Agenda of Finance and Performance Committee

Finance and Performance Committee

13 December 2016

Disposals Recommendation Report

File No.: CP2016/23322

Purpose

1. To approve the sale of two non-service council owned properties that Panuku Development Auckland (Panuku) considers suitable for sale.

Executive summary

2. Panuku is required to identify properties from within council’s portfolio that may be suitable for potential sale to a combined value of $75 million by 30 June 2016. Capital receipts from the sale of surplus properties contributes to the Auckland Plan outcomes and the Long-term Plan 2015-2025 by providing the council with an efficient use of capital and prioritisation of funds to achieve its activities and projects.

3. The first site presented in this report, Units 1-28, 150 Mt Wellington Highway, comprises 28 units held in individual freehold strata titles. The entire site was acquired for transport purposes; however it is no longer required for this purpose. There are potential weather tightness issues in 27 of the 28 dwellings. These have been tested by external consultants and found safe for habitation. A notice has been lodged on the LIM by Auckland Council’s weather-tightness and compliance team. Consultation with council and its CCOs, iwi authorities and the Maungakiekie-Tāmaki Local Board has now taken place. No alternative service uses have been identified for this site and the feedback received has been supportive of the proposed divestment. Given the current housing shortage in Auckland, disposing of the site in a manner that ensures the 28 dwellings remain as housing stock appears to be the highest and best use of this property. Should the Finance and Performance Committee approve the divestment of this property, Panuku would seek to sell the entire property on an “as is, where is” basis, giving the new owner the benefit of the existing cash flow and the opportunity to renovate the buildings over time.

4. The second property presented in this report, 1/16 Sarona Avenue is a vacant, landlocked parcel of land that comprises 957m² of the total land area of 1467m² at 16 Sarona Avenue, Glen Eden. It was acquired in 1981 for Wairau Creek catchment remedial works which have now been completed. Consultation has been undertaken with council and its CCOs, iwi authorities and the Waitākere Ranges Local Board. No alternative service uses have been identified for this site. As such, it is recommended that this property be divested.

Recommendation/s

That the Finance and Performance Committee:

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

i) Units 1-28, 150 Mt Wellington Highway, Mt Wellington comprised of an estate of stratum in freehold described as DP 204682 – unit subdivision of Lot 3 DP 203948 contained in computer freehold register NA133A/870, NA133A/871, NA133A/872, NA133A/873, NA133A/874, NA133A/875, NA133A/876, NA133A/877, NA133A/878, NA133A/879, NA133A/880, NA133A/881, NA133A/882, NA133A/883, NA133A/884, NA133A/885, NA133A/886, NA133A/887, NA133A/888, NA133A/889, NA133A/890, NA133A/891, NA133A/892, NA133A/893, NA133A/894, NA133A/895, NA133A/896 and NA133A/897; and

ii) 1/16 Sarona Avenue, Glen Eden, part of Flat 1 Plan 135737, being a 2/3 share of Lot 15 Deposited Plan 48217 held in Composite Computer Register NA80A/365.

b) agree that final terms and conditions be approved under the appropriate delegations.

Comments

5. Panuku and the Auckland Council’s Land Advisory Services team 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 Panuku 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 a 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 steering group comprised of senior managers meets to assess the business cases. This 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. Panuku 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.

9. Once a property has been internally cleared of any service requirements, Panuku then consults with local boards, mana whenua and ward councillors.

10. All sale recommendations must be approved by the Panuku board before a final recommendation is made to the governing body.

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. Panuku attend workshops with the relevant local board and provide information about properties being rationalised in its local board area. A report is subsequently prepared for the local board business meeting so that its views can be formalised.

12. If a local board wishes to retain a site, its views are considered by Panuku 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 service need that will be met by retaining the site, along with how the service use will be funded. Panuku and relevant council departments or CCOs work with local boards in preparing the business case. The business case is then considered by the cross council steering group. If the business case is accepted and funding is identified, the property is transferred back to the service portfolio. If the business case is not accepted, the business case is included in the report to the governing body for a political decision.

13. The views of the relevant local boards about the subject sites are contained in Attachments A and B of this report.

Māori impact statement

14. The importance of effective communication and engagement with Māori on the subject of land is understood. Panuku has 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.

15. Panuku’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.

16. From discussions with our Māori 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, Panuku will work with the relevant council departments to assess the merits of any such requests and keeps the interested parties informed along the way.

17. Mana whenua groups are also invited to express potential commercial interest in any sites and are put in contact with Panuku’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.

Implementation

18. 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 ⇩	Units 1-28, 150 Mt Wellington Highway, Mt Wellington property information	13
b ⇩	1/16 Sarona Avenue, Glen Eden property information	21

Signatories

Authors

Anthony Lewis - Senior Advisor Portfolio Review, Portfolio Strategy, Panuku

Letitia McColl - Team Leader Portfolio Review, Portfolio Strategy, Panuku

Authorisers

Marian Webb – Manager, Portfolio Strategy, Panuku

David Rankin – Director Strategy and Engagement, Panuku

Rex Hewitt – Relationship Manager, Local Board Services

Sue Tindal - Group Chief Financial Officer

Finance and Performance Committee

13 December 2016

Auckland Council organisation report for the period 1 July 2016 to 30 September 2016

File No.: CP2016/23016

Purpose

1. To provide an overview of the Auckland Council organisation (the parent entity) performance results for the period 1 July 2016 to 30 September 2016.

Executive summary

2. The performance results presented in this report are for the Auckland Council organisation (the parent entity), not the group. A separate report of the group financial results is included in the agenda papers for this committee, together with separate reports on the performance of each CCO.

Highlights and achievements

3. The report includes an overview of the highlights and achievements in areas that are key for achieving organisational objectives. There is a range of significant highlights and achievements over the quarter, which includes the following items.

· The council and the Crown entered into a Heads of Agreement for the equal co-funding and delivery of the City Rail Link.

· The final deliverable for the Auckland Transport Alignment Project, which sets out a direction for the development of Auckland’s transport system over the next 30 years, was completed in conjunction with Auckland Transport (AT), Ministry of Transport (MoT), New Zealand Transport Agency (NZTA) and Treasury and publicly released.

· The decision to make the Unitary Plan “operative in part” was a major milestone that will enable large parts of the Regional Policy Statement, Coastal Plan and some parts of the District Plan to be made operative immediately, replacing the legacy regional and district plans and giving effect to the Auckland Plan.

· JobFest at The Cloud was attended by 80 employers and more than 2,000 young people. Positive feedback was received, particularly in relation to the ‘work readiness’ and calibre of the young people.

· Treasury: Both Moody’s and Standard & Poor’s reaffirmed the council’s credit ratings as Aa2 and AA respectively, with a stable outlook from both.

Service performance

4. For each of the activities delivered by the council, the Long-term Plan 2015-2025 (LTP) includes level of service statements and associated performance measures. This report provides interim performance results showing how we are tracking on the performance measures for the first quarter. Year-end outlook information is included in the report together with commentary to explain actions being taken to address any performance gaps (Appendix 1).

5. The first quarter-end performance measure results show that 72 per cent of the measures have either achieved the targets set in the LTP or achieved a result close to target. The remaining 28% of the performance measures did not achieve the targeted service levels. The year end outlook is that 35 per cent of the performance measures will not achieve the targets set in the LTP.

6. A number of performance measures in the regulatory services area are not achieving the targets set in the LTP. This includes the following key measures:

· Building consent and resource consent processing times

· Customer satisfaction with the overall quality of building control service delivery

· Percentage of high-risk alcohol premises inspected annually

· Percentage of food premises graded annually

· Number of dwellings and sites consented towards Auckland housing targets.

7. Economic data for Auckland (Appendix 2) continues to show strong growth occurring. Net migration into Auckland, a key indicator of growth, shows 32,768 people have migrated into Auckland in the last year. The regulatory services delivered by the council have been impacted by the growth in the city. Significant increases in activity volumes have been experienced in both the building control and resource consenting areas. To cope with the demand for services, there is a range of initiatives that have been put in place, such as the “Consenting Made Easy” programme, which encompasses a number of online consenting enhancements and new mobile technology to carry out inspections, as well as better workforce planning.

Financial performance

8. The financial performance results provide an indication of how the organisation is performing against the budget, and associated financial risks.

9. The quarter-end net operating financial results are on track compared to budget, with a $24 million favourable variance to budget. The year end outlook is that the net operating result will be in line with the approved budget.

10. Capital expenditure delivery performance is on track with an $89 million investment completed this quarter. There are risks that there will be some delays in the delivery of the full programme of work budgeted for the year.

11. Treasury management performance is also included in the report. Total gross debt of $7.4 billion aligns to Annual Plan projections. In addition, the average funding costs of debt are in line with the budgeted levels.

12. Employee numbers have declined slightly in the first quarter of 2017. Whilst the Full-Time Equivalent staff numbers for the regulatory areas have been increasing to cope with the surge in demand for services in this area there has been an offsetting decreases in staff numbers in other areas, particularly the back-office support areas.

13. The report also includes additional information relating to a number of areas including professional services expenditure, LGOIMAs and customer service, in the appendices.

14. The Waste Solutions team has been progressively rolling out changes to inorganic waste collection and recycling services. Appendix 6 of this report provides an update on the service performance.

Recommendation/s

That the Finance and Performance Committee:

a) note the following highlights and achievements for the period 1 July 2016 to 30 September 2016:

i) the council and the Crown entered into a Heads of Agreement for the equal co-funding and delivery of the City Rail Link

ii) the final deliverable for the Auckland Transport Alignment Project was completed and publicly released

iii) the decision to make the Unitary Plan “operative in part” will enable large parts of the Regional Policy Statement, Coastal Plan and some parts of the District Plan to be made operative immediately

iv) both Moody’s and Standard & Poor’s reaffirmed the council’s credit ratings as Aa2 and AA respectively, with a stable outlook from both.

b) note the Auckland Council parent performance results for the period 1 July 2016 to 30 September 2016, highlighting:

i) that 72 per cent of the Long-term Plan (LTP) performance measures have achieved the targets set in the LTP or achieved a result close to target.

ii) the net operating financial results are on track compared to budget, with a $24 million favourable variance to budget

iii) capital expenditure delivery performance is on track with an $89 million investment completed this quarter, with some delays expected in the delivery of the full programme budgeted for the year.

Comments

15. The performance results presented in this report are for the Auckland Council parent, not the group. A separate report of the group financial results is included in this committee’s agenda papers.

Highlights and achievements

16. Key highlights and achievements for the quarter are summarised below. These are sorted by the service delivery themes as expressed in the Long-term Plan (LTP).

Auckland Development

17. On 14 September the council and the Crown entered into a Heads of Agreement for the equal co-funding and delivery of the City Rail Link. Specific implementation details will be agreed in a “Sponsors Agreement” to establish a separate legal entity to manage the project and will be jointly owned by the council and the Crown. Establishment of the new entity is expected in early 2017.

18. The final deliverable for the Auckland Transport Alignment Project, which sets out a direction for the development of Auckland’s transport system over the next 30 years, was completed in conjunction with AT, MoT, NZTA and Treasury, and has been publicly released along with supporting information.

19. The decision to make the Unitary Plan “operative in part” was a major milestone that will enable large parts of the Regional Policy Statement, Coastal Plan and some parts of the District Plan to be made operative immediately, replacing the legacy regional and district plans and giving effect to the Auckland Plan.

20. On 16 September, five concurrent plan variations and qualifying developments were approved for The Landing Hobsonville, Clarks Beach, Kahawai Point, Mill Road in Takanini and Quarry Road. There will be provision for around 2,500 dwellings to be created from these greenfield sites.

21. We completed the notice of requirement (designation) process for Section 2 of the Glen Innes to Tāmaki Drive shared path, a joint NZTA and AT project that will deliver a 7km-long path that connects Auckland’s eastern suburbs to the city centre.

22. In partnership with the Tāmaki Makaurau Regeneration Agency, the Tāmaki Design Review Panel was launched on 17 August to review large-scale projects in the Tāmaki Makaurau Regeneration area.

Environmental management and regulation

23. A significant milestone was reached for the Te Auaunga Awa / Oakley Creek Restoration project with the award of the physical works contract. The next steps will be for the project team and contractor to engage with the local community and develop the skills to support the industry and create employment opportunities for local youth. When completed, this project will address flooding issues, facilitate redevelopment of the local area and restore native ecologies.

24. Activity remains strong in Building Control and Resource Consents. In the 12 months to September, the number of building inspections delivered increased by 9.5 per cent and the number of building consents lodged increased by 8.6 per cent compared to the previous 12-month period. The equivalent comparison for resource consents lodged shows an increase of 15 per cent.

25. Te Waka Korero (the Green Rig, Auckland Council’s mobile engagement truck) has been re-equipped and customised to be a fully functional mobile Emergency Operations Centre.

26. The Auckland Civil Defence and Emergency Management (CDEM) Group committee approved and adopted the Auckland CDEM Group Plan 2016-2021 following a review by the Minister of Civil Defence. The Minister was satisfied that the proposed plan met the requirements of the CDEM Act and she “commend(ed) the Auckland CDEM Group’s enthusiasm and commitment to CDEM issues”.

27. Airbnb signed an agreement with Auckland Council to provide accommodation support in an emergency. The Memorandum of Understanding (MoU) will enable Airbnb to provide free temporary accommodation to residents impacted by disasters in the region. This agreement is the first in New Zealand and joins only two others in the world.

28. Auckland Council’s Hunua Ranges Pest Management Programme has received the 2016 Local Government New Zealand Excellence Award for environmental impact. The 1080 programme was carried out in August and September 2015, successfully achieving its targets of reducing pest numbers to allow for ecosystem recovery and the reintroduction of rare and threatened species.

Parks, community and lifestyle

29. The council announced its decision to remove sugar-sweetened drinks from vending machines at council-operated leisure centres and replace them with healthier options.

30. A $2 million grant from inner city targeted rates was approved for the upgrade of the James Liston Hostel in Freemans Bay for emergency housing.

31. JobFest at The Cloud was attended by 80 employers and more than 2,000 young people, and positive feedback was received, particularly in relation to the ‘work readiness’ and calibre of the young people. Auckland Transport, Auckland Council and Watercare all had a presence at the event.

32. Refurbishment of Massey Community House and Rānui Community House was completed in September.

33. Matariki Festival 2016 was a great success, with more than 100 events showcasing the unique cultural identity of Tāmaki Makaurau.

34. The Civic Events team delivered a number of events including the opening of the Te Whau Walkway in Snells Beach, the Harbour View flax planting for Henderson-Massey and the Pukekiwiriki Pa Dawn blessing.

35. Four council early childhood education centres undertook their Education Review Office audit and each were given a three-year extension to their licence, which demonstrated they are performing well and had made improvements from their previous audits.

36. Toutouwai / North Island robin that were recently trans-located to Shakespear Regional Park have started breeding, with four confirmed nests. A high rate of retention for trans-located birds has been recorded and this bodes well for strong genetic diversity for this population.

37. The Ngāti Whātua Ōrākei Reserves Board adopted the Pourewa Creek Recreation Reserve Management Plan, which paves the way for site restoration, access and an educational nursery.

Governance and support

38. The campaign to increase uptake of direct debit and e-rates resulted in 12,168 e-rates and 8,828 direct debit sign-ups in August. This is a 120 per cent increase for e-rates and a 50 per cent increase in direct debits compared to August 2015.

39. Results of the Auditor-General’s review of the council’s complaints process were presented to Parliament and the council’s Audit and Risk Committee. The Auditor-General approved of our current process, stating it works well and has the fundamentals in place. Customers can complain in a variety of ways, the system is flexible, timely responses are provided and customers were generally satisfied with the process and the responses they received. The audit made a number of recommendations that could further enhance our complaints process, which are currently being implemented.

40. The Group Annual Report 2015/2016 was adopted by the Governing Body in September 2016 with an unmodified audit opinion received from the external auditors. The report received positive feedback from the auditors about improved processes and quality. The length was reduced by 15 per cent, resulting in cost and time savings.

41. Treasury: Both Moody’s and Standard & Poor’s reaffirmed the council’s credit ratings as Aa2 and AA respectively, with a stable outlook from both.

Service performance

42. For each of the activities delivered by the council the LTP includes level of service statements and associated performance measures. This section provides our performance results for the first quarter compared to the targets set in the LTP. These results are unaudited. The year-end audited results for 2015/2016 are available in the Annual Report.

43. The quarterly performance report presented here includes results for those LTP performance measures where the information is available at the quarter end. Also included in the report is a year-end outlook for the performance measure results, together with commentary from the relevant business unit where there are performance gaps.

44. As at September 2016, results for 55 per cent of the total number of LTP measures are available for reporting. The remaining 45 per cent will be reported as they become available, for example from customer survey results.

45. The latest results show that 28 regional measures (59 per cent) have achieved the targets set, six measures (13 per cent) have achieved a result close to target (termed ‘substantially achieved’) and 13 measures (28 per cent) have not achieved their targets. The year end outlook is that 35 per cent of the performance measures will not achieve the targets set in the LTP.

46. A number of performance measures in the regulatory services area are not achieving the targets set in the LTP. This includes the following key measures:

· Building consent and resource consent processing times

· Customer satisfaction with the overall quality of building control service delivery

· Percentage of high-risk alcohol premises inspected annually

· Percentage of food premises graded annually

· Number of dwellings and sites consented towards Auckland housing targets.

47. Economic data for Auckland (Appendix 2) continues to show strong growth occurring. Net migration into Auckland, a key indicator of growth, shows 32,768 people have migrated into Auckland in the last year. The regulatory services delivered by the council have been impacted by the growth in the city. Significant increases in activity volumes have been experienced in both the building control and resource consenting areas. For Building Control in the 12 months to September the number of building consents lodged increased by 8.6 compared to the previous 12 month period; the equivalent comparison for resource consents lodged shows an increase of 15%.To cope with the demand for services, there is a range of initiatives that have been put in place, such as the “Consenting Made Easy” programme, which encompasses a number of online consenting enhancements and new mobile technology to carry out inspections, as well as better workforce planning.

