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

 

Date:

Time:

Meeting Room:

Venue:

 

Tuesday, 21 August 2018

9.30am

Reception Lounge
Auckland Town Hall
301-305 Queen Street
Auckland

 

Komiti ā Pūtea, ā Mahi Hoki /
Finance and Performance Committee

 

OPEN AGENDA

 

 

MEMBERSHIP

 

Chairperson

Cr Ross Clow

 

Deputy Chairperson

Cr Desley Simpson, JP

 

Members

Cr Josephine Bartley

IMSB Member Terrence Hohneck

 

Cr Dr Cathy Casey

Cr Penny Hulse

 

Deputy Mayor Bill Cashmore

Cr Mike Lee

 

Cr Fa’anana Efeso Collins

Cr Daniel Newman, JP

 

Cr Linda Cooper, JP

Cr Greg Sayers

 

Cr Chris Darby

Cr Sharon Stewart, QSM

 

Cr Alf Filipaina

IMSB Chair David Taipari

 

Cr Hon Christine Fletcher, QSO

Cr Sir John Walker, KNZM, CBE

 

Mayor Hon Phil Goff, CNZM, JP

Cr Wayne Walker

 

Cr Richard Hills

Cr John Watson

 

 

 

 

(Quorum 11 members)

 

 

 

Sandra Gordon

Senior Governance Advisor

 

14 August 2018

 

Contact Telephone: (09) 890 8150

Email: sandra.gordon@aucklandcouncil.govt.nz

Website: www.aucklandcouncil.govt.nz

 

 


 


 

Terms of Reference

 

Responsibilities

 

The purpose of the Committee is to:

(a)  control and review expenditure across the Auckland Council Group to improve value for money

(b)  monitor the overall financial management and performance of the council parent organisation and Auckland Council Group

(c)   make financial decisions required outside of the annual budgeting processes

 

Key responsibilities include:

·         Advising and supporting the mayor on the development of the Long Term Plan (LTP) and Annual Plan (AP) for consideration by the Governing Body including:

o   Local Board agreements

o   Financial policy related to the LTP and AP

o   Setting of rates

o   Preparation of the consultation documentation and supporting information, and the consultation process, for the LTP and AP

·         Monitoring the operational and capital expenditure of the council parent organisation and Auckland Council Group, and inquiring into any material discrepancies from planned expenditure

·         Monitoring the financial and non-financial performance targets, key performance indicators, and other measures of the council parent organisation and each Council Controlled Organisation (CCO)  to inform the Committee’s judgement about the performance of each organisation

·         Advising the mayor on the content of the annual Letters of Expectations (LoE) to CCOs

·         Exercising relevant powers under Schedule 8 of the Local Government Act 2002, which relate to the Statements of Intent of CCOs

·         Exercising Auckland Council’s powers as a shareholder or given under a trust deed, including but not limited to modification of constitutions and/or trust deeds, granting shareholder approval of major transactions where required, exempting CCOs, and approving policies relating to CCO and CO governance

·         Approving the financial policy of the Council parent organisation

·         Establishing and managing a structured approach to the approval of non-budgeted expenditure (including grants, loans or guarantees) that reinforces value for money and an expectation of tight expenditure control

·         Write-offs

·         Acquisition and disposal of property, in accordance with the long term plan

·         Recommending the Annual Report to the Governing Body

·         Te Toa Takatini

 

 

 

 


 

Powers

 

(a)  All powers necessary to perform the committee’s responsibilities, including:

a.    approval of a submission to an external body

b.    establishment of working parties or steering groups.

(b)  The committee has the powers to perform the responsibilities of another committee, where it is necessary to make a decision prior to the next meeting of that other committee.

(c)   The committee does not have:

a.    the power to establish subcommittees

b.    powers that the Governing Body cannot delegate or has retained to itself (section 2).

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Exclusion of the public – who needs to leave the meeting

 

Members of the public

 

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

 

Those who are not members of the public

 

General principles

 

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

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

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

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

 

Members of the meeting

 

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

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

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

 

Independent Māori Statutory Board

 

·           Members of the Independent Māori Statutory Board who are appointed members of the committee remain.

