Finance and Performance Committee

OPEN MINUTES

Minutes of a meeting of the Finance and Performance Committee held in the Reception Lounge, Auckland Town Hall, 301-305 Queen Street, Auckland on Thursday, 19 November 2015 at 9.35am.

present

Chairperson	Cr Penny Webster
Deputy Chairperson	Cr Ross Clow
Members	Cr Anae Arthur Anae
	Cr Cameron Brewer
	Mayor Len Brown, JP	From 10.16am, Item 9
	Cr Dr Cathy Casey
	Cr Bill Cashmore
	Cr Linda Cooper, JP
	Cr Chris Darby
	Cr Alf Filipaina	From 9.44am, Item 9
	Deputy Mayor Penny Hulse	From 9.42am, Item 9
	Cr Denise Krum	Until 3.02pm, Item 17
	Cr Mike Lee	From 9.49am, Item 9
	Cr Calum Penrose
	Cr Dick Quax
	Cr Sharon Stewart, QSM
	Member David Taipari	From 9.42am, Item 9 Until 1.30pm, Item 15
	Cr Sir John Walker, KNZM, CBE	From 9.55am, Item 9
	Cr Wayne Walker
	Cr John Watson	From 9.50am, Item 9
	Cr George Wood, CNZM

ABSENT

Cr Christine Fletcher

Member John Tamihere

Finance and Performance Committee 19 November 2015

1          Apologies

Resolution number FIN/2015/115

MOVED by Chairperson MP Webster, seconded by Cr C Darby:

That the Finance and Performance Committee:

a) accept the apology from Cr CE Fletcher for absence and the apologies from Mayor LCM Brown and Member DE Taipari for lateness.

CARRIED

2          Declaration of Interest

There were no declarations of interest.

3          Confirmation of Minutes

Resolution number FIN/2015/116

MOVED by Cr LA Cooper, seconded by Cr CM Penrose:

That the Finance and Performance Committee:

a) confirm the ordinary minutes of its meeting held on Wednesday, 28 October 2015 as a true and correct record.

CARRIED

4 Petitions

There were no petitions.

5 Public Input

There was no public input.

6 Local Board Input

There was no local board input.

7 Extraordinary Business

There was no extraordinary business.

8 Notices of Motion

There were no notices of motion.

9	Auckland Council Performance Report for the period 1 July 2015 to 30 September 2015
	Member DE Taipari entered the meeting at 9.42am. Deputy Mayor PA Hulse entered the meeting at 9.42am. Cr AM Filipaina entered the meeting at 9.44am. Cr ME Lee entered the meeting at 9.49am. Cr J Watson entered the meeting at 9.50am. Cr JG Walker entered the meeting at 9.55am. Cr ME Lee left the meeting at 10.10am. Mayor LCM Brown entered the meeting at 10.16am. Cr ME Lee returned to the meeting at 10.29am.
	A PowerPoint presentation was provided. A copy has been placed on the official minutes and is available on the Auckland Council website as a minutes attachment.
	Resolution number FIN/2015/117 MOVED by Chairperson MP Webster, seconded by Deputy Chairperson R Clow: That the Finance and Performance Committee: a)   receive the Auckland Council Performance report for the period 1 July 2015 to 30 September 2015. CARRIED
	Attachments a     19 November 2015 - Finance and Performance Committee - Item 9 - Auckland Council Performance Report PowerPoint presentation

10	Auckland Council Group first quarter financial results to 30 September 2015
	Cr WD Walker left the meeting at 10.47am. Cr WD Walker returned to the meeting at 10.54am. Cr CM Penrose left the meeting at 11.03am.
	A PowerPoint presentation was provided. A copy has been placed on the official minutes and is available on the Auckland Council website as a minutes attachment.
	Resolution number FIN/2015/118 MOVED by Chairperson MP Webster, seconded by Deputy Chairperson R Clow: That the Finance and Performance Committee: a)      receive the Auckland Council Group first quarter financial results to 30 September 2015 report. CARRIED
	Attachments a     19 November 2015 - Finance and Performance Committee - Item 10 - Auckland Council Group first quarter financial results PowerPoint presentation

11	Quarter one Māori transformational shift and co-governance activities and expenditure
	Note:   Clause c) was incorporated with the agreement of the meeting.
	Deputy Chairperson R Clow left the meeting at 11.04am. Cr CM Penrose returned to the meeting at 11.06am. Deputy Mayor PA Hulse left the meeting at 11.11am.
	Resolution number FIN/2015/119 MOVED by Member DE Taipari, seconded by Cr AM Filipaina: That the Finance and Performance Committee: a)      receive the quarter one Māori transformational shift and co-governance activities and expenditure report. b)      note that a consolidated Te Toa Takitini portfolio report, as outlined in paragraph seven of the agenda report, will be provided for quarter two. c)      request that future reporting on Māori transformational shift activities (including future consolidated Te Toa Takitini reporting) include, as far as can be accurately captured, the number of persons who have been affected by or participated in activities, and the benefits of the activity based on the user-feedback. CARRIED