48. The next graphs provide a summary of key performance measures. Further details can also be found in Appendix 1.

49. The symbols below are used to summarise the results. These align with the symbols used in the audited Annual Report.

Achieved	Substantially achieved	Not achieved but progress made	Not achieved

50. Percentage of registered food premises graded annually

51. Percentage of high-risk alcohol premises inspected annually

52. Percentage of urgent animal management complaints such as dog attacks responded to within one hour

53. Number of dwellings and sites consented towards Auckland housing targets

54. Percentage of building consent applications processed within 20 days

55. Percentage of customers satisfied with the overall quality of building control service delivery

56. Percentage of non-notified resource consent applications processed within
20 working days

57. Percentage of customers satisfied with the overall quality of resource consents service delivery.

58. Domestic kerbside refuse (kilograms per capita per annum)

59. The median response time (in hours) to attend a flooding event, from the time that Auckland Council receives notification to the time that service personnel reach the site

60. Facility utilisation – utilisation at peak times for council-managed community centres and venues for hire

61. Facility utilisation – utilisation at off-peak times for council-managed community centres and venues for hire

62. Percentage of community facilities bookings used for health- and wellbeing-related activity

63. Number of visits to library facilities per capita

64. Number of library items borrowed (millions)

65. Rolling 10-year return for diversified financial assets portfolio, compared to reference portfolio

Financial performance

66. This section provides an overview of the financial performance results for the quarter ended 30 September 2016.

$millions	YTD Actual	YTD Revised Budget	YTD Variance		FY Revised Budget	FY Annual Plan	YE Out- look
Operating revenue	131	125	6	5%	534	532
Operating expenditure	557	571	14	2%	2,115	2,103
Net operating expenditure	426	446	20	4%	1,581	1,571
Rates revenue	1,642	1,638	4	-	1,649	1,649
Net operating surplus/(deficit)	1,216	1,192	24	2%	68	78
Net non-operating revenue/(expenditure)	(172)	(81)	(91)	(112%)	(318)	(323)
Net surplus/(deficit)	1,044	1,111	(67)	(6%)	(250)	(245)

67. Operating revenue
The overall result year to date is $6 million (five per cent) favourable to budget, mainly due to higher regulatory services revenue, property rental revenue and dividend income than budgeted.

68. Operating expenditure
Year to date this is $14 million (two per cent) favourable to budget mainly due to expenditure incurred later than originally planned across various work programmes and lower interest costs incurred on debt (due to timing delays in capital projects).

69. Rates revenue
Rates revenue is slightly higher than budget for the year, mainly due to the timing of rates remissions and the processing of objections on rateable values. The rates revenue recognition happens at the beginning of the year (July) at the time of the issuance of ratings notices in accordance with accounting standards.

70. Net operating surplus/deficit
Overall surplus of $1,216 million is $24 million favourable compared to budget. The operating budgets for the year include budgeted savings targets of $25 million. These savings targets are being progressed through a number of initiatives including smarter procurement, simpler and better information technology and bringing work in-house to reduce reliance on external providers. The year-end outlook for the net operating result is expected to align with the overall approved budget for the year; however there are challenges and risks associated with delivering the savings targets for the year.

71. Non-operating revenue/expenditure
$91 million unfavourable compared to budget. This is mainly due to accounting (non-cash) adjustments related to the fair value of the treasury derivatives portfolio. The year-end outlook for the non-operating results does have some uncertainty mainly due to the impact of global financial market changes on the fair value of the treasury derivatives portfolio and the associated accounting (non-cash) adjustments that may be required.

72. Net surplus/(deficit)
The overall result shows a surplus of $1,044 million, which is $67 million unfavourable compared to the budget, due to the reasons outlined above. The large surplus for the first quarter is mainly driven by the recognition in full of 2016/2017 rates revenue at the time of the issuance of rating notices in July in accordance with accounting standards. This surplus will reduce as the year progresses.

73. Net operating performance results by theme

The next table provides a split of the net operating result by each of the LTP themes.

Net operating result by theme

$million	YTD Actual	YTD Revised Budget	YTD Variance		FY Revised Budget	FY Annual Plan
Auckland development	38	39	1	3%	133	129
Economic and cultural development	19	23	4	17%	94	94
Environmental management and regulation	71	73	2	3%	291	294
Parks, community and lifestyle	120	119	(1)	(1%)	486	490
Transport	100	100	-	-	416	416
Governance and support	78	92	14	15%	161	148
Net operating expenditure	426	446	20	4%	1,581	1,571
Rates revenue	1,642	1,638	4	-	1,649	1,649
Net operating surplus	1,216	1,192	24	2%	68	78

The ‘Economic and cultural development’ theme has a favourable result year to date mainly due to timing differences in activity. The ‘Environmental management and regulation’ theme has a favourable result mainly due to increased consents volumes and other user charges. For the ‘Governance and support’ theme, the favourable variance to budget is largely due to the lower interest costs incurred on debt and timing differences relating to the CCO funding.

74. Capital expenditure delivery performance

Over the first quarter, $89 million of capital expenditure was completed, which is 16 per cent of the full programme of $570 million approved for the year. The latest forecast indicates that about 90 per cent of the programme is expected to be delivered this year. This forecast will be revised next quarter as more projects progress and risks and potential delays can be more accurately identified. In 2015/2016, 74 per cent of the $556 million work programme was delivered.

75. Capital expenditure delivery performance by theme

$million	YTD Actual	YTD Revised budget	YTD Variance	FY Revised Budget	FY Annual Plan	% Complete
Auckland development	12	13	1	160	192	8%
Environmental management and regulation	25	23	(2)	108	117	23%
Parks, community and lifestyle	34	35	1	206	206	17%
Governance and support	18	20	2	96	77	19%
Capital expenditure	89	91	2	570	592	16%

Capital delivery to date is on track. Projects progressing over the quarter included Albany Stadium Pool, Parnell pool upgrade, Shore Road Reserve sportsfields upgrade, park land acquisition, library book purchases, various asset renewals (e.g. playgrounds, public toilets, car parks, stormwater) and the NewCore project.

76. Balance sheet performance

$million	Actual as at September 2016	Projected per Annual Plan 2017	Actual audited June 2016
Assets
Property, plant and equipment	13,472	13,059	13,410
Other assets and investments	25,698	24,550	24,226
Less liabilities
Borrowings	7,392	8,025	6,942
Other liabilities	1,945	1,402	1,904
Net assets (ratepayers’ equity)	29,833	27,182	28,790

77. Property, plant and equipment: the increase of $62 million since June 2016 is mainly as a result of capital expenditure progressing. Asset revaluations at year end 30 June 2016 resulted in asset values higher than projected in the Annual Plan.

78. Total borrowing at 30 September 2016 was $7.4 billion; forecast year end debt is expected to be in line with the Annual Plan projections.

79. Treasury management

Treasury management information can be found in Appendix 3 - Treasury report. This report includes treasury compliance information together with information about the performance of treasury activities against benchmarks.

80. Debt levels increased over the September quarter, offsetting the increase in cash balances (held for the repayment of Crown borrowing). This is a timing difference with debt reducing in October 2016 following the repayment of the Crown borrowing.

81. Funding costs: the year-to-date average cost of funds was 5.04 per cent, which is lower than the budgeted level of 5.31 per cent.

82. The Diversified Financial Assets portfolio totalled $226 million at the end of September 2016, after a partial sale of $100 million (as approved by the Governing Body). The short-term return on the portfolio for the year-to-date was 3.70 per cent, exceeding the benchmark portfolio (return of 3.26 per cent).

83. Debtors’ management information can be found in Appendix 8. Rates debt collection at 30 September is on track, with a record number of customers (29%) paying by direct debit. Further information available in the appendices to this report includes:

84. Employee numbers

There is a legislative requirement to include employee numbers in the audited Annual Report each year. This is presented for both the Auckland Council parent and group (refer to page 76 of the Annual Report 2015/2016, volume 3).

85. As not all employees work the same number of hours per week a simple head count does not give meaningful comparatives between years. Instead Full-Time Equivalent (FTE) is used, which means everyone is converted to the equivalent of forty hours per week. For instance a staff member working 20 hours per week in a leisure centre would be shown as a 0.5 FTE.

86. The table below shows the trend of both FTE and FTE per 1,000 residents in Auckland for the council parent organisation. Overall the FTEs have remained at similar levels, with a slight decline in the first quarter of 2017. The FTE for the regulatory areas have been increasing to cope with the surge in demand for services in this area whilst there have been offsetting decreases in FTE in other areas, particularly the back-office support areas. When compared with the growing population of Auckland, the FTE are trending favourably to a lower rate.

	Q1 FY2017	Q4 FY2016	Q4 FY2015
Number of full-time equivalents (FTE)	6080	6102	6088
FTE per 1,000 residents	3.75	3.78	3.88

87. Information and Communications Technology (ICT) – a separate report will be presented to the Finance and Performance committee early in 2017 which will provide updated information about the costs of ICT (including staff costs) and the ICT work programme.

88. Further information available in the appendices to this report includes:

Appendix 1 – Service performance

Appendix 2 – Auckland economic update

Appendix 3 – Treasury report

Appendix 4 – Professional services expenditure information

Appendix 5 – LGOIMA information

Appendix 6 – Waste solutions performance update

Appendix 7 - Customer service information

Appendix 8 – Debtor information

Consideration

Local board views and implications

89. Local boards receive their own reporting for their respective areas. The local board quarterly performance reports have been enhanced to improve the quality of information presented to the boards in relation to the reporting on the LTP performance measures. The aim here is to provide an early indication to the local boards as to how performance is tracking against targeted levels.

Māori impact statement

90. The report details some high-level activities delivered in the first quarter of 2016/2017, of which there are several initiatives with positive impacts on, or for, Māori.

91. A key activity delivered during the quarter was the Matariki Festival 2016, which included more than 100 events showcasing the unique cultural identity of Tāmaki Makaurau.

