I hereby give notice that an ordinary meeting of the Finance and Performance Committee will be held on:
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Date:
Time:
Meeting Room:
Venue:
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Thursday, 10
December 2015
9.30am
Reception
Lounge
Auckland Town Hall
301-305 Queen Street
Auckland
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Finance and Performance Committee
OPEN AGENDA
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MEMBERSHIP
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Chairperson
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Cr Penny Webster
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Deputy Chairperson
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Cr Ross Clow
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Members
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Cr Anae Arthur Anae
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Cr Calum Penrose
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Cr Cameron Brewer
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Cr Dick Quax
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Mayor Len Brown, JP
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Cr Sharon Stewart, QSM
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Cr Dr Cathy Casey
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Member David Taipari
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Cr Bill Cashmore
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Member John Tamihere
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Cr Linda Cooper, JP
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Cr Sir John Walker, KNZM, CBE
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Cr Chris Darby
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Cr Wayne Walker
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Cr Alf Filipaina
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Cr John Watson
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Cr Hon Christine Fletcher, QSO
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Cr George Wood, CNZM
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Deputy Mayor Penny Hulse
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Cr Denise Krum
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Cr Mike Lee
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(Quorum 11 members)
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Mike Giddey
Democracy Advisor
3 December 2015
Contact Telephone: (09) 890 8143
Email: mike.giddey@aucklandcouncil.govt.nz
Website: www.aucklandcouncil.govt.nz
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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
·
Development of the
2016/17 Annual Plan and amendments to the LTP including:
-
Local Board
agreements
-
Financial Policy
related to AP (recommendation to the Governing Body)
-
Setting of rates
(recommendation to the Governing Body)
-
Preparation of the
consultation document and supporting information for the LTP and Annual Plan
(recommendation to the Governing Body)
·
Financial policy
outside the LTP and AP
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 (section 2)
(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.
Independent Māori Statutory Board
·
Members of the Independent Māori
Statutory Board who are appointed members of the committee remain.
·
Independent Māori Statutory Board
members and staff remain if this is necessary in order for them to perform
their role.
Staff
·
All staff supporting the meeting (administrative, senior
management) remain.
·
Other 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.
Council Controlled Organisations
·
Representatives of a Council Controlled Organisation can remain
only if required to for discussion of a matter relevant to the Council Controlled
Organisation.
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Finance and
Performance Committee
10 December
2015
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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
6 Local Board Input 7
7 Extraordinary Business 8
8 Notices of Motion 8
9 Disposal recommendation report 9
10 IS Transformation Programme and NewCore Project Update 15
11 Reports Pending Status Update 19
12 Tenders and Procurement Forward Work Programme to October
2016 27
13 Community Leases Update 31
14 Annual Plan 2016/17 - Mayoral Proposal
This report will be tabled at the meeting.
15 Consideration of Extraordinary Items
PUBLIC EXCLUDED
16 Procedural Motion to Exclude the Public 43
C1 Civic Administration Building
This report was not available when the agenda was compiled and will
be distributed in an addendum agenda.
An apology from
Cr WD Walker has 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
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That the Finance and Performance Committee:
a)
confirm the ordinary minutes of its meeting
held on Thursday, 19 November 2015, including the
confidential section, as a true and correct record.
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4 Petitions
At the close of
the agenda no requests to present petitions had been received.
5 Public Input
Standing Order
7.7 provides for Public Input. Applications to speak must be made to the
Democracy Advisor, in writing, no later than one (1) clear working day
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.
At the close of
the agenda no requests for public input had been received.
6 Local Board Input
Standing Order
6.2 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 one (1) day’s 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 6.1 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.
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Finance and
Performance Committee
10 December
2015
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Disposal
recommendation report
File No.: CP2015/25292
Purpose
1. This report seeks approval to
dispose of 11 Scott Road, Hobsonville to the Ministry of Education.
Executive
Summary
2. Panuku Development Auckland
(Panuku) is required to identify properties from within council’s portfolio
that may be suitable for potential sale to a combined value of $40 million by
30 June 2016. 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. 11 Scott Road,
Hobsonville is a four hectare site that the Ministry of Education seek to
acquire for a school. A strip of land from the northern part of this site is
proposed to be used by Auckland Transport for roading purposes. The Ministry
of Education can compulsorily acquire this property under section 50 of the
Public Works Act. Due to this, Panuku has not gone through the standard rationalisation process for this property. Panuku
Development Auckland support disposing of this site to the Ministry of
Education for use as a school site.
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Recommendation/s
That the Finance and
Performance Committee approve:
a) subject to the
satisfactory conclusion of any required statutory processes, the disposal of
the land at 11 Scott Road, Hobsonville comprised of an estate in fee simple
comprising approximately 4.0469 hectares more or less being Lot 16 Deposited
Plan 66174 contained in certificate of title NA22A/359;
b) the final
terms and conditions of the sale to include provision for an area of
approximately 3,340m2 on the northern boundary of 11 Scott Road,
Hobsonville to be protected for planned roading purposes;
c) the final
terms and conditions to be approved under the appropriate delegations.
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Comments
Property
information
4. The subject
site is a four hectare site that is currently occupied by Hortex Trees and
Shrubs Limited as a nursery. The value of this property is estimated to be in
excess of $10 million. The property was acquired by the Waitakere City Council
in 2007 as part of the Strategic Land Acquisition programme, for the purpose of
creating future urban development area.
5. The Ministry of
Education intend to acquire this property for the development of a junior
school in Hobsonville. It is envisaged that the school will cater for 700
student primary school pupils, and incorporate an early childhood education
centre for 50 children. If this site is not made available to the Ministry of
Education, it can be compulsorily acquired under section 50 of the Public Works
Act 1981.
6. A 20 metre by
167 metre strip of land comprising approximately 3,340m² along the northern boundary
of this property is proposed to be used by Auckland Transport for road.
Relevant council departments have been consulted on this proposal, and the
alignment of the road through 11 Scott Road is the preferred route for the
Planning and Parks Sports and Recreation departments. The terms and conditions
of the proposed sale of this property to the Ministry of Education would
require this area to be set aside for future roading purposes, as the Scott
Point urban area develops.
Internal
consultation
7. This site has
not been through the rationalisation process as the Ministry of Education seek
to acquire it for a school. Should this site not be made available to the
Ministry of Education, it could take the site under section 50 of the Public
Works Act 1981 if necessary.
Consideration
Local
Board views and implications
8. Formal local
board engagement was not undertaken for this site as the Ministry of Education
seek to acquire it for a school and can acquire it under section 50 of the
Public Works Act 1981 if necessary. However a memo was
sent to the Upper Harbour Local Board informing it of this proposal. The Upper
Harbour Local Board chairperson has confirmed that the board would not oppose
the proposed acquisition of this site by the Ministry of Education, so long as
the proposed park and sport field land is not compromised. Panuku can confirm
that the land proposed for park and sport fields is not compromised by this
proposal.
Māori
impact statement
9. Iwi engagement
was not undertaken for this site as the Ministry of Education seek to acquire
it for a school and can acquire it under section 50 of the Public Works Act
1981 if necessary.
Implementation
10. Given it is
proposed that this is to be used for an alternative public work, section 40
Public Works Act 1981 offer back requirements would not apply.
11. This site is one
of the council’s assets to which the significance policy would apply. However,
the subject property is not considered to be a strategic asset, and the
proposed acquisition of this property by the Ministry of Education will not
impact upon the levels of service of any council activity. Due to this, we
have not undertaken community engagement on the proposed disposal of this site.
Attachments
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No.
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Title
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Page
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aView
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Images of 11 Scott Road, Hobsonville
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11
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bView
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Area of proposed road at 11 Scott Road, Hobsonville
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13
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Signatories
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Author
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Letitia McColl - Senior Advisor
Portfolio Review, Portfolio Strategy, Panuku Development Auckland
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Authorisers
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David Rankin – Director, Strategy and
Engagement, Panuku Development Auckland
Sue Tindal - Group Chief Financial Officer
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Finance and
Performance Committee
10 December
2015
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Finance and
Performance Committee
10 December
2015
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Finance and
Performance Committee
10 December
2015
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IS Transformation Programme and NewCore Project Update
File No.: CP2015/24283
Purpose
1. This report updates the Finance
and Performance Committee on progress of the NewCore project and more generally
the IS Transformation programme and budgets for the period ending 30 September
2015.
Executive
Summary
2. The Long-term Plan includes $183
million of efficiency savings for the 2014/2015 financial year, plus new
savings of $41 million totalling $224 million in 2015/2016. Total savings of
$2.74 billion are forecast over the 10 year budget.
3. Critical to the success of
achieving these efficiency savings is the IS Transformation programme. NewCore
is one of the most significant projects within the programme that enables the
future radical transformation of key customer-facing services while also
reducing the cost to serve each customer.
4. NewCore is progressing well and
remains forecast to be completed on time and on budget. Specific commentary on
progress to date:
· Achieved
Quality Assurance (QA) gate to move into system integration testing (SIT) and
commenced SIT cycle 2.
· The
project has been able to deliver further reports early through our Enterprise
Data Warehouse and Business Intelligence solution (EDW/BI) which are delivering
value now.
· While
progress has improved with Consenting there are remaining items to be actively
managed which are being worked through. These are under control, and the
corrective actions and plan are effective.
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Recommendation/s
That the Finance and
Performance Committee:
a) note progress on the NewCore
project and more generally the IS Transformation programme.
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Comments
IS Transformation
Programme
Projects
Completed/In progress
5. To date there has been strong
progress across the transformation programme with a number of key projects
completed and a further number currently underway as tabled previously to the
committee.
NewCore
detailed discussion
6. NewCore is one of the most
significant projects undertaken by Council and underpins organisational
transformation. It enables future and more radical transformation of
customer-facing services, our digital/on-line interface, and will reduce the
cost to serve as a result.
Quarterly
update to September 2015
7. As of end September Project %
actual: 68% v plan target 70%.
8. Summary of key activity and
achievement in the last quarter are:
· Selected
Enterprise Data Warehouse and Business Intelligence reports continue to be
released:
§ Privacy
and LGOIMA team, Democracy Services.
§ Animal
management, Licensing & Compliance and Consents.
· Consenting
is tracking to required dates with SAP deliverables received to commence cycle
2 (SIT2) testing.
· End
to end testing cycle 1 (SIT 1) entered and successfully completed. End to end
testing cycle 2 (SIT 2) entered and progressed to plan. Data migration is on
track with test loads successfully completed and used in our end to end testing
cycles.
· Change
road shows commenced across the region for those businesses impacted by go live
in June 2016.
· Training
needs analysis completed for all impacted businesses.
· Commenced
development system user guides and training material.
· Audit
NZ review completed of NewCore programme.
· Third
quarterly full cost reforecast completed that shows our forecast fitting within
the November 2014 approved budget.
9. Key risks/issues being addressed
(subset of risk register):
· Data
Quality – combining the data from the legacy councils into one integrated data
set that enables us to deliver a consistent set of services to our customers,
however requires significant data cleansing and rationalisation. Data
governance forum working through key decisions required.
· Transformational
Change – as we consolidate, simplify and standardise there will be changes
required in how we operate (i.e. day to day work processes and practice). Risk
that managers are not ready for the level of engagement required. Continue
working with each business as appropriate.
· Consenting
build – Still working to fully align remaining SAP deliverables with the rest
of NewCore programme and looking to achieve this for end to end testing cycle 3
(SIT 3) which commences on 2 November. Note that provision was made into the
original project timeframe to accommodate for unavoidable delays without
impacting the critical path of the programme.
· Manage
other Council initiatives impacting on NewCore programme, with the objective of
managing potential impacts on NewCore ‘go live’.
10. Upcoming significant milestones
· Finalise
NewCore quantitative and qualitative benefits analysis.
· Full
data migration test required to validate the quality and completeness of master
data (Customer, Property, Consents, etc.) as a pre-requisite to the full end to
end testing cycle.
· Complete
end to end testing cycle 2 on 22 October
· Commence
end to end testing cycle 3 (SIT 3) on 2 November 2015.
NewCore
Project Costs Year to Date and Project Life to Date
11. Current year
· Actual
YTD September 2015
$ 12.3 m
· Full
Year Budget FY15/16
$ 45.7 m
12. Whole of Project Life
· Actual
Life to September 2015 $
85.7 m
· Budget
Life to June 2016 (end of current financial year) $
123.4 m
Project
Completion forecast
13. The forecast cost for full
completion of the NewCore Project remains at $156.9m (Capital $150.9m and Opex
$6.0m) within the November 2014 approved budget. Please note that:
· The
underspend for FY2014/15 has been transferred to FY2015/16 as the variation
relates to a timing difference.
· Current
detailed re-forecasts show the programme coming in slightly under the $156.9m.
· As
an outcome from the Executive Steering Committee Risk Review session we are
looking at the potential to bring forward the June 2017 second go-live.
IS
Transformation Capital Budgets
14. The overall capital budgets for
the IS transformation programme are shown in the following table.
Consideration
Local
Board views and implications
15. Transformation projects are of
corporate support in nature. Local board views were not sought.
Māori
impact statement
16. This transformation project is
corporate support in nature and Iwi views have not been sought. Nor is it
considered there is a specific impact.
Implementation
17. There are no implementation
issues
Attachments
There are no attachments for
this report.
Signatories
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Author
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Bruce Gardiner - Commercial Manager
(CE/CFO/Governance)
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Authorisers
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Kevin Ramsay - General Manager Finance
Sue Tindal - Group Chief Financial Officer
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Finance and
Performance Committee
10 December
2015
|
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Reports Pending Status Update
File No.: CP2015/25152
Purpose
1. To update the committee on the
status of Finance and Performance Committee resolutions from July 2015
requiring follow-up reports.
Executive
Summary
2. This report is a regular
information only report that provides committee members with greater visibility
of committee resolutions requiring follow-up reports (Attachment A). It updates
the committee on the status of such resolutions. It covers committee
resolutions from July 2015 and will be updated for every regular meeting.
3. This report covers open
resolutions only. A separate report will be prepared in future covering any
confidential resolutions requiring follow-up reports.
4. The committee’s Forward Work
Programme 2015/2016 is also attached for information (Attachment B).
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Recommendation/s
That the Finance and
Performance Committee:
a) receive the Reports Pending
Status Update report.
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Attachments
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No.
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Title
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Page
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aView
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Reports Pending Status Update
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21
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bView
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Forward Work Programme 2015/2016
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23
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Signatories
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Author
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Mike Giddey - Democracy Advisor
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Authoriser
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Sue Tindal - Group Chief Financial Officer
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Finance and
Performance Committee
10 December
2015
|
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Finance and
Performance Committee
10 December
2015
|
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Finance and
Performance Committee
10 December
2015
|
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Finance and
Performance Committee
10 December
2015
|
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Finance and
Performance Committee
10 December
2015
|
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Tenders and Procurement Forward Work Programme to
October 2016
File No.: CP2015/25818
Purpose
1. To present the Tenders and
Procurement Committee forward work programme to the Finance and Performance
Committee for approval.
Executive
Summary
2. The Tenders and Procurement
Committee adopted their forward work programme on 24 November 2015.
3. The forward work programme
covers the period until October 2016 and is reviewed on a six monthly basis.
4. The Finance and Performance
Committee is to approve the Tenders and Procurement Committee’s forward work
programme.
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Recommendation/s
That the Finance and
Performance Committee:
a) approve the Tenders and
Procurement Committee’s forward work programme to October 2016.
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Attachments
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No.
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Title
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Page
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aView
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Tenders and Procurement Forward Work Programme to
October 2016
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29
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Signatories
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Authors
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Katherine Wilson - Democracy Advisor
Sara Hay - General Manager Procurement
Lucy Hawcroft - Senior Relationship Advisor
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Authoriser
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Sue Tindal - Group Chief Financial Officer
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Finance and
Performance Committee
10 December
2015
|
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Finance and
Performance Committee
10 December
2015
|
|
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Finance and
Performance Committee
10 December
2015
|
|
Community Leases Update
File No.: CP2015/23253
Purpose
1. To inform the
Committee about the new approach developed for managing the large volumes of
community lease reviews and renewals by Auckland Council.
Executive
Summary
2. Community
leases are one of the ways in which Council provides support to local community
organisations, assisting them to sustain the activities and experiences they
provide in alignment with recognised local priorities.
3. Council has a
substantial programme of community leasing work to complete this financial
year, due to the high number of leases which have rolled over and need review,
as well as upcoming renewal or expiry dates. Work has occurred to identify the
scale of the programme at a network level and introduce a programme approach to
deliver the extra volume of work prior to Christmas 2015 and throughout 2016.
4. A presentation
will be provided at the Finance and Performance Committee meeting which details
the approach, progress to date and roadmap.
5. This report
provides a business improvement update as requested by the Finance and
Performance Committee in 2014. These reports have been provided on a bi-monthly
basis to the Committee throughout 2015 and have
included updates on capex delivery and gateway, consenting made easy, technical
advice, quality advice and procurement. We would value feedback from the
Committee on whether these reports and presentations have been of value and
have met the expectations of the Committee.
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Recommendation/s
That the Finance and
Performance Committee:
a) receive the Community Leases
Update report and presentation.
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Attachments
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No.
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Title
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Page
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aView
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Community Leasing programme 2015/16 Progress update
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33
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Signatories
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Author
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Karen Titulaer - Senior Project Manager
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Authorisers
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Dean Kimpton - Chief Operating Officer
Sue Tindal - Group Chief Financial Officer
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Finance and
Performance Committee
10 December
2015
|
|
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Finance and
Performance Committee
10 December
2015
|
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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 Civic Administration Building
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Reason for passing this resolution in relation to each
matter
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Particular interest(s) protected (where applicable)
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Ground(s) under section 48(1) for the passing of this
resolution
|
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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.
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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 information which, if
disclosed, would prejudice commercial negotiations with development partners.
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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.
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