·           Independent Māori Statutory Board members and staff remain if this is necessary in order for them to perform their role.

 

Staff

 

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

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

 

Local Board members

 

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

 

Council Controlled Organisations

 

·           Representatives of a Council Controlled Organisation can remain only if required to for discussion of a matter relevant to the Council Controlled Organisation.

 

 

 


Finance and Performance Committee

21 August 2018

 

ITEM   TABLE OF CONTENTS                                                                                         PAGE

1          Apologies                                                                                                                        9

2          Declaration of Interest                                                                                                   9

3          Confirmation of Minutes                                                                                               9

4          Petitions                                                                                                                          9  

5          Public Input                                                                                                                    9

6          Local Board Input                                                                                                          9

7          Extraordinary Business                                                                                              10

8          Council-controlled Organisations - Approval of 2018-2021 Statements of Intent 11

9          Ports of Auckland Limited - proposed shareholder feedback on the draft Statement of Corporate Intent                                                                                                    189

10        Land acquisition in North Takanini                                                                         219

11        Finance and Performance Committee - Information Report - 21 August 2018  223  

12        Consideration of Extraordinary Items 

PUBLIC EXCLUDED

13        Procedural Motion to Exclude the Public                                                               225

C1       CONFIDENTIAL: Land acquisition in North Takanini                                            225  

 


1          Apologies

 

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

 

 

2          Declaration of Interest

 

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

 

 

3          Confirmation of Minutes

 

That the Finance and Performance Committee:

a)         confirm the ordinary minutes of its meeting, held on Tuesday, 24 July 2018 as a true and correct record.

 

 

4          Petitions

 

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

 

 

5          Public Input

 

Standing Order 7.7 provides for Public Input.  Applications to speak must be made to the Governance Advisor, in writing, no later than one (1) clear working day prior to the meeting and must include the subject matter.  The meeting Chairperson has the discretion to decline any application that does not meet the requirements of Standing Orders.  A maximum of thirty (30) minutes is allocated to the period for public input with five (5) minutes speaking time for each speaker.

 

At the close of the agenda no requests for public input had been received.

 

 

6          Local Board Input

 

Standing Order 6.2 provides for Local Board Input.  The Chairperson (or nominee of that Chairperson) is entitled to speak for up to five (5) minutes during this time.  The Chairperson of the Local Board (or nominee of that Chairperson) shall wherever practical, give one (1) day’s notice of their wish to speak.  The meeting Chairperson has the discretion to decline any application that does not meet the requirements of Standing Orders.

 

This right is in addition to the right under Standing Order 6.1 to speak to matters on the agenda.

 

At the close of the agenda no requests for local board input had been received.

 


 

 

7          Extraordinary Business

 

Section 46A(7) of the Local Government Official Information and Meetings Act 1987 (as amended) states:

 

“An item that is not on the agenda for a meeting may be dealt with at that meeting if-

 

(a)        The local  authority by resolution so decides; and

 

(b)        The presiding member explains at the meeting, at a time when it is open to the public,-

 

(i)         The reason why the item is not on the agenda; and

 

(ii)        The reason why the discussion of the item cannot be delayed until a subsequent meeting.”

 

Section 46A(7A) of the Local Government Official Information and Meetings Act 1987 (as amended) states:

 

“Where an item is not on the agenda for a meeting,-

 

(a)        That item may be discussed at that meeting if-

 

(i)         That item is a minor matter relating to the general business of the local authority; and

 

(ii)        the presiding member explains at the beginning of the meeting, at a time when it is open to the public, that the item will be discussed at the meeting; but

 

(b)        no resolution, decision or recommendation may be made in respect of that item except to refer that item to a subsequent meeting of the local authority for further discussion.”

 

 

 


Finance and Performance Committee

21 August 2018

 

Council-controlled Organisations - Approval of 2018-2021 Statements of Intent

 

File No.: CP2018/12108

 

  

Te take mō te pūrongo / Purpose of the report

1.       To approve the statements of intent for Auckland Council’s five substantive council-controlled organisations, and three legacy council-controlled organisations. 