12

Implementing the New Food Act for Environmental Health (Food Premises)

Resolution number FIN/2015/120 MOVED by Cr CM Penrose, seconded by Cr W Cashmore: That the Finance and Performance Committee: a)      adopt the statement of proposal to fix fees to recover the costs of the Council’s functions under the Food Act 2014. b)      agree the process for consultation as set out in the report, noting that staff will report back on submissions and the proposed fees to the Regulatory and Bylaws Committee in 2016. c)      note that the December 2015 meeting of the Regulatory and Bylaws Committee will appoint hearings panel members to consider the submissions. CARRIED

13	Reports Pending Status Update
	Deputy Chairperson R Clow returned to the meeting at 11.22am. Deputy Mayor PA Hulse returned to the meeting at 11.23am.
	Resolution number FIN/2015/121 MOVED by Chairperson MP Webster, seconded by Cr LA Cooper: That the Finance and Performance Committee: a)      receive the Reports Pending Status Update report. CARRIED

14	Annual Plan 2016/17 - Update
	Member DE Taipari left the meeting at 11.24am.
	Resolution number FIN/2015/122 MOVED by Chairperson MP Webster, seconded by Cr W Cashmore: That the Finance and Performance Committee: a)      note the contents of this Annual Plan 2016/17 Update report. CARRIED

15

Alternative Sources of Financing - Feedback

Two PowerPoint presentations were provided. Copies have been placed on the official minutes and are available on the Auckland Council website as minutes attachments.

Cr JG Walker left the meeting at 11.29am.

Cr JG Walker returned to the meeting at 11.35am.

Member DE Taipari returned to the meeting at 11.35am.

Cr CM Penrose left the meeting at 11.49am.

Cr CM Penrose returned to the meeting at 11.55am.

Cr AJ Anae left the meeting at 12.11pm.

Mayor LCM Brown left the meeting at 12.18pm.

Cr AM Filipaina left the meeting at 12.23pm.

Member DE Taipari left the meeting at 12.28pm.

Mayor LCM Brown returned to the meeting at 12.34pm.

Cr AM Filipaina returned to the meeting at 12.34pm.

Member DE Taipari returned to the meeting at 12.35pm.

MOVED by Chairperson MP Webster, seconded by Deputy Chairperson R Clow:

That the Finance and Performance Committee:

a)      receive the Cameron Partners and Ernst & Young reports.

b)      agree to hold a workshop in February 2016 to consider preferred direction on specific options provided in the reports from Cameron Partners and Ernst & Young.

c)      note the activity already underway within areas such as fleet management, strategic procurement and shared services to seek the further operational efficiency gains required to meet savings targets in the 2015-2025 long-term plan and endorse that this activity be extended to other areas where the report findings from Cameron Partners and Ernst & Young suggest further group operating efficiency opportunities are available.

The meeting was adjourned at 12.35pm.

The meeting reconvened at 12.41pm, Deputy Mayor PA Hulse was not present.

Deputy Mayor PA Hulse returned to the meeting at 12.53pm.

Cr ME Lee left the meeting at 1.28pm.

The meeting was adjourned at 1.30pm.

The meeting reconvened at 2.03pm. Crs AJ Anae and ME Lee and Member DE Taipari were not present.

Cr ME Lee returned to the meeting at 2.18pm.

Mayor LCM Brown left the meeting at 2.27pm.

Cr AJ Anae returned to the meeting at 2.29pm.

Mayor LCM Brown returned to the meeting at 2.50pm.

Resolution number FIN/2015/123

MOVED by Cr D Quax, seconded by Cr LA Cooper:

That the Finance and Performance Committee:

a) agree that, pursuant to Standing Order 1.6.1, the motion under debate now be put to a vote.

CARRIED

Note:   Pursuant to Standing Order 1.8.6, Crs C Casey, C Darby and WD Walker requested that their dissenting votes be recorded.

Note:   The motion was substituted with the agreement of the meeting. The motion was             taken in parts.

Resolution number FIN/2015/124

MOVED by Chairperson MP Webster, seconded by Deputy Chairperson R Clow:

That the Finance and Performance Committee:

a)      receive the Cameron Partners and Ernst & Young reports.

b)      agree to hold a workshop in February 2016 to consider preferred direction on specific options provided in the reports from Cameron Partners and Ernst & Young.

c)      note the activity already underway within areas such as fleet management, strategic procurement and shared services to seek the further operational efficiency gains required to meet savings targets in the 2015-2025 long-term plan and endorse that this activity be extended to other areas where the report findings from Cameron Partners and Ernst & Young suggest further group operating efficiency opportunities are available.

A division was called for, voting on which was as follows:

For Cr AJ Anae Cr C Brewer Mayor LCM Brown Cr W Cashmore Deputy Chairperson R Clow Cr LA Cooper Cr C Darby Cr AM Filipaina Deputy Mayor PA Hulse Cr DA Krum Cr ME Lee Cr CM Penrose Cr D Quax Cr SL Stewart Cr JG Walker Cr WD Walker Cr J Watson Chairperson MP Webster Cr GS Wood

Against Cr C Casey

Abstained

The motion was declared carried by 19 votes to 1.

CARRIED

Resolution number FIN/2015/125

MOVED by Chairperson MP Webster, seconded by Deputy Chairperson R Clow:

That the Finance and Performance Committee:

d) request the Chief Executive to direct staff to further explore the effect of all options for Council’s share in Auckland International Airport Ltd, as outlined by the Cameron Partners (p66) and Ernst & Young (p36) reports.

e) agree that, upon receiving the Future Port Study, to further explore all options relating to the Ports of Auckland, as set out in the Cameron Partners (p72) and Ernst & Young (p45) reports.

f) request the Chief Executive to direct staff to further explore potential partnerships between Auckland Council and the private sector to develop and intensify its car parks as laid out in option 3d of the Ernst & Young report (p80), given the significant increase in market value that would occur, noting the Cameron Partners’ prediction that divesting these assets entirely offers little positive benefit (p82).

g) request the Chief Executive to direct staff to undertake further work to identify and minimise duplicated common back-office functions and operational costs, including HR, communications, and ICT across Auckland Council Group by ten per cent to save $15.2m annually as estimated in the Ernst & Young report in option 3a (p65).

h) request the Chief Executive to direct staff to undertake further work to review Auckland Council Group’s commercial buildings, noting that aligning CCOs with Council parent’s accommodation strategy and reducing our footprint cost is likely to achieve a 20 per cent saving within five to ten years, or as much as $9m per annum in total occupancy costs, as estimated in option 3c of the Ernst & Young report (p75).

A division was called for, voting on which was as follows:

For Cr AJ Anae Cr C Brewer Mayor LCM Brown Cr W Cashmore Deputy Chairperson R Clow Cr LA Cooper Cr DA Krum Cr CM Penrose Cr D Quax Cr SL Stewart Cr JG Walker Chairperson MP Webster Cr GS Wood

Against Cr C Casey Cr C Darby Cr AM Filipaina Deputy Mayor PA Hulse Cr ME Lee Cr WD Walker Cr J Watson

Abstained

The motion was declared carried by 13 votes to 7.

CARRIED

Attachments

a     19 November 2015 - Finance and Performance Committee - Item 15 - Alternative Sources of Financing Feedback - Ernst & Young PowerPoint presentation

b     19 November 2015 - Finance and Performance Committee - Item 15 - Alternative Sources of Financing Feedback - Cameron Partners PowerPoint presentation

16        Consideration of Extraordinary Items

There was no consideration of extraordinary items.

17        Procedural motion to exclude the public

Resolution number FIN/2015/126

MOVED by Chairperson MP Webster, seconded by Cr AJ Anae:

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       Restoration of St James Theatre

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)(h) - The withholding of the information is necessary to enable the local authority to carry out, without prejudice or disadvantage, commercial activities. In particular, the report contains commercially sensitive information.	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.

The text of these resolutions is made available to the public who are present at the meeting and form part of the minutes of the meeting.

CARRIED

Cr DA Krum left the meeting at 3.02pm.

3.02pm            The public was excluded.

Resolutions in relation to the confidential items are recorded in the confidential section of these minutes and are not publicly available.

3.30pm            The public was re-admitted.

restatementS

It was resolved while the public was excluded:

C1

Restoration of St James Theatre

Resolution number FIN/2015/127

MOVED by Deputy Chairperson R Clow, seconded by Cr C Casey:

That the Finance and Performance Committee:

a)      agree in principle to support a contribution of up to $15 million from the Built Heritage Acquisition Fund towards the restoration of the St James Theatre alongside contributions from the owner, Crown, philanthropic organisations and other potential funders.

b)      agree that prior to the release of any funding, the Chief Executive be satisfied with the following matters:

i)        the proposed basis, timing, purpose and quantum of funding

ii)       the appropriate legal structure for the ownership and control of the theatre given the scale of the proposed public investment and the acceptability to other potential public sector and philanthropic funders

iii)      the proposed operational management that ensures continued public access to the theatre

iv)      the proposed quality assurance and risk management measures to ensure the effectiveness of any council investment.

c)      agree that the release of any council funding be approved by the Finance and Performance Committee.

d)      agree that the decision of the committee, but not the report or attachments, be restated in the open minutes.

A division was called for, voting on which was as follows:

For Cr AJ Anae Mayor LCM Brown Cr C Casey Cr W Cashmore Deputy Chairperson R Clow Cr C Darby Cr AM Filipaina Deputy Mayor PA Hulse Cr ME Lee Cr D Quax Cr SL Stewart Cr JG Walker Cr WD Walker Cr J Watson Chairperson MP Webster Cr GS Wood

Against Cr C Brewer Cr LA Cooper Cr CM Penrose

Abstained

The motion was declared carried by 16 votes to 3.

3.30pm                                               The Chairperson thanked Members for their attendance and attention to business and declared the meeting closed.

CONFIRMED AS A TRUE AND CORRECT RECORD AT A MEETING OF THE Finance and Performance Committee HELD ON

DATE:.........................................................................

CHAIRPERSON:........................................................