Implementation

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

Attachments

No.	Title	Page
a ⇩	Performance report appendices September 2016	171

Signatories

Author

Jenny Livschitz - Manager Corporate Performance and Reporting

Authorisers

Kevin Ramsay - General Manager Corporate Finance and Property

Sue Tindal - Group Chief Financial Officer

Finance and Performance Committee

13 December 2016

Te Toa Takitini - Quarter One Māori Responsiveness portfolio report

File No.: CP2016/23470

Purpose

1. To report on quarter one progress for Te Toa Takitini 2016/2017 Māori Responsiveness portfolio.

2. To provide an overview of the 2016/2017 Te Toa Takitini portfolio.

Executive summary

3. Te Toa Takitini Māori Responsiveness portfolio monitors and reports on activity and expenditure to Māori transformational shift priorities and co-governance activity.

Māori transformational shift activity

2016/2017 budget and year to date expenditure

4. The budget for the 2016/2017 financial year is $9,863,000. Expenditure for the first quarter is $918,000 against a budget of $1,024,000, or 89.6 per cent. This is 9.3 per cent of annual budget of $9,863,000. The main issue signalled by project managers for this quarter has been around staff resourcing, which has now been addressed.

Year-end forecast

5. The rate of spend is expected to increase over the remaining quarters, with forecast spend for the year of $9,787,000, or 99.2 per cent of annual budget. Year to date and forecast expenditure are presented in Table One.

Table One: Māori Transformational Shift Activity

Māori Transformational Shift Activity	FY17 Q1 Actual 000's	FY17 Q1 Budget 000's	FY17 Annual Forecast 000's	FY17 Annual Budget $000
Whai Rawa - Economic Development	-	-	960	960
Whai Painga - Māori Social Well-being	111	119	961	967
Whai Tiaki - Māori Cultural Well-being	684	799	7,249	7,333
Whai Tika - Effectiveness for Māori	110	93	565	552
Whai Tahinga - Treaty Settlement	12	13	52	52
Grand Total	918	1,024	9,787	9,863

6. Te Toa Takitini has multiple reporting requirements, it currently reports progress at:

· Financial and Performance Committee

· Audit and Risk Committee

· Joint Governing Body and Independent Māori Statutory Board meeting

· Te Toa Takitini Executive Leadership Group

7. Given the various reporting requirements of Te Toa Takitini and its current review in preparation for the next financial year, there is a need to refine the focus and detail of reporting. At the next report to the Finance and Performance Committee in March, a refocussed reporting format will be used that better meets the needs of various report audiences, as well as any changes resulting from the Te Toa Takitini review.

Co-governance and co-management entities

8. There has been significant progress by co-governance and co-management entities in the first quarter, including: completion of the Tūpuna Maunga Integrated Management Plan (in respect of Maungauika), the Tūpuna Maunga Authority (the Authority) capital budget programme for 2016–2018 and the development of a Parakai Reserve Management Plan.

9. Quarter one financial results for co-governance and co-management arrangements are not included in this report. These results will be presented to the co-governance entities first for review.

Recommendation/s

That the Finance and Performance Committee:

a) note progress on key Te Toa Takitini portfolio projects, including:

i) Whai Rawa: planning for the Māori Signature Event – Tāmaki Herenga Waka Festival 2017 is well underway, and the festival will be held on Auckland Anniversary Weekend 2017

ii) Whai Painga: through the Whare for Life programme, the Development Programme Office is supporting initiatives through the pre-resource consent application and resource consent application stages

iii) Whai Tiaki: Para Kore ki Tāmaki, which is supporting the council’s target to have zero waste by 2040, has contributed to Para Kore national winning this year’s Energy Globe Award (International Award)

iv) Whai Tika: progress on the Treaty Audit response has been impacted by staff resourcing, however with a renewed focus, three action groups are expected to be complete by the end of quarter two

v) Local board engagement: work is underway to ensure that local board plans developed in 2017 clearly articulate how they are being responsive to Māori within their communities.

b) note that, due to the multiple reporting requirements and changes resulting from the Te Toa Takatini review, the next report to this committee will have a refocused reporting format that better meets the needs of the report audience.

Comments

Te Toa Takitini programme

2016/2017 budget and year to date expenditure

10. The budget for the 2016/2017 financial year is $9,863,000. Expenditure for the first quarter is $918,000 against a budget of $1,024,000, or 89.6 per cent. This is 9.3 per cent of annual budget of $9,863,000. The main issue signalled by project managers for this quarter has been around staff resourcing, which has been addressed.

Table One: Māori Transformational Shift Activity

Māori Transformational Shift Activity	FY17 Q1 Actual 000's	FY17 Q1 Budget 000's	FY17 Annual Forecast 000's	FY17 Annual Budget $000
Whai Rawa - Economic Development	-	-	960	960
Whai Painga - Māori Social Well-being	111	119	961	967
Whai Tiaki - Māori Cultural Well-being	684	799	7,249	7,333
Whai Tika - Effectiveness for Māori	110	93	565	552
Whai Tahinga - Treaty Settlement	12	13	52	52
Grand Total	918	1,024	9,787	9,863

11. Expenditure across the Māori transformational shift activity:

· Whai Rawa - Economic Development: expenditure for Whai Rawa is expected to occur from quarter two to quarter four.

· Whai Painga - Māori Social Well-being: quarter one expenditure of $111,000 from a quarter one budget of $119,000, indicating a variance of $8,000.

· Whai Tiaki - Māori Cultural Well-being: quarter one expenditure of $684,000 from a quarter one budget of $799,000, indicating a variance of $115,000.

· Whai Tika - Effectiveness for Māori: quarter one expenditure of $110,000 from a quarter one budget of $93,000, indicating a variance of ($17,000).

· Whai Tahinga - Treaty Settlement: quarter one expenditure of $12,000 from a quarter one budget of $13,000, indicating a variance of $1,000.

12. Key project variances are as follows:

· Whai Painga - Māori Wardens (Auckland Transport): Quarter one budget $107,555 for service delivery cost. Actual $100,900. Variance $6,655.

· Whai Tiaki - Kaitiakitanga of Tāmaki Makaurau Capacity funding: Quarter one budget of $120,000 for grants, actual for quarter one was $40,000. Variance of $80,000. Quarter two expenditure will increase with payment of delayed grants.

· Whai Tika – Elections process: Quarter one budget of $50,000, actual of $62,149. Variance of ($12,149). Due to integration of multiple Māori elements into planning and design of election campaign.

Year-end forecast

13. The rate of spend is expected to increase over the remaining quarters, with forecast spend for the year of $9,787,000, or 99.2 per cent of annual budget.

Co-governance and co-management entities

Quarter one highlights

14. The Tūpuna Maunga Authority provided the approved Tūpuna Maunga Integrated Management Plan to the Minister of Conservation for her formal approval (in respect of Maungauika)

15. The Tūpuna Maunga Authority approved a capital budget programme for 2016–2018 and the Pest, Weed and Animal Control programme 2016/2017, a programme that has been shaped by earlier engagement with the Tāmaki Collective.

16. A meeting between the Maunga Authority, Tūpuna Taonga Trust, mana whenua chairs, the Mayor and Chief Executive of Auckland Council, and members of the Governing Body took place where they received a presentation on the significant achievements made in the first term of the Authority.

17. The Parakai Recreation Reserve Board approved the development of a Reserve Management Plan.

18. Quarter one financial results for co-governance and co-management arrangements are not included in this report. This is because these results have not yet been presented to the co-governance entities, as the focus has been on finalising and presenting audited prior year annual accounts first.

Summary of Whai Rawa – Māori Economic Well-Being

19. The Whai Rawa programme consists of projects and initiatives that contribute to Māori economic well-being. The narrative below provides highlights from quarter one activity.

Quarter one highlights

20. Māori signature event: planning for the Tāmaki Herenga Waka Festival 2017 has begun and is tracking well. The festival will be held on Auckland Anniversary Weekend 2017. A mana whenua steering group was established, and the steering group endorsed the event concept and draft programme. The Viaduct Events Centre has been secured as the new venue for the festival, in partnership with Regional Facilities Auckland.

21. In quarter four 2015/2016, Auckland Tourism Events and Economic Development (ATEED) initiated engagement with Northland Inc. and NZ Māori Tourism (NZMT) to support an application for $50,000 to the Four Seasons Five Senses Auckland Airport Grant. It has since been announced that this application was successful and was led by TIME Unlimited and has activated collaboration between six Auckland and six Northland Māori tourism operators to cluster itineraries that will sit under several different Māori stories or themes. The six Auckland operators are:

· TIME Unlimited

· Te Haerenga

· Tāmaki Hikoi

· Te Hana

· Tāmaki Paenga Hira (Auckland Museum)

· Waka Quest

22. The purpose of this kaupapa is to showcase a combined Auckland/Northland Māori tourism proposition and help to strengthen the case for both to be considered as places for visitors to experience Māori culture. The objective of this cluster group is to support Tourism New Zealand’s endeavour to tell regional Māori stories to offshore agents.

23. E Tipu, E Rea – Māori Business Growth Workshop: following the success of the first Māori business growth workshop focused on construction, trades and professional services, three additional sector capability workshops have been identified for delivery across 2017. The focus will be on the following three sectors:

· Food and beverage

· Creatives

· ICT/digital

24. Māori Business Ecosystem report: ATEED has shared the Māori Business Ecosystem report with relevant stakeholders and used these findings to guide ATEED’s Māori Economic Development Strategy for 2016/2017.

25. Matariki Awards and Māori Business Leaders Awards: ATEED is still planning on sponsoring these events in 2017 to showcase Māori success within Tāmaki Makaurau.

26. 2017 World Indigenous Tourism Conference: ATEED is excited to represent Aotearoa as the host of the World Indigenous Tourism Alliance (WINTA) Pacific Asia Indigenous Tourism Conference from 10 - 13 September 2017. In partnership with New Zealand Māori tourism. ATEED has engaged a Professional Conference Organiser (PCO) to plan and deliver this international conference. The goals of the conference are to create:

· An outstanding event in partnership with NZMT that supports the objectives of WINTA

· To connect indigenous peoples and businesses and as a result sustainable business opportunities are created

· To promote indigenous tourism to international and local media

· To showcase the Māori tourism proposition to visiting delegations and politicians

· To create other platforms that are run in conjunction with this conference e.g. a NZ Māori tourism trade event, research symposium and policy meetings

· To leave a ‘tohu’ (mark) that is adopted by WINTA and becomes a legacy of the Aotearoa event

· To have globally recognised indigenous and non-indigenous figures attend as guest speakers

· To support Aotearoa and Tāmaki Makaurau’s vision for becoming an indigenous business, innovation and events hub

Key priorities for the second quarter

27. Māori Tourism Development: Four Seasons Five Senses Auckland Airport Grant - work with collaboration of Auckland/Northland Māori tourism operators to plan and initiate the project.

28. Further planning for new Whai Rawa initiatives will occur in quarter two, including E Tipu, E Rea – Māori Business Growth Workshops, and procurement discussions.

29. 2017 World Indigenous Tourism Conference: scoping and planning activities will be conducted during quarter two.

Summary of Whai Painga – Māori Social Well-Being

30. The Whai Painga programme consists of projects and initiatives that contribute to Māori social well-being. The narrative below provides highlights from quarter one activity.

Quarter one highlights

31. Community of practice approach across all Whai: existing practices have been reviewed, and operating practices are currently in development.

32. Road safety programmes: dual language videos on drivers licencing resulted in 36 rangatahi (youth) completing a marae-based licencing course.

33. Māori housing – Whare for Life: the Development Programme Office has been established as the lead for Auckland Council’s Māori housing programme as part of the Te Toa Takitini Programme. In quarter one, the position of Principal Māori Housing Lead was recruited. The majority of the current initiatives are at the pre-resource consent application stage investigating project feasibility or are developing plans for resource consent application. The Auckland Design Office is currently exploring options on how they can support papakāinga development through their services provision.

Key priorities for the second quarter

34. Community of practice approach across all Whai: new operating practices will start to be implemented in December.

35. Māori housing – Whare for Life: work over quarter two will focus on development of the Whare for Life / Māori housing work programme, the recruitment of one new position, and the development of a toolkit to assist with papakāinga development alongside ongoing work to support Māori housing opportunities.

Summary of Whai Tiaki – Māori Cultural Well-Being

36. The Whai Tiaki programme consists of projects and initiatives that contribute to Māori cultural well-being. The narrative below provides highlights from quarter one activity.

Quarter one highlights

37. Cultural Investment Fund: A Cultural Initiatives Fund Advisor role was established to support this fund, with recruitment starting this quarter.

· Iwi engagement on Watercare Services Limited (Watercare) projects: Watercare has a policy of integrating mana whenua into its projects where mana whenua have an interest. There are currently 35 consents being applied for, all in various stages of the RMA application process, a further 22 are under assessment, which will mostly require consents as well. During this quarter the projects that mana whenua were consulted on included:

· Wastewater upgrades Clarks Beach

· Wellsford, Warkworth, Pukekohe in which consultation has been ongoing in preparation for the lodging of consent applications with the relevant regulatory authority.

· Cultural monitoring Hunua 4 project

· Warkworth Water Treatment Plant

· Tuakau Water Main /temporary consent cultural consultation/riparian planting, Wastewater Network Strategy

38. The two available Mark Ford Engineering Scholarships were awarded to Māori (one from each of the general and Māori categories). Three Māori candidates have been awarded summer internships ranging across the business. Watercare continues with its staff Te Waharoa – marae and Māori protocol workshop. Three site blessings were held for the commencement of Watercare projects at Glen Eden, Tuakau and Franklin Road. Watercare staff liaised with mana whenua and kaumatua in the preparation and participated in the site blessings. Watercare continues to expand its relationships with mana whenua to promote accessibility and engagement.

39. Māori Sites of Significance: a series of hui with mana whenua to facilitate identification of sites of significance. Sixteen iwi have signed the Statement of Work for the Māori Cultural Heritage Project. Three new kaitiaki representatives, an archaeologist and a planner are now participating in the programme / Māori Heritage Team.

40. Maramataka Toi Māori: Matariki Festival in partnership with Ngāti Paoa, concluded on the 17 July. There were 105 individual events in the festival programme presented by Auckland Council, Council-controlled Organisations (CCOs) and the community. Key events delivered in quarter one were Te Wānanga o Aotearoa Kapa Haka Super 12s, Matariki on the Move and Te Korakora on Federal. More than 115,000 people attended or participated in a festival event, with a high level of online audience engagement through the festival website and social media. Strong partnerships were developed in 2016 with Te Wānanga o Aotearoa, AMI Insurance and Skycity. Planning is underway for Empowered Māori Communities Arts and Culture programmes, due for delivery in quarter three and quarter four. Planning is also underway for Waitangi Day Family Celebrations at Hayman Park.

41. Inaugural Regional Kaitiaki Forum: Terms of Reference confirmed, Karen Wilson and Tame Te Rangi are confirmed as co-chairs. Strategic planning has begun.

42. Beneath Our Feet: planning continued this quarter. The project has support from mana whenua with agreement on a joint procurement panel. A review of the project plan has begun, along with initial discussions regarding the appointment of a project manager.

43. Para Kore Ki Tāmaki: this initiative supports the council’s journey towards a zero waste future by 2040. Ngāti Whātua is a key strategic partner. This year, 20 marae are participating in the programme. Para Kore outcomes contributed to Para Kore National winning this year’s Energy Globe Award (International Award). In quarter one, a new three-year contract has been negotiated and signed by Ngāti Whātua to continue to support marae and marae-based events to be para kore (zero waste).

Key priorities for the second quarter

44. Cultural Investment Fund: Cultural Initiatives Fund Advisor recruitment will be completed, and will be responsible for developing marae and papakāinga plans.

45. Iwi engagement on Watercare projects: continued consultation for projects where mana whenua have an interest.

46. Māori Sites of Significance: focus will be to support mana whenua to complete site assessments for approximately 250 nominated sites during quarters two and three.

47. Para Kore Ki Tāmaki: investigate opportunities to enable a wider reach across the Auckland region.

Summary of Whai Tika – Effectiveness for Māori

48. The Whai Tika programme is made up of two distinct workstreams, the Treaty Audit Response work programme, and the Effectiveness for Māori workstream.

Treaty Audit Response workstream

49. The Treaty Audit report 2015 has 24 ‘action’ groups covering specific recommendations and closure criteria for them. The Waharoa Group, comprising representatives from Te Waka Angamua, Internal Audit and the Independent Māori Statutory Board have determined that five action groups have been fully completed and a number of individual actions within other groups are complete. The table below summarises progress to date.

Table Two: Treaty Audit Response Action Groups

Action Groups

Open

Closed

Initiatives

Department/CCO Māori Responsiveness Plans

Treaty of Waitangi Settlements Implementation

Hearings Policy

Good Practice Benchmarking

Effectiveness and Compliance Framework

50. In 2015/2016 the Treaty Audit Response workstream focussed on identifying activities and owners to address recommendations, establishing a monitoring and reporting regime, and addressing key activities. Year two will focus on delivery and seek to address the majority of recommendations by June 2017. Quarter one has seen minimal progress. With a newly focussed restructured team in Te Waka Anga Mua ki Uta, there will be a renewed focus in gaining progress with the Treaty Audit Response workstream.

51. Further detail about the Treaty Audit response workstream is provided in Attachment A.

Effectiveness for Māori workstream

Māori Responsiveness Plans

52. Māori Responsiveness planning will continue to be a core activity to lift council’s performance around capacity, capability and commitments to Māori. Māori responsiveness planning is progressing steadily with six Māori Responsiveness Plans now complete and 11 in development. Of the 11, four plans (Research, Investigation and Monitoring Unit, Civil Defence, Arts, Culture and Events, People and Capability) are in the Internal Audit/Legal/Te Waka Angamua review process.

53. Further information on the Māori Responsiveness Plans can be found in Attachment B.

Quarter one highlights

54. Māori Language Policy adopted by Regional Strategy and Policy Committee in September.

55. Māori capability and employment: the Auckland Council Employment Strategy Māori (ACESM) addresses both statutory and strategic commitments of Auckland Council. The project concept paper was approved at the end of September 2016 by Te Waka Angamua.

56. Māori engagement initiative: this initiative will be established by the Principal Advisor, Māori Engagement. This role will sit in Communications and Engagement and increase Māori responsiveness by improving the Auckland Council family’s engagement with Māori. Recruitment into this role has to this point been unsuccessful however we estimate that the role will be appointed by the end of November.

57. In 2016/2017 the initiative will deliver:

· Further design of Māori Engagement Hub

· Establish networks and connections with key owners of Māori engagement

· Test new approaches

· Investigate best ways to utilise and implement the Māori Information Portal

· Identify, document and communicate learnings, insights and good practice

· Identify opportunities for scale

Key priorities for quarter two

58. Treaty Audit Response workstream: a number of Treaty Audit action groups have been progressed and are very close to completion. We expect to have three action groups completed by the end of quarter two.

59. Establish working group and review the implementation plan for Māori Language Policy

60. Improved implementation of Māori Responsiveness plans across remaining key departments and CCOs.

61. Completion and communication of key policies, including Taonga Management Policy

62. Support the establishment of the Regional Kaitiaki Forum

63. Māori capability and employment: the business case for Auckland Council Employment Strategy Māori will be submitted for approval in November and with a timeline for approval of strategy and commencement of implementation Phase One for March 2017. Key areas under consideration are:

· Raise perceptions of Auckland Council as a positive employer of Māori

· Increase understanding of factors for motivating, recruiting and attracting Māori

· Eliminate discrimination and increase levels of acceptance and respect experienced by Māori employees

· Recognise and increase Māori expertise, career development and career progression opportunities

64. Māori engagement initiative: confirm appointment of the Principal Advisor, Māori Engagement by end of November and finalise work programme.

65. Leadership Movement Programme: (formerly “Leadership Essentials”) A strategic review of this senior leadership training programme will be conducted during quarter two.

66. Akona – Māori eLearning application: eLearning specialist to be recruited in quarter two, followed by design of eLearning module content.

Summary of Whai Tahinga – Treaty of Waitangi Settlements activity

67. The Whai Tahinga programme supports the council’s engagement in Treaty settlements. The narrative below provides highlights from quarter one activity.

Quarter one highlights

68. Crown negotiations with Ngāti Whātua (Kaipara Harbour), Ngāti Rehua- Ngāti Wai ki Aotea, Ngāti Paoa and Maratūāhu Iwi Collective are progressing well.

Key priorities for the second quarter

69. There is ongoing governance work on entities such as Tūpuna Maunga Authority, Parakai, and Orākei Reserves Boards. Negotiations with Ngāti Whātua (Kaipara Harbour), Ngāti Paoa, and Maratūāhu Iwi Collective are still ongoing.

Consideration

Local board views and implications

70. Local boards will initiate planning for their three-year local board plans in quarter two. Local board advisers are ensuring the next round of local board plans more clearly articulate how they are being responsive to Māori within their communities. This includes engagement with Te Waka Anga Mua ki Uta staff through attendance at local board planning sessions across the region as required.

Māori impact statement

71. This report provides an overview of Māori transformational activity for YE17 first quarter alongside activities identified as co-governance and co-management (although as noted in Executive Summary above, quarter one financial results for co-governance and co-management arrangements are not included in this report as results have not yet been presented to the co-governance entities). These activities continue to deliver on the priorities agreed in the council’s 2015-2025 Long-term Plan.

72. The Treaty Audit response work programme is progressing, enabling the council to strengthen its responsiveness to Māori through targeted actions and improvements.

Implementation

73. The Te Toa Takitini programmes and projects for the 2016/2017 period have been signed off by the Te Toa Takitini Executive Leadership Group. Programme conveners and business owners from across the council family have responsibility for delivery. The Finance and Performance Committee receives activity and expenditure reports in April, August and November. Updates on progress are also provided at the Joint Governing Body/Independent Māori Statutory Board (IMSB) quarterly meetings.

Attachments

No.	Title	Page
a ⇩	Treaty Audit Response work programme update	207
b ⇩	Maori Responsiveness Plans	211

Signatories

Authors

Nadia Phillips - Paewhakahaere a te Paearahi Matua, Personal Assistant to Manager Māori Strategy & Relations

Doreen Christie - Programme Delivery Manager

Authorisers

Sarah Howard - General Manager Māori Responsiveness and Relationships

Phil Wilson - Governance Director

Sue Tindal - Group Chief Financial Officer

Finance and Performance Committee

13 December 2016

Third Quarterly Report on Non-Rateable Property Rating Treatment

File No.: CP2016/22795

Purpose

1. To inform the Finance and Performance Committee on the progress of the programme of work to review the rating treatment of properties currently non-rateable across Auckland.

Executive summary

2. The programme of work to review the over 10,000 non-rateable properties is on track to be completed by February 2018. The Local Government (Rating) Act 2002 defines a range of properties as non-rateable including churches and educational institutions. However, any portion of these properties used for other purposes is liable for rates.

3. The table below shows the work which needs to be undertaken and what has been completed so far, along with the nett difference in rates after adjustments are made. As at 28 October 2016, 8,935 properties have been reviewed with 14 confirmed as rateable and 2,335 requiring more detailed investigation.

Legacy	Non-rateable properties	Total reviewed	Confirmed non-rateable	Confirmed rateable	Require more investigation	Balance for review	Nett $ rates changes
ACC	3,811	2,936	2,021	8	906	871	5,468
MCC	2,495	2,335	1,743	1	591	155	24,204
NSCC	1,666	1,553	1,251	2	300	117	310,000
WCC	1,123	1,027	729	3	294	99	4,910
RDC	1,412	1,084	838	0	244	332	-
Total	10,507	8,935	6,582	14	2,335	1,574	344,582

4. Following discussion on businesses operating at residential properties at the 19 May 2016 Finance and Performance Committee meeting, our contract valuers have specifically been looking for houses with signage indicating a property may be used for purposes other than a residence, whilst performing their inspections. This occurs most frequently in ‘mixed use’ locations often on the fringe of commercial town centres and along main arterial roads.

Recommendation/s

That the Finance and Performance Committee:

a) receive the report on the progress of the review of non-rateable land rating treatment.

Comments

5. Non-rateable land is land that has a legal exemption under the Local Government Rating Act either wholly or partly from paying rates. However, owners of non-rateable land may have to pay targeted rates if:

· those targeted rates are set solely for water supply, sewage disposal or refuse collection; and

· the local authority actually provides these services to the rating unit.

6. Most cases of non-rateability are for land used for conservation, parks and reserves, council facilities, health, cemeteries and crematoria, education, religious institutions, Maori land, transport and by institutions providing free maintenance or relief of persons in need.

7. A high-level review of non-rateable properties identified a number of possible issues that require further analysis including:

· reserves and other land in private ownership require verification of non-rateable status.

· DHB/university and schools/council properties require verification that shops, banks etc within them are treated as fully rateable.

· government land requires verification of use to confirm whether rateable/non-rateable.

· churches require verification that areas not used primarily as places of worship are treated as rateable.

· different rating treatment of QE2 conservation land - rateable with 100% remission in some former council areas, non-rateable in others.

8. The first stage of the review identified 10,507 rating units under eleven broad categories which have part or full non-rateability under Schedule 1 of the Local Government Rating Act 2002. Auckland Council owns 6,924 of these properties, most of which are non-rateable as reserves. A full breakdown by category and legacy area is:

Category	ACC	MCC	NSCC	RDC	WCC	TOTAL
Auckland Council	2,112	1,855	1,280	895	782	6,924
Airport	1	1	-	-	-	2
Cemetery	19	12	5	29	1	66
Community	22	15	3	3	3	46
Education	527	218	134	90	124	1,093
Government	423	86	71	249	36	865
Health	143	46	43	25	50	307
Maori	88	17	1	29	4	139
Privately owned	20	8	13	14	7	62
QE2	10	-	-	-	-	10
Religious	446	237	116	78	116	993
TOTAL	3,811	2,495	1,666	1,412	1,123	10,507

9. The table below shows what has been completed so far, along with the nett difference in rates after adjustments made. As at 28 October 2016, 8,935 properties have been reviewed with 14 confirmed as rateable and 2,335 requiring more detailed investigation.

Legacy	Non-rateable properties	Total reviewed	Confirmed non-rateable	Confirmed rateable	Require more investigation	Balance for review	Nett $ rates changes
ACC	3,811	2,936	2,021	8	906	875	5,468
MCC	2,495	2,335	1,743	1	591	160	24,204
NSCC	1,666	1,553	1,251	2	300	113	310,000
WCC	1,123	1,027	729	3	294	99	4,910
RDC	1,412	1,084	838	-	244	332	-
Total	10,507	8,935	6,582	14	2,335	1,574	344,582

10. Since the last report (in August 2016)

· The number of properties reviewed has increased from 8,076 to 8,935.

· Properties confirmed non-rateable have increased from 6,132 to 6,582.

· The balance to review has decreased from 2,540 to 1,574.

· A substantial amount of preparatory work has also been done for the review of properties used for religious worship and education purposes.

11. A detailed breakdown of the findings to date by property type is as follows:

Auckland Council Properties

· The initial review of properties owned by Auckland Council has now been completed.

· 6,924 properties reviewed (majority are parks and reserves).

· 6,109 confirmed as correctly non-rateable.

· Of the remainder

o 357 already have split assessments (for rateable and non-rateable use) and will need to be reviewed by valuers

o 203 have lease agreements (usually for community organisations like sports clubs) and will need to be reviewed separately

o 255 require further investigation

o No further properties in this category have been identified as incorrectly treated as non-rateable.

Religious Use

· The Local Government Rating Act allows non-rateability for land used for worship or religious education. Areas used for other activities like administration and accommodation are fully rateable and split valuations allow us to rate them separately.

· 993 properties have been identified as currently part or fully non-rateable for religious use.

· A letter has been issued to these organisations explaining our review and policy. They have been requested to return a form detailing uses on their property. This information will be used in conjunction with valuer inspections to confirm that these properties are correctly rated.

· No properties in this category have been identified as incorrectly treated as non-rateable.

Commercial Properties

· Following discussion on businesses operating at residential properties at the 19 May 2016 Finance and Performance Committee meeting, our contract valuers have specifically been looking for houses with signage indicating a property may be used for purposes other than a residence, whilst performing their inspections. This occurs most frequently in ‘mixed use’ locations, often on the fringe of commercial town centres and along main arterial roads.

· Year to date we have identified a total of 39 properties which fit the above criteria. Due to these changes, we had an additional $19,000 (approx.) of additional rates revenue.

Next Priorities

· Complete investigation of religious use properties.

· Investigate remaining education properties.

12. The Rates Team is working closely with the Policy Team and Customer Services to ensure alignment and a standardised approach when communicating with ratepayers on any changes required.

Consideration

Local board views and implications

13. The previous quarterly report was forwarded to all local boards for information, requesting their support in identifying non-rateable properties for review.

· A query was received about non-worship activities operated by the Destiny Church at 25 Druces Road, Manukau. The property has a split rating treatment allowing the church and school to be non-rateable while a gym, daycare and medical centre are fully rateable

· We received advice that the Lord’s Church in Mangere Bridge runs a number of activities (including childcare) in addition to worship. This church is part of our review of properties used for religious purposes and will be reassessed as part of this process to ensure it is correctly rated.

Māori impact statement

14. The rules for rating Māori customary land, land that is set apart under section 338 of Te Ture Whenua Māori Act 1993 and Māori freehold land are more complex than for general land. Staff are undertaking a separate review of Māori land data that will be completed by 30 June 2018.

15. Māori, as stakeholders in the council are affected and have an interest in any review of non-rateable land.

Implementation

16. There will be cases where a property has both rateable and non-rateable components. If a property (or a portion of) that was classified as non-rateable is found to be rateable, the council can recover rates from the beginning of the current rating year. If a property (or a portion of) that was classified as rateable is found to be non-rateable, the council is liable to refund rates paid for the previous five rating years.

17. A communication plan has been put in place to liaise with impacted ratepayers.

Attachments

There are no attachments for this report.

Signatories

Author

Deborah Acott, Head of Rates, Valuations & Data Management

Authorisers

John Bishop - Treasurer & GM Transaction Services

Sue Tindal - Group Chief Financial Officer

Finance and Performance Committee

13 December 2016

Auckland Council's submission on the Rates Rebate (Retirement Village Residents) Amendment Bill

File No.: CP2016/24069

Purpose

1. To endorse Auckland Council’s submission on the Rates Rebate (Retirement Village Residents) Amendments Bill.

Executive summary

2. The Bill (Attachment A) provides for residents of retirement villages with occupation rights agreements to be eligible for a rates rebate. The Bill was introduced on 5 May 2016, received its first reading on 9 November 2016 and submissions will close on 12 January 2017. The Local Government and Environment Select Committee is due to report on 9 May 2017.

3. Auckland Council’s draft submission (Attachment B) supports the Bill as it will provide for equitable treatment of ratepayers whether they own their property in fee simple or have an occupation rights agreement or licence to occupy.

4. If the Bill is passed the council could remove the Remission for residents of licence to occupy retirement villages and Papakāinga housing scheme with a saving over ten years of approximately $5.5 million.

5. The submission seeks amendments to include:

· residents of Papakainga Housing with occupation rights agreements as eligible ratepayers

· water and wastewater charges levied by CCOs (for Auckland Council, Watercare Services Limited) in the calculation of entitlement for a rates rebate.

6. If the second amendment proposed above is adopted the council could remove the Remission of rates to top-up the rates rebate scheme with a saving over ten years of approximately $1.8 million.

7. Staff seek the committee’s direction on whether or not the council wishes to appear before the select committee.

Recommendation/s

That the Finance and Performance Committee:

a) endorse the Auckland Council submission on the Rates Rebate (Retirement Village Residents) Amendment Bill (Attachment B to the agenda report).

b) delegate authority to the Chair and Deputy Chair of the Finance and Performance Committee to approve any final amendments to the submission resulting from changes agreed at the meeting and/or any minor editorial changes.

Comments

Rates Rebate Act 1973

8. The rates rebate scheme was introduced in 1973 to allow ratepayers of residential properties who are on low incomes to receive a rebate on their rates. This was before the expansion of retirement villages and occupation right agreements (ORAs). Residents of retirement villages with ORAs pay rates but, in most circumstances, pay indirectly (i.e. to the retirement village owner) rather than directly to the local authority. Under the Rates Rebate Act 1973, these residents are not entitled to a rates rebate. Councils administer the rate rebate scheme on behalf of the Department of Internal Affairs. The maximum value of the rebate is $610 for 2016/2017.

Submission

9. The draft submission supports the Bill’s intention to address equity in the treatment of ratepayers. The council is seeking two amendments to the Bill which are discussed below.

Inclusion of residents of Papakainga housing

10. The draft submission seeks amendment of the Bill to include Papakainga housing with occupation right agreements. This would ensure these ratepayers are treated equitably with the owners who hold their properties in fee simple.

11. In many parts of Auckland and presumably wider New Zealand development is progressing of Papakainga housing. Properties developed on this land may not be owned by the occupants but they may be liable for the rates under their agreements with the owners. As they are not the ratepayer they will not be eligible under the amended Rates Rebate Act.

Inclusion of water and wastewater charges in calculation of rates rebate entitlement

12. The draft submission seeks amendment of the Bill to include water and wastewater charges levied by CCOs in the calculation of entitlement for submissions. This would treat all ratepayers across the country equitably no matter how their council decided to provide for water and wastewater services.

13. The costs of providing water and wastewater services in Auckland are recovered by direct charges from Watercare Services Limited. As these are not a rate they are not included in the calculation of entitlement to the rebate for Auckland ratepayers. All other councils recover these costs through a rate and this is therefore included in the calculation of entitlement for the rates rebate. Auckland Council offers a remission to top-up the rates rebate for water and wastewater charges. The council provided ratepayers with $210,000 (including GST) of remissions under this policy in 2015/2016.

Implications for Auckland

14. The council offers a rates remission for residents of licence to occupy retirement villages. A licence to occupy is the same as an occupation right agreement. All ratepayers who would qualify for a rates rebate are provided with a remission of $508. This is the value of the 2016/2017 uniform annual general charge (UAGC) $394, and the Interim Transport Levy (ITL), $114. The council provided 1,365 ratepayers with $680,000 (including GST) of remissions under this policy in 2015/2016. The saving over ten years would be approximately $5.5 million.

15. The council will be able to remove the remission scheme if the Government passes the Bill with the amendments we are seeking for Papakainga housing. If the Bill passes without the amendment we would retain the scheme solely for Papakainga housing.

16. Staff note that the sum of the remission provided by the council is not aligned with their entitlement under the rates rebate scheme. As a result some ratepayers receive more and others less than they would under the rates rebate scheme. When the scheme is repealed on passage of the Bill some ratepayers presently receiving the remission will be better off and others worse off.

17. The council will also be able to remove the Rates rebate top-up remission if the amendment sought is accepted. The entitlement provided under this remission is equivalent to a ratepayer’s entitlement under the rates rebate scheme. Ratepayers in receipt of this remission will not be affected if the amendment is accepted and the council removes its remission. The council would save $180,000, or $1.8 million over ten years.

Consideration

Local board views and implications

18. Local boards have been provided with a memorandum setting out the issues and inviting them to provide input which would be attached to the council submission and incorporated as appropriate.

Māori impact statement

19. The proposed submission supports residents of Papakainga housing being treated equitably in regard to eligibility for the rates rebate scheme with ratepayers who own their property in fee simple or who occupation rights agreements in retirement villages.

Attachments

No.	Title	Page
a ⇩	Rates Rebate (Retirement Village Residents) Amendment Bill	229
b ⇩	Submission to the Local Government and Environment Committee Rates Rebate (Retirement Village Residents) Amendment Bill	233

Signatories

Author

Andrew Duncan - Manager Financial Policy

Authorisers

Matthew Walker - GM Financial Strategy and Planning

Sue Tindal - Group Chief Financial Officer

Finance and Performance Committee

13 December 2016

Budget update December 2016

File No.: CP2016/23331

Purpose

1. To approve an additional budget for the Howick Local Board by-election, and to agree to release funding to upgrade Putney Way in the Transform Manukau project area.

Executive summary

By-election for Howick Local Board

2. A vacancy has occurred for a Howick Local Board member elected in the Botany subdivision following the resignation of Lucy Schwaner at the inaugural meeting of the local board. The Local Electoral Act 2001 requires an election to be held to fill the vacancy. The earliest date the election can take place is 17 February 2017.

3. The cost of conducting the by-election is estimated at $104,000, mainly for voting packs, postage and ballot box management. The final cost will depend on voter turnout. This cost may be absorbed partially or fully within the existing budget for the 2016 elections. Staff will only be able to ascertain the final account for the 2016 elections in March 2017, due to contractual arrangements.

4. Staff recommend the committee approve an additional operating budget of up to $104,000.

Putney Way streetscape upgrade (Transform Manukau)

5. In April 2016, the council adopted the High Level Project Plan (HLPP) for Transform Manukau led by Panuku Development Auckland (Panuku). The council agreed in principle to re-invest proceeds from sales of development sites within the transform area, into initiatives progressing the intent of Transform Manukau HLPP. This is subject to a detailed business case, due to be considered by the council in April 2017.

6. Through the 2016/2017 Annual Plan, the council set aside $20 million capital budget over the next three years to support early transformation projects ahead of major cash inflow from the property sales. The drawdown of the $20 million is subject to the same business case in April 2017.

7. Putney Way is a key pedestrian link within the central part of the Transform Manukau project area. The streetscape upgrade is part of the Spatial Priority Area initiatives. Panuku identifies it as the first and high priority public good project within Transform Manukau.

8. Panuku board approved $2.7 million for Putney Way upgrade to be delivered concurrently with the new bus station, which Auckland Transport is constructing and will be positioned fronting onto Putney Way adjacent to the train station. The timing of the upgrade alongside the new bus station construction would minimise disruptions and be more cost effective. The Ōtara-Papatoetoe Local Board supports this.

9. The concurrent delivery of both the new bus station and the streetscape upgrade will require releasing $2.7 million funding from the existing budget, ahead of the council’s consideration of the Transform Manukau business case. Panuku board is seeking the approval of this committee.

Recommendation/s

That the Finance and Performance Committee:

a) approve an additional operating budget of up to $104,000 in the 2016/2017 financial year to conduct a by-election for a Howick Local Board member to be elected from the Botany subdivision.

b) approve the release of $2.7 million from the existing budget for Putney Way streetscape upgrade, ahead of the Transform Manukau business case currently being developed.

Comments

By-election for Howick Local Board

Background

10. On 3 November 2016, Lucy Schwaner, who was elected on the Howick Local Board – Botany Subdivision, resigned. This created an extraordinary vacancy. The Local Electoral Act 2001 requires an election to be held to fill the vacancy. A by-election must be held no earlier than 17 February the following year, where an extraordinary vacancy occurs between 28 September and 20 November (section 138A, Local Electoral Act 2001).

11. A by-election will therefore occur on Friday 17 February 2017, with the following applicable dates:

· Public notice of by-election Wednesday 23 November 2016

· Nominations open Thursday 24 November 2016

· Nominations close noon, Thursday 22 December 2016

· Delivery of voting packs Thursday 26 January 2017

· Close of voting noon, Friday 17 February 2017.

Estimated costs

12. The total estimated cost to run the by-election is $104,000 excluding GST. It is based on:

· an estimate provided by the council’s election services provider, Independent Election Services, for managing and processing votes based on 37,000 electors and a 30 per cent voter turnout, and

· an estimate of costs related to communications, marketing and ballot box management, which does not include internal staff time.

13. The total estimate is broken down as follows.

	Amount (excluding GST)
Independent Election Services
Postage	$25,500
Voting packs (ordinary and special)	$31,375
Labour, administration, electoral roll, IT operations	$23,625
Insurance	$2,250
Public notices (based on Eastern Courier only)	$2,250
Sub-total 1	$85,000
Other costs
Advertising	$9,100
Social media and website	$7,500
Contingency	$2,400
Sub-total 2	$19,000
Total cost	$104,000

Funding

14. The by-election is unbudgeted. However, the intention is to absorb this cost within the existing budget for 2016 elections where possible.

15. The final cost of the 2016 election against budget will become known in March 2017, when the full account is settled between Independent Election Services and the council, and the share of the costs for District Health Boards and Licensing Trusts is determined.

16. Staff recommend that the committee approve an additional operating budget of up to $104,000 to conduct the by-election. If approved, finance staff will adjust the budget in a way that ensures the provision matches the actual shortfall.

Putney Way streetscape upgrade (Transform Manukau)

Background

17. In April 2016, the council adopted the High Level Project Plan (HLPP) for Transform Manukau and confirmed Panuku as the lead council agency for the Manukau regeneration project. The council approved the disposal of a number of council-owned properties within the Transform Manukau project area, and agreed in principle to re-invest the proceeds into initiatives progressing the intent of Transform Manukau HLPP. This is subject to a detailed business case for the new investments. The business case is due to be considered by the council in April 2017.

18. When adopting the 2016/2017 Annual Plan, the council set aside $20 million capital budget over the next three years to support early transformation projects ahead of major cash inflow from the property sales. The drawdown of the $20 million is contingent on the same business case due for consideration in April 2017.

Scope

19. Putney Way is a key pedestrian link within the central part of the Transform Manukau project area, connecting Manukau train station through to the Manukau Plaza and Westfield Shopping Centre. The streetscape upgrade is part of the Spatial Priority Area initiatives.

20. In November, Panuku board approved approximately $2.7 million for Putney Way streetscape upgrade. The total consists of $2.4 million for construction cost and $0.3 million for fees associated with design, consent and procurement.

21. Panuku identifies Putney Way as the first and high priority public good project within Transform Manukau. The enhanced design for Putney Way would contribute to the pedestrian priority street approach that is sought in the vision and goals of the project and HLPP documents.

Timing

22. Before Panuku embarked on the HLPP for Transform Manukau, Auckland Transport was developing the proposal for a new Manukau bus station. This project of over $30 million has been approved and will be constructed between November 2016 and November 2017. It is positioned fronting onto Putney Way adjacent to the Manukau Institute of Technology (MIT) /Manukau train station. The bus station project includes an upgrade of the immediate road frontage footpaths, but does not include an upgrade of Putney Way itself.

23. Panuku has worked closely with Auckland Transport to ensure that the street upgrade can be delivered at the same time, and, as part of the bus station project. The intention is to deliver the streetscape and the bus station in time for the planned operational opening day in November 2017. This timing would minimise disruptions and be more cost effective. This reflects an integrated and partnership approach to projects within Auckland Council group. It would result in a holistic land-use and transport-integrated outcome that will provide strong public realm amenity to further encourage high quality urban development to take place on council’s other adjacent properties.

Preferred option

24. Panuku board is requesting the council’s approval for releasing $2.7 million from the existing budget to allow the Putney Way project to be delivered concurrently with the bus station. The request will not result in any additional impact on the budget. However, it is asking the council to make an individual project investment decision, ahead of the consideration of the overall business case for Transform Manukau.

Overall budget impact

25. The table below shows the financial impacts of the budget changes considered in this report. The impacts include:

· up to $104,000 increase in net borrowing for 2016/2017

· up to $106,000 impact on the group operating result for 2016/2017

· $9,000 additional general rates requirement for 2017/2018.

Estimated financial impacts on Auckland Council Group

$000	Closing Group Net Borrowing	Group Net Surplus/(Deficit) After Tax	General Rates		Cumulative % rates increase
	2016/2017	2016/2017	2017/2018	% increase	Cumulative % rates increase
Annual Plan 2016/2017	8,435,972	330,000	1,555,982		3.5000%
Cumulative impact from decisions since 1 July 2016	510	(521)	80	0.0054%
Current position	8,436,482	329,479	1,556,062		3.5054%
December proposals
Howick Local Board by-election	104	(106)	9	0.0006%
Putney Way streetscape upgrade commitment	0	0	0	0.0000%
Potential Position	8,436,586	329,372	1,556,071		3.5060%

Consideration

Local board views and implications

By-election for Howick Local Board

26. The by-election is for the position of a local board member and must be conducted by law.

Putney Way streetscape upgrade (Transform Manukau)

27. Panuku has engaged regularly with the Ōtara-Papatoetoe Local Board and its Chair on Putney Way in context of Transform Manukau planning over the past six months. During these sessions concept designs, anticipated timelines and engagement plans have been shared and discussed.

28. The local board strongly supports Transform Manukau and the new bus station Projects. In conjunction with this, and to complement these projects, it also supports the Putney Way streetscape upgrade project. The local board is supportive of the integrated, partnership and holistic approach to land use planning, development and design, which is coordinated and aligned with other council investments and public realm enhancements.

Māori impact statement

By-election for Howick Local Board

29. The 2016 local government election arrangements for recognising Māori will apply to this by-election. These arrangements include provision for using Te Reo Māori in candidate profile statements.

Putney Way streetscape upgrade (Transform Manukau)

30. The primary bus station project, including its streetscape, has had full involvement of mana whenua iwi throughout the design and development phases. This includes the design of Putney Way.

Implementation

31. Budgets would be amended in core financial systems and would be used for internal management reporting, regular reporting to council committees and financial control for the 2016/2017 financial year.

Attachments

There are no attachments for this report.

Signatories

Author

Neil Huang - Principal Advisor

Authorisers

Robert Irvine - Head of Group Financial Planning

Matthew Walker - GM Financial Strategy and Planning

Sue Tindal - Group Chief Financial Officer

Chairperson	Ross Clow
Deputy Chairperson	Desley Simpson, JP
Members	Cr Dr Cathy Casey	Cr Mike Lee
	Deputy Mayor Bill Cashmore	Cr Daniel Newman, JP
	Cr Fa’anana Efeso Collins	Cr Dick Quax
	Cr Linda Cooper, JP	Cr Greg Sayers
	Cr Chris Darby	Cr Sharon Stewart, QSM
	Cr Alf Filipaina	IMSB Member David Taipari
	Cr Hon Christine Fletcher, QSO	Cr Sir John Walker, KNZM, CBE
	Mayor Hon Phil Goff, JP	Cr Wayne Walker
	Cr Richard Hills	Cr John Watson
	IMSB Member Terrence Hohneck
	Cr Penny Hulse
	Cr Denise Lee

No.	Title	Page
a ⇩	ACIL first quarter report period ending 30 Sept 2016	27
b ⇩	AT first quarter report period ending 30 Sept 2016	39
c ⇩	ATEED first quarter report period ending 30 Sept 2016	63
d ⇩	Panuku first quarter report period ending 30 Sept 2016	97
e ⇩	RFA first quarter report period ending 30 Sept 2016	121
f ⇩	Watercare first quarter report period ending 30 Sept 2016	139