Whakarāpopototanga matua / Executive summary

2.       The statement of intent sets out the objectives and activities of each council-controlled organisation for the next three years. Following the council’s letters of expectations in January 2018, and shareholder comments on the draft statements of intent in April 2018, the council-controlled organisations submitted their final statements of intent for 2018-2021 in June 2018.

3.       Staff have reconciled the final statements of intent against the shareholder comments for each of the five substantive council-controlled organisations and recommend that they are approved.

4.       The council has also received statements of intent from three legacy council-controlled organisations. Staff recommend that the statements of intent for the Community Education Trust Auckland and the Contemporary Art Foundation are approved.

5.       The statement of intent for the Māngere Mountain Education Trust needs further refinement before it can be finalised. This is due to needing to refine the deliverables and performance targets following the provision of increased funding through the Long-term Plan 2018-2028. A final statement of intent will be provided to the Finance and Performance Committee in October 2018.

6.       The council is a minority shareholder in the Tamaki Regeneration Company (TRC). TRC is a crown entity and is required to have a statement of intent. The Minister of Housing and Urban Development has approved an extension of the deadline for TRC to submit its statement of intent to Auckland Council and the Crown.

 

Ngā tūtohunga / Recommendation/s

That the Finance and Performance Committee:

a)      approve the statements of intent for Auckland Transport, Watercare Services Limited, Auckland Tourism, Events and Economic Development Limited, Regional Facilities Auckland and Panuku Development Auckland Limited for 2018-2021

b)      agree that a letter be sent to Auckland Transport seeking greater alignment through the review of the Roads and Streets Framework

c)      approve the statements of intent for the Community Education Trust Auckland and the Contemporary Art Foundation for 2018-2021

d)      note that the statement of intent for the Māngere Mountain Education Trust for 2018-2021 will be provided to this committee for its approval in October 2018

e)      note that the Minister of Housing and Urban Development has approved an extension of the deadline for the Tamaki Regeneration Company to submit its statement of intent to Auckland Council and the Crown, using his power under the Crown Entities Act 2004.

 

Horopaki / Context

Statement of intent process

Substantive council-controlled organisations

7.       The statement of intent sets out the objectives and activities of each council-controlled organisation for the next three years. It serves as a basis for accountability to the council, as the shareholder, and provides an opportunity for the council to influence each organisation’s direction. The requirements for statements of intent are set out in the Local Government Act 2002 (LGA) in Schedule 8.

8.       The council sent a letter of expectation to each of the five substantive council-controlled organisations in January 2018. Each of the council-controlled organisations provided draft statements of intent on 1 March 2018. The council considered its comments on these draft statements of intent on 17 April 2018 and advised the organisations of these comments. On 30 June 2018 the council-controlled organisations provided council with their final board-approved statements of intent.

9.       Under the LGA, the council has the ability to modify a statement of intent to ensure it adequately reflects the council’s strategic priorities if it considers that is necessary.

10.     Auckland Council Investments Limited (ACIL) provided a draft statement of intent to the council. However, following the decision by Auckland Council to transfer ACIL’s assets to the council and disestablish it (which is likely to happen in September when its final reports have been prepared), the statement of intent is no longer applicable. There is a separate report on this agenda covering Ports of Auckland Limited’s statement of corporate intent.

Legacy council-controlled organisations

11.     The legacy council-controlled organisations also provided draft statements of intent to the council on 1 March 2018. The Community Education Trust Auckland (COMET Auckland) submitted a final statement of intent, while the Contemporary Art Foundation’s is unchanged from the draft version.

12.     The Māngere Mountain Education Trust (MMET) has not submitted a final statement of intent for 2018-2021. The deliverables and performance targets need to be refined following the increased funding allocated in the Long-term Plan 2018-2028. A final statement of intent will be provided to the Finance and Performance Committee in October 2018. Because of this, it will not meet the statutory timeframes.

Tamaki Regeneration Company

13.     Auckland Council and the Crown are shareholders of the Tamaki Regeneration Company (TRC).  The Crown has the controlling share in TRC, which is a crown entity. 

14.     In accordance with the Crown Entities Act 2004, the Minister of Housing and Urban Development has extended the deadline for TRC to submit its statement of intent until 1 October 2018. This is because of the government’s intended significant changes to the nature and scope of TRC’s functions. Staff will report on TRC’s statement of intent when it is submitted.

Approval of Statements of Intent 2018-2021

15.     Staff have reconciled shareholder comments against the final statements of intent and the Long-term Plan 2018-2028. This reconciliation is provided at Attachment A.


 

16.     Staff consider that no major modifications are required for the statements of intent, however there is some discussion in the following sections about areas where further work is required over the next year. The statements of intent are provided in attachments B–F. 

·   Auckland Transport (Attachment B)

·   Watercare Services Limited (Attachment C)

·   Panuku Development Auckland Limited (Attachment D)

·   Auckland Tourism, Events and Economic Development Limited (Attachment E)

·   Regional Facilities Auckland (Attachment F).

Auckland Transport

17.     Auckland Transport has substantially addressed the shareholder comments.

18.     In the shareholder comments, the council stated that a number of Auckland Transport’s performance measures should be amended or added. The statement of intent identifies a number of areas which Auckland Transport proposes to work on through the year to develop new or improved measures. In addition, the reconciliation table (Attachment A) notes a number of measures which have not been substantially changed as requested. Staff intend to work closely with each of the CCOs over the next year to review their performance measures in advance of the 2019-2022 statement of intent, as one of the final workstreams in the CCO accountability review.

19.     In the shareholder comments, the council also sought a commitment from Auckland Transport to applying the Roads and Streets Framework as a way of reallocating road space to more efficient modes of transport. The final statement of intent refers on page 19 to “reviewing the emerging financial implications of the Roads and Streets Framework”. So that the council can understand what Auckland Transport means by this, and how Auckland Transport is responding over time to the overall aim of reallocating road space appropriately, we recommend that the council be part of any review. This will allow the council to work with Auckland Transport on the application of the Roads and Streets Framework, including how it engage with the community on changes and any financial implications.

20.     Staff consider that no formal modifications are required to the Auckland Transport statement of intent. However, a letter should be prepared from council to Auckland Transport identifying the review of the Roads and Streets Framework and performance measures as areas in which the two organisations should work closely to achieve greater alignment during 2018/2019. The next Auckland Transport statement of intent should reflect this alignment. 

Auckland Tourism, Events and Economic Development Limited

21.     Auckland Tourism, Events and Economic Development Limited (ATEED) has substantially revised its statement of intent since March 2018. ATEED has proposed a new set of aggregated performance measures. Staff have some residual concerns about the methodology for calculating the measures, but do not recommend any further changes to the statement of intent at this point. Instead, staff will work with ATEED over the next year in the review of the performance measures.

Legacy council-controlled organisations

22.     Staff have reviewed the final statements of intent of two of the legacy council-controlled organisations, the Community Education Trust Auckland (COMET Auckland) and the Contemporary Art Foundation and recommend that they are approved. COMET Auckland has addressed all of the shareholder comments.

Ngā whakaaweawe ā-rohe me ngā tirohanga a te poari ā-rohe /
Local impacts and local board views

23.     The Governing Body has allocated responsibility for the governance of council-controlled organisations to the Finance and Performance Committee. 

24.     The reconciliation exercise between the final statements of intent and the shareholder comments ensured that issues relating to local boards were addressed as required in the shareholder comments. 

Tauākī whakaaweawe Māori / Māori impact statement

25.     The statements of intent contain each council-controlled organisation’s contribution to Māori outcomes. The performance of each CCO on these issues is reported on each quarter.

26.     The Independent Māori Statutory Board was consulted on the final statements of intent, and has confirmed that the issues it raised in the shareholder comments have been addressed.

Ngā ritenga ā-pūtea / Financial implications

27.     There are no financial implications associated with these decisions.

Ngā raru tūpono / Risks

28.     There is a risk that because MMET will not have a statement of intent, it will not be clear about what it needs to deliver. However, staff consider that this can be mitigated by working closely with the board of MMET to develop the statement of intent, and that it is more appropriate to ensure that it is carried out correctly.

Ngā koringa ā-muri / Next steps

29.     If the committee approves the statements of intent each of the substantive council-controlled organisations will report on their performance every quarter. The first reports will be presented to the committee in November 2018. 

Ngā tāpirihanga / Attachments

No.

Title

Page

a

Reconcilitation of final statements of intent against shareholder

15

b

Auckland Transport final statement of intent 2018-2021

21

c

Watercare Services Limited final statement of intent 2018-2021

51

d

Panuku Development Auckland final statement of intent 2018-2021

77

e

Auckland Tourism, Events and Economic Development final statement of intent 2018-2021

109

f

Regional Facilities Auckland final statement of intent 2018-2021

135

g

Community Education Trust final statement of intent 2018-2021

159

h

Contemporary Art Foundation final statement of intent 2018-2021

173

Ngā kaihaina / Signatories

Authors

Sarah Holdem - Principal Advisor

Edward Siddle - Principal Advisor

Claire Gomas - Principal Advisor

Authorisers

Alastair Cameron - Manager - CCO Governance & External Partnerships

Phil Wilson - Governance Director

Matthew Walker - Acting Group Chief Financial Officer

 


Finance and Performance Committee

21 August 2018

 


 


 


 


 


 


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21 August 2018

 

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21 August 2018

 

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21 August 2018

 

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Finance and Performance Committee

21 August 2018

 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


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Finance and Performance Committee

21 August 2018

 

Ports of Auckland Limited - proposed shareholder feedback on the draft Statement of Corporate Intent

 

File No.: CP2018/14368

 

  

Te take mō te pūrongo / Purpose of the report

1.       To consider proposed shareholder feedback on the draft Statement of Corporate Intent (SCI) for Ports of Auckland Limited (POAL).

Whakarāpopototanga matua / Executive summary

2.       Ports of Auckland Limited has provided council with a draft SCI for the period 2018–2021 (Attachment B).

3.       As the sole shareholder, council has the opportunity to provide shareholder feedback on POAL’s draft SCI. Under the Port Companies Act 1988 council must provide shareholder feedback no later than the end of August each year.

4.       Staff have reviewed the draft SCI and advise that shareholder feedback be provided to POAL as set out in this report.

5.       It is noted that the 100 per cent shareholding in POAL was transferred from Auckland Council Investments Limited to council on 2 July 2018 as part of the Long-term Plan 2018–2028 decision to disestablish Auckland Council Investments Limited. As such, this is the first SCI process that council has undertaken in its role as the sole shareholder of POAL.

6.       The SCI instrument is comparable to a Statement of Intent (SOI) for a council-controlled organisation in that the SCI is the principal mechanism for establishing the strategic objectives of POAL. However, it is noted that the SCI process is governed by the Port Companies Act (as opposed to the Local Government Act 2002), and subject to different legislative requirements and timeframes.

 

Ngā tūtohunga / Recommendation/s

That the Finance and Performance Committee:

a)      approve the shareholder feedback on the draft Statement of Corporate Intent 2018–2021 for Ports of Auckland Limited

b)      delegate authority to the Mayor to:

i)        finalise a letter to Ports of Auckland Limited setting out the shareholder feedback on the draft Statement of Corporate Intent 2018–2021 in line with the direction set by today’s committee

ii)       approve any minor amendments to the shareholder feedback, if required.

c)      note that Ports of Auckland Limited will attend a Governing Body workshop by the end of September 2018 to provide an annual update to councillors.

Horopaki / Context

7.       The 100 per cent shareholding in POAL was transferred from Auckland Council Investments Limited to council on 2 July 2018 as part of the Long-term Plan 2018–2028 decision to disestablish Auckland Council Investments Limited. As such, this is the first SCI process that council has undertaken in its role as the sole shareholder of POAL. A timeline setting out these processes is contained at Attachment A.

8.       Under the Local Government Act 2002, port companies are not council-controlled organisations and therefore do not undertake an SOI process. Port companies are instead subject to the SCI process and broader objectives set out under the Ports Companies Act.

9.       The preamble to the Port Companies Act explains its purpose as:

“to promote and improve efficiency, economy, and performance in the management and operation of the commercial aspects of ports and, to this end,… to establish requirements concerning the accountability and ownership of [port] companies and the responsibilities of [shareholders].”

10.     The Port Companies Act emphasises the commercial considerations that are relevant to operating a port company. In particular, it requires port companies to have the principal objective to operate as a successful business. Any other strategic objectives established by a port company through the SCI mechanism must be viewed in context of this principal objective.

11.     The SCI instrument is otherwise comparable to an SOI for a council-controlled organisation in that the SCI is the principal mechanism for a shareholder to establish the strategic direction of a port company. However, the SCI process is subject to different legislative requirements and timeframes.

12.     Under the Port Companies Act, council has the ability to modify POAL’s SCI over the course of the financial year, similar to council’s ability under the Local Government Act 2002 to modify council-controlled organisation SOIs if required.

13.     The annual legislative timeframes for the SCI process compared to the SOI process are set out as follows:

 

Port Companies Act 1988

Local Government Act 2002

Draft SCI/SOI provided to shareholder

End of July (i.e. within one month of commencement of financial year)

Before 1 March

Feedback from shareholder on draft SCI/SOI

End of August (i.e. within two months of commencement of financial year)

Within 2 months of 1 March

SCI/SOI finalised

End of September (i.e. within three months of commencement of financial year)

No later than 30 June

14.    In addition, letters of expectation are sent to council’s substantive council-controlled organisations around November – December each year to inform the SOI process even though this is not a legislative obligation for council.

15.     There was not an opportunity for council to send a letter of expectation to POAL to inform the SCI process this year, given that council only became the shareholder on 2 July 2018. Furthermore, Auckland Council Investments Limited did not send a letter of expectation to POAL to inform the SCI process in its capacity as shareholder of POAL. Going forward there will be the opportunity to provide a letter of expectation to POAL should council wish to do so.

16.     A Finance and Performance Committee workshop is scheduled in November 2018 to inform the letters of expectation to feed into the 2019–2022 council-controlled organisation SOIs and POAL SCI processes.


 

Tātaritanga me ngā tohutohu / Analysis and advice

17.     Overall POAL’s draft SCI addresses the legislative requirements set out in section 9 of the Port Companies Act.

18.     As part of the LTP 2018–2028 decision to disestablish Auckland Council Investments Limited, a memorandum of understanding between council and POAL was adopted (Attachment C). The draft SCI reflects the intended relationship between council and POAL as agreed under the memorandum of understanding.

19.     POAL’s draft SCI represents good continuity with their previous SCIs and does not signal major departures that could cause significant shifts in the company’s activity.

20.     Staff recommend the following shareholder feedback to POAL on its draft SCI to clarify their objectives and encourage closer alignment of POAL’s activities to council’s strategic priorities:

 

Analysis and Comments

Strategic/Policy Reference

Objectives (page 4)

POAL’s objectives should demonstrate alignment with council’s strategic priorities where relevant. These are articulated through council’s plans and policies.

The relevant plans and policies are not noted clearly in the ‘objectives’ section.

POAL’s objectives should be linked to its broader strategic framework.

This feedback is recommended in context of POAL’s principal objective to operate as a successful business under the Port Companies Act.

·      Auckland Plan 2050

·      Waterfront Plan

·      City Centre Master Plan

·      Central Wharves Strategy

·      Port Master Plan

·      Port Companies Act, section 5

Key Performance Targets (page 6)

POAL’s targets anticipate a decrease in net profit after tax in the following financial year, with an increase in net profit after tax thereafter based on concerted efforts by POAL in the immediