Agenda of Finance and Performance Committee

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

Date:

Time:

Meeting Room:

Venue:

Tuesday, 12 April 2016

10.30am

Reception Lounge
Auckland Town Hall
301-305 Queen Street
Auckland

Finance and Performance Committee

OPEN AGENDA

MEMBERSHIP

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

(Quorum 11 members)

Mike Giddey

Democracy Advisor

6 April 2016

Contact Telephone: (09) 890 8143

Email: mike.giddey@aucklandcouncil.govt.nz

Website: www.aucklandcouncil.govt.nz

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.

Finance and Performance Committee

12 April 2016

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 Presentations from the Auckland Regional Amenities Funding Board 9

10 Hobsonville Point 20 ha: future land use 11

11 Proposed Transfer of Land Adjacent to Lake Pokorua 13

12 Bi-monthly business improvement and performance report 21

13 Reports Pending Status Update - 12 April 2016 39

14 Consideration of Extraordinary Items

PUBLIC EXCLUDED

15 Procedural Motion to Exclude the Public 47

C1 135 Albert Street Cladding 47

1 Apologies

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

2 Declaration of Interest

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

3 Confirmation of Minutes

That the Finance and Performance Committee:

a) confirm the ordinary minutes of its meeting held on Thursday, 17 March 2016, including the confidential section, as a true and correct record.

4 Petitions

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

5 Public Input

Standing Order 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.

Finance and Performance Committee

12 April 2016

Hobsonville Point 20 ha: future land use

File No.: CP2016/05986

Purpose

1. The purpose of this report is to seek approval from the Finance and Performance Committee to dispose of approximately 20 hectares of land located at Hobsonville Point.

Executive Summary

2. On 12 November 2015, the Auckland Development Committee received an update on Hobsonville Point and the proposed screen precinct. The Auckland Development Committee further noted that the 14/6 Masterplan for Hobsonville can proceed as per a previous Auckland Development Committee resolution AUC/2015/149 dated 7 July 2015. This resolution noted that if a definitive and commercially viable proposal for a screen precinct at Hobsonville Point had not been secured by 31 October 2015, the 14/6 Masterplan for the 20 hectare Hobsonville Point block was to be adopted by council.

3. To enable the 14/6 Masterplan for Hobsonville to be implemented, we seek approval from the Finance and Performance Committee to dispose of the 20 hectare Hobsonville Point block as outlined in item 15 on the Auckland Development Committee’s agenda for its 7 July 2015 meeting and resolution AUC/2015/209.

Recommendation/s

That the Finance and Performance Committee approve:

a) the disposal of the Hobsonville land described as Lot 4, Deposited Plan 463057 contained in Certificate of Title NA134C/260 subject to the satisfactory conclusion of any required statutory processes;

b) that the final terms and conditions be approved under appropriate delegated authority.

Attachments

There are no attachments for this report.

Signatories

Author	Allan Young - Director Development - Panuku Development Auckland
Authoriser	Sue Tindal - Group Chief Financial Officer

Finance and Performance Committee

12 April 2016

Proposed Transfer of Land Adjacent to Lake Pokorua

File No.: CP2016/05240

Purpose

1. To seek approval of the transfer of land adjacent to Lake Pokorua in Kohekohe, described as Lot 2 DP 171960 in the Waipipi Parish (see Attachment A), to Te Ara Rangatū o te Iwi o Ngāti Te Ata Waiōhua Incorporated.

Executive Summary

2. In 1994, the Franklin District Council approved an application for a five lot subdivision. Subsequently a pā site with cultural significance to Ngāti Te Ata was damaged during the construction of a road to service the new subdivision.

3. Franklin District Council then acquired two lots from the subdivision under the Public Works Act 1981 with the majority of funding coming from a $150,000 public indemnity insurance pay-out. Franklin District Council resolved to gift Lot 2 DP 171960, which contains the pā site, to Ngāti Te Ata. However, the proposed transfer was delayed and the resolution was not recorded in accordance with section 31 of the Local Government (Tamaki Makaurau Reorganisation) Act 2009.

4. It is proposed that Auckland Council give effect to the previous decisions of the Franklin District Council by transferring Lot 2 DP 171960 to an iwi-based trust to preserve the cultural artefacts and manage the ecological features of the land.

Recommendation/s

That the Finance and Performance Committee:

a) approve the transfer of land adjacent to Lake Pokorua, described as Lot 2 DP 171960 in the Waipipi Parish (see Attachment A to the agenda report), to Te Ara Rangatū o te Iwi o Ngāti Te Ata Waiōhua Incorporated

b) note that, following the transfer, the trust will assume responsibility for the preservation of all cultural artefacts and management of the land, including any maintenance costs.

Comments

Background

5. Land adjacent to Lake Pokorua in Kohekohe was part of a five lot subdivision in 1994. A pā site of cultural significance to Ngāti Te Ata was damaged during the construction of a road to support the subdivision.

6. A claim of negligence was taken against the Franklin District Council. The property to be subdivided had been identified in the cultural heritage inventory as containing several pā sites. However, the subdivision application was never checked against the inventory or other provisions under Historic Places Act 1993.

7. In October 1995, Franklin District Council resolved (1995/10/22) to purchase and to divide Lot 2 DP 171960 and Lot 3 DP 171960 into the following three sections:

· a historical reserve to include middens (Lot 3 – Pokorua Historic Reserve)

· a substantial block to be transferred to Ngāti Te Ata (the majority of Lot 2)

· a small piece of wetland to be transferred to the Department of Conservation (a small piece in the North East corner of Lot 2).

8. In accordance with a negotiated settlement to the negligence claim, these lots were acquired under the Public Works Act 1981. Lot 2 was purchased for $150,000 with a public indemnity insurance pay-out to Franklin District Council and Lot 3 was purchased for $50,000. The acquisition took place in 1996, however, the land was not registered until 2009.

9. In 2010, Franklin District Council reconfirmed its previous decision on the division of land adjacent to Lake Pokorua and several operational matters (see Attachment B). However, this resolution was not recorded in accordance with section 31 of the Local Government (Tamaki Makaurau Reorganisation) Act 2009. As such, it was not actioned when Franklin District Council was amalgamated into Auckland Council.

Department of Conservation

10. In February 2015, council received formal notification from the Department of Conservation that it did not want to assume ownership of the wetland. The Department noted that the costs of maintaining the land outweighed its ecological value.

Land Status and Valuation

11. Lot 2 is the site of the main pā which was situated on Pokorua ridge. It is a non-service asset and there is presently no public use of the land. Council has no future plans for its use or development. It has a current valuation of $385,000.

Proposed Land Transfer

12. It is proposed that council transfers Lot 2 DP 171960 to Ngāti Te Ata. This option best achieves the following policy objectives to:

· provide compensation to Ngāti Te Ata in accordance with a settlement for negligence by the former Franklin District Council arising from damage to the historic pā site

· preserve and protect the archaeological and ecological sites.

13. It also gives effect to the previous resolutions of Franklin District Council and the expectations raised with the iwi.

14. Other options were considered, including leasing the land to the iwi, selling the land, or turning the land into a reserve. These have been discounted as they do not provide suitable compensation to the iwi or match the expectations raised by the resolutions of the Franklin District Council.

Next Steps

15. It is proposed that Auckland Council transfer Lot 2 DP 171960 to Te Ara Rangatū o te Iwi o Ngāti Te Ata Waiōhua Incorporated. This is the asset-holding and governance vehicle of Ngāti Te Ata. It is a legal entity which operates for charitable purposes, including to:

· educate and otherwise heighten the awareness of Ngāti Te Ata in respect of the cultural heritage of Ngāti Te Ata and Māori in general

· benefit the community at large, by encouraging the protection of New Zealand’s natural resources, the environment and encouraging conservation.

16. Following the transfer the trust will assume responsibility for the preservation of all cultural artefacts and management of the land, including any maintenance costs.

Risk

17. Independent legal advice has been obtained by council confirming that there is no legal impediment to council transferring the land to Te Ara Rangatū o te Iwi o Ngāti Te Ata Waiōhuā Incorporated.

18. The primary risk associated with the proposed land transfer is that it could be seen as creating a precedent. This risk can be effectively mitigated by clearly communicating that Auckland Council is implementing the decisions previously taken by Franklin District Council.

Consultation

19. At a workshop with the Franklin Local Board on 22 September 2015, staff presented options for the potential management or disposal of land adjacent to Lake Pokorua. The Local Board indicated a preference for this land to be transferred to Ngāti Te Ata and staff were advised to consult with the iwi.

20. Staff subsequently held three hui with Dame Nganeko Minhinnick from Ngāti Te Ata on:

· 8 October 2015

· 10 November 2015

· 4 December 2015

21. At these meetings Dame Nganeko Minhinnick expressed a strong desire for the land to be transferred so that Ngāti Te Ata can act as kaitiaki of the pa site and surrounding lands. Ngāti Te Ata has also signalled that it would like to establish papakainga housing, kāinga and a whare oranga on the site.

Local Board views and implications

22. At their meeting of 22 March 2016, the Franklin Local Board recommended that this land be transferred to Ngāti Te Ata.

23. The local board raised concerns about noxious weeds on the site and proposed that these be removed prior to the transfer. Concerns were also raised about the future zoning of the land under the Proposed Auckland Unitary Plan and sought assurances that it would allow for iwi aspirations to construct papakainga housing, kāinga and a whare oranga on the site.

Māori impact statement

24. Lake Pokorua was a source of economic and cultural wealth for Ngāti Te Ata.

25. There are several pā sites in neighbouring Kohekohe and Lot 2 is the site of the main pā which was situated on Pokorua ridge. There are several urupa along Pokorua Road.

26. The historic site was damaged during the construction of Pokorua Road. Accordingly, the proposed land transfer attempts to provide compensation to Ngāti Te Ata.

27. The land transfer will enhance the ability to Ngāti Te Ata manage and protect its cultural resources. It would also help the iwi achieve its aspirations to establish papakainga housing, kāinga and a whare oranga. The establishment of papakainga housing is an Auckland Plan priority.

Implementation

28. Subject to the decision of the Finance and Performance Committee, legal services will draft a memorandum of transfer. The memorandum will include a standard clause providing for the land to revert to council if Ngāti Te Ata seeks to dispose of it at some point in the future.

Attachments

No.	Title	Page
a View	Aerial View of Lot 2 and Land Adjacent to Lake Pokorua	17
b View	Franklin District Council Resolution Lake Pokorua	19

Signatories

Authors

Paul Marriott-Lloyd - Team Leader

Erin Taylor - Policy Analyst

Authorisers

Kataraina Maki - GM - Community & Social Policy

Sue Tindal - Group Chief Financial Officer

Finance and Performance Committee

12 April 2016

Bi-monthly business improvement and performance report

File No.: CP2016/05510

Purpose

1. To update the committee on “Building Consents and Inspections”.

Executive Summary

2. Auckland is experiencing a significant increase in building activity. The level of building activity has resourcing, quality and risk issues for council. This item (through a presentation at the committee meeting) provides an update on the number of building consents and inspections undertaken and outlines the issues arising from poor workmanship and use of unauthorized products. It also sets out what actions are proactively being taken to address these issues, by council and with other agencies.

Recommendation/s

That the Finance and Performance Committee:

a) receive the bi-monthly business improvement and performance report and the presentation.

Attachments

No.	Title	Page
a View	Building Control Regulatory Challenges	23

Signatories

Author

Evin Sungun - Office Coordinator/PA

Authorisers

Dean Kimpton - Chief Operating Officer

Sue Tindal - Group Chief Financial Officer

Finance and Performance Committee

12 April 2016

Reports Pending Status Update - 12 April 2016

File No.: CP2016/05709

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).

Recommendation/s

That the Finance and Performance Committee:

a) receive the Reports Pending Status Update report.

Attachments

No.	Title	Page
a View	Reports Pending Status Update	41
b View	Forward Work Programme 2015/2016	43

Signatories

Author	Mike Giddey - Democracy Advisor
Authoriser	Sue Tindal - Group Chief Financial Officer

Finance and Performance Committee

12 April 2016

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 135 Albert Street Cladding

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

In particular, the report contains project cost information where public disclosure would impact council's ability to negotiate and manage the contract costs effectively.

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 project cost information where public disclosure would impact council's ability to negotiate and manage the contract costs effectively.

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.