportunities for affordable housing, marae and associated education and cultural facilities. Contributes to Māori Cultural and Social Well-being	Ruapōtaka Marae Capacity Building Project Scope priority needs in partnership with marae completed. Programme includes training for its trustees, supporting back office systems, training for funding application writing, governance, and policy writing. Ruapōtaka Master Plan and Feasibility Study Engagement with Marae Komiti, Architect engaged, and porta-coms relocated to marae Final master plan marae design and costings by June 2015. Local Board led process. Cultural Mapping Working with iwi (Ngai Tai, Ngāti Pāoa, Ngāti Whatua Orakei) to protect cultural landmarks. Digital map development completed, initial content developed in partnership with 3 mana whenua iwi. Expenditure of $35k was reported in Q1, this was incorrect. Actuals of 20k against $50 k is a more accurate figure at this time. Financial Literacy Training Massey University (targeting Māori and Pacific). Seven coaches trained and qualified including three Māori. Programme developed to enable community members to deliver information sessions to Tamaki families throughout 2015. Implement affordable housing strategy Confirmed actions with key partners Deliver identified actions by June 2015. Key partners include Community Housing Aotearoa, Ngā Iwi Katoa, and Te Matapihi (sector body representing Māori housing interests). TRC has also been in discussion with IMSB for strategic alignment Māori housing. Expenditure of $100k was reported in Q1, this was incorrect. Actuals of 5k against $200 k budget is a more accurate figure at this time.	$420,000	$45,000
Stormwater Investment Incorporate Mātauranga Māori Contributes towards Māori Cultural Well-being	Okahu Bay Daylighting Expenditure to date has been lower than forecast due to the risks identified by the review and the majority of the work being completed May and June 2013/14	$270,000	$28,969

Table 7

Consideration

Local Board Views and Implications

22. 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.

Maori Impact Statement

23. The updated reporting and monitoring framework was developed in consultation with the Independent Māori Statutory Board 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’s Māori responsiveness. The 2014-15 Annual Plan Māori Transformational shift budgets will make a positive contribution to Māori and Auckland as a whole.

Implementation

24. The monitoring and reporting framework is being piloted through 2014/2015 for use in the LTP 2015-2025 years. Work will continue to improve the level and quality of financial and non-financial data captured by the framework, including with council’s substantive CCOs to ensure that the portfolio management system captures data from the whole council group

25. Council’s chief executive is leading the Māori Responsiveness Executive Leadership Group to support the Māori transformational shift LTP process and ensure delivery on council’s commitments to Māori. Tier two programme leads for each of the five portfolio areas will lead the 2014/15 FY budget refresh process and ensure organisational readiness for delivery on Māori transformational shift LTP commitments once final decisions are made.

Attachments

There are no attachments for this report.

Signatories

Authors

Shane Cook - Kaihautu Whakatuturu Puni - Senior Maori Effectiveness Advisor

Authorisers

Johnnie Freeland - Paearahi Matua - Manager

Grant Taylor - Governance Director

Kevin Ramsay - Chief Financial Officer

Finance and Performance Committee

19 February 2015

Te Tirirti o Waitangi Audit response work programme 2014/15 update

File No.: CP2015/00273

Purpose

1. This report provides a progress update on the 2014/2015 work programme to deliver on priority elements in the third and final year of council’s Treaty Audit response work programme.

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 a three year work programme of actions in response to the Treaty Audit recommendations. 2014/2015 is the third and final year of this work programme. This report provides a progress update for the second quarter, ending December 2014, on the priority actions for 2014/2015, as approved by the Finance and Performance Committee on 24 September 2014 (FIN/2014/55).

Recommendation

That the Finance and Performance Committee:

a) Note the progress update on the Treaty Audit response work programme for the 2014/2015 priority actions.

Discussion

4. The table below provides a progress update on the Treaty Audit response work programme 2014/2015 priority actions, as approved by the Finance and Performance Committee on 24 September 2014.

Te Tiriti o Waitangi Audit response work programme 2014/15		Te Tiriti o Waitangi Audit Recommendation	Progress Update
Knowledge of Obligations
1	Evaluation of Māori responsiveness plan pilots	· Increase awareness and set out principles, rules and guidelines to direct council and CCO actions.	· The evaluation of the Māori Responsiveness Plan pilots will be completed early March 2015. The evaluation included the Māori responsiveness plans from Libraries and Information, Parks, Sport and Recreation, Coastal, Land, Air and Water Unit and Auckland Council Properties Limited.
Policies
2	Te Reo Māori 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.	· The framework is being reviewed by Communication and Engagement. This review is expected to be completed mid February 2015. · The framework will be presented to the Local Boards, Mana Whenua, CCOs and council departments to discuss the application of the framework in March-April. · A final report for adopting the Te Reo Māori framework will be presented to the Governing Body in June.
3	Māori relationships framework	· Development of draft Māori Relationships Framework.	· ELT approved the revised framework and process to develop relationship agreements with Mana Whenua on 5 December 2014. · Letters were sent to Iwi chairs in the last week of December advising of council’s desire to enter into relationship agreements. · Relationship meetings to begin these discussions are being arranged now with the first anticipated at the end February 2015.
4	Development of Nga Taonga Tuku Iho framework	· Develop management of Taonga policy.	· Due to start in March 2015.
5	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 Māori partnership policy · Develop management of memoranda of understanding policy · Development of management of court order agreements policy	· Engagement with mana whenua relating to the framework will be incorporated into the discussions with mana whenua relating to formalising relationship agreements due for commencement in March. · Operational guidance material on legal frameworks, delegations, and insurance, health and safety responsibilities for co-governance entities has been developed. · The guidance material will be tested with targeted departments and CCOs in March/April, prior to wider circulation in May.
6	Significance and Engagement policy	· Development of engagement policy · Review significance policy · Provide clarity over what constitutes a significant decision and how this is determined.	· The Significance and Engagement Policy was adopted by the Governing Body at its meeting on 27 November 2014.
7	Development/update of hearings policy	· Update of Hearings Policy.	· Project has commenced on the Hearings Policy with Democracy Services. To be completed by June 2015.
Processes, systems and data
8	Māori Heritage Programme	· Wāhi tapu information management.	· On-going work on quality assurance of the Sites of Māori value, as identified in the Cultural Heritage Inventory with the Culture and Heritage Team.
9	Tāmaki 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.	· Resource provided to support a Mana Whenua working group to facilitate the establishment of a forum. · A paper has been developed by mana whenua and will be presented to the Kaitiaki Forum hosted by Watercare. · Council staff will provide feedback on the paper once it has been tabled.
10	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.	· Development of a Mātauranga Māori Framework is under way and will be completed at the end of February 2015. · The framework will inform the subsequent design, development and deployment of the pataka. Completion expected by June 2015.
11	Māori responsiveness planning (three new plans completed in 2014/15)	· Embed Māori responsiveness as business as usual, promoting effective compliance covering both Māori statutory requirements and Auckland Council commitments and other legal requirements.+	· Two units – Research Investigation Monitoring Unit and Environmental Strategy Unit have started developing Māori responsiveness plans. · People and Capability, ATEED and Communication and Engagement are at early stages of getting plans approved. · Community Development Arts and Culture and the whole Chief Planning Office have indicated a willingness to develop Māori responsiveness plan this year. · Other high priority departments under consideration. Dependent on resource.

12	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.	· Māori Cultural Heritage Hui in December 2014 considered methodology relating to sites of value and sites of significance.. · Completed quality assurance of the Sites of Māori value, as identified in the Cultural Heritage Inventory. · Mana whenua have been engaged on the wider Māori Cultural Heritage Project focused on improving identification, mapping and protection of sites of importance to Māori.
13	Māori friendly recruitment process		· Recruitment process.	· Completed work on whānau interview process. · People and Capability have begun project planning work on the recruitment process.
Capacity
14	Mana Whenua Capacity Building		· 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.	· Implemented capacity funding agreements. Initiated planning with Mana Whenua regarding capacity needs.
	Mataawaka communication and education programme			· Due to start in March 2015.
Training and awareness
15		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.	· The evaluation has commenced and is due to be finished by March 2015. Work is ongoing to incorporate staff participation KPIs through department/CCO Māori responsiveness plans.
Communication
16		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.	· Due to start in February 2015.
Monitoring
17		Revised monitoring and reporting framework (adopted by 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.	· The Financial, Performance and Activity monitoring framework has been developed and currently being trialed. · Developing framework for long term Māori outcomes. · The first quarterly report has been tabled.

5. The 2014/2015 work programme builds on work already completed in the previous two years. 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 wider Effectiveness for Māori portfolio of work, which is focused on building internal capacity and capability across council.

Consideration

Local Board Views and Implications

6. 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 programmes. Te Waka Angamua relationship managers will work with local boards to determine how best to address this.

Māori Impact Statement

7. This report provides a progress update on the Treaty Audit response work programme for the 2014/2015 priority actions. The Treaty Audit response work programme forms part of a wider programme of work intended to lift council’s overall responsiveness to Māori in contributing to Māori well-being.

Implementation Issues

8. The Treaty Audit response work programme is an important part of council’s overall Māori responsiveness approach. Council’s Māori Responsiveness Executive Leadership Group will ensure any implementation issues are resolved and are part of the overall top-down approach to Māori responsiveness.

Attachments

There are no attachments for this report.

Signatories

Authors

Lillian Tahuri - Paeurungi Whakatuturu Puni, Maori Effectiveness Manager

Authorisers

Johnnie Freeland - Paearahi Matua - Manager

Grant Taylor - Governance Director

Kevin Ramsay - Chief Financial Officer

Finance and Performance Committee

19 February 2015

Auckland Council performance report for the period 1 July 2014 to 31 December 2014

File No.: CP2015/00220

Purpose

1. This report provides an overview of the Auckland Council parent performance results for the period 1 July 2014 to 31 December 2014.

Executive Summary

2. This report focuses on the highlights and achievements of the Auckland Council parent in the key areas to achieve organisational objectives.

3. The financial overview provides an indication of how the organisation is performing against the budget and associated financial risks.

Recommendation/s

That the Finance and Performance Committee:

a) Note the performance report for the six months ended 31 December 2014, highlighting:

i. Net operating surplus of $695 million, which is $38 million favourable compared to budget.

ii. Capital expenditure of $216 million, which is $28 million lower than the year-to-date budget.

b) Note the following highlights and achievements:

i. Auckland Libraries’ eCollections campaign started in December and, in its first week, generated 58% increase in usage of eBooks and 70% of eAudiobooks versus same week in 2013. For eMagazines, the one week downloads surpassed the weekly average (September - November) by 150%.

ii. The new Te Atatu Library and Community Centre opened on 15 November with a dawn blessing ceremony, civic opening and celebrations and activities for the community. The library features an expanded floor plan including more space for children and teens, and a high ceiling. Expansive glass windows provide library users with an outlook of the park, while also letting in natural light.

iii. Signage signaling that Regional Parks are smoke free is in place. The roll out of signage across Council’s local parks network is underway. New and renewed signage includes the smoke free logo and associated information. Stickers containing this information are being placed on existing signage commencing with high profile locations.

iv. A blessing and formal opening of the new playground at Myers Park took place on 26 November 2014, nearly 100 years after the park was first opened. Waitematā Local Board members, City Centre Advisory Board members and council staff attended the blessing, after which the playground was thoroughly tested by children from the neighbouring Kadimah School and Myers Kindergarten. The remaining stage one developments will be completed before the formal centenary celebrations next February. They include upgrade of lighting, new CCTV, native planting, way finding and interpretation signage and entrance upgrades at Queen Street and Poynton Terrace.

v. Significant events in December included: celebrations of centenaries for both the Tepid Baths and Parnell Pools; the 75th anniversary celebrations of the Battle of the River Plate (including a Royal NZ Navy march down Queen Street) and a wreath laying at Achilles Point.

vi. Auckland Heritage Festival 2014 finished 12 October. It was a successful event with approximately 1,500 – 2,000 visitors through Shed 10 on open day. On 7 December, Te Waka Angamua, Ngati Whatua o Orakei, ATEED and the Events team provided a welcome event for the arrival of the Pacific Voyaging Society waka. A powhiri was held at Okahu Bay and a civic reception in the Viaduct.

vii. Credit rating agencies Standard & Poors and Moody's completed their annual review and confirmed Councils AA and Aa2 rating.

viii. The new Bledisloe Lane service centre opened to positive feedback from customers. Observations suggest that the new location benefits from much higher foot traffic along the lane resulting in higher customer numbers than Greys Avenue, particularly incidental customers who decide on a whim to come and engage with us. Customers are enjoying the self-service payment and information kiosks as well as the staffs’ ability to move around the centre offering a warm welcome and smooth hand-offs between the services. The reception function for Bledisloe House, offering a professional welcome for visitors and couriers, has also been well received.

Discussion

4. This report provides an overview of the Auckland Council parent performance results for the period 1 July 2014 to 31 December 2014.

5. This report presented here is for the Auckland Council parent, not the group. A separate report of the group financial results will be presented to the Finance and Performance Committee at the March 2015 meeting.

Consideration

Local Board Views and Implications

6. Local Boards receive their own reporting for their respective areas.

Maori Impact Statement

7. The report details some high level activities delivered in the second quarter 2014/2015, of which there are several initiatives with positive impacts on, or for, Maori. While this is not a complete list, key activities with impacts on and for Maori include:

8. Makaurau Marae whakawhanaungatanga day was a success with 50 council officers participating. The day was an opportunity for council to facilitate the building of relationships between council and mana whenua and increasing cultural competencies amongst staff.

9. Approval was received to allow Treaty settlement land, Maori land and Maori special purpose zones land to be designated as Special Housing Areas outside of the Rural Urban Boundary.

10. Te Kauhanganui - Auckland Libraries' Māori Responsiveness Plan was launched on 29 October 2014. The plan maps the areas of action to progress over the next three years which lay the foundation for strengthening relationships with Māori, encouraging Māori participation in all aspects of Auckland Libraries and promoting te reo Māori. This plan is a key priority under the focus area Customer and community connection in Te Kauroa - Auckland Libraries 10 year strategic plan.

11. The first ever release of takahē was observed into the wild on the Auckland mainland, at Tāwharanui Regional Park. This work began in January 2013 and was built on the success of the open sanctuary and its pest-free status. Many partners and supporters provided input from DOC’s Takahē Recovery Project team near Te Anau to Tāwharanui Open Sanctuary Society Inc (TOSSI) and the community members who have volunteered and fundraised. This release also highlights an important role Parks play with iwi. Takahē are taonga (treasures) and the Tāwharanui birds were entrusted into the care of mana whenua, Ngati Manuhiri, by South Island tribe Ngāi Tahu in a moving powhiri at the park.

12. On 7 December, Te Waka Angamua, Ngati Whatua o Orakei, ATEED and the Events team provided a welcome event for the arrival of the Pacific Voyaging Society waka. A powhiri was held at Okahu Bay and a civic reception in the Viaduct.

13. A celebration of communities making the most of waste was held with our community partners at Papatuanuku Marae in Mangere on 19 November 2014. It was attended by 110 people with the Mayor in attendance. Ten organisations presented the work they had done over the last year on using waste as a resource and how it brought their communities together and the impact of that work.

General

14. There is no further general information.

Implementation Issues

15. There are no financial or resourcing implications arising from receipt of this report.

16. Quarterly reporting on performance is not a legal requirement and there are no legislative implications from the receipt of this request.

Attachments

No.	Title	Page
a View	Performance report December 2014	123

Signatories

Authors

Jenny Livschitz - Manager Corporate Performance and Reporting

Authorisers

Bruce Gardiner - Acting Manager Finance

Kevin Ramsay - Chief Financial Officer

[1] The total funding levy for 2015-16 is $15,148,400, made up of $14,833,400 grant applications from the ten amenities and $315,000 Funding Board administration fee

[2] The overall project budget is $1,543,500 – the amount of $270,000 is what has been allocated for the daylighting component of the project.

[3] Project codes are in the process of being set up for all Māori Priority Projects that are reported through the Auckland Council parent financial system. Council Controlled Organisation’s and Tamaki Redevelopment Company have separate accounting systems therefore figures provided are based on estimates from Project Managers responsible for the projects being reported.

[4] The budget for this work sits within the wider budget for the Proposed Auckland Unitary Plan (PAUP). The estimated cost relating to engagement with Mana Whenua and responding to submissions on the provisions in the PAUP that relate to the Treaty of Waitangi is $150,000. This includes the Sites of Significance to Mana Whenua work programme which is being led by the Heritage Team (770k).

[5] In terms of spend to date for Quarter 2, is that most expenditure will occur over next 6 months. The second quarter was spent working with local groups and other stakeholders to design the project, cost it up, and develop the outcomes, measurements and roles.

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
	Deputy Mayor Penny Hulse
	Cr Denise Krum
	Cr Mike Lee

Authors	Crispian Franklin - Democracy Advisor
Authorisers	Kevin Ramsay - Chief Financial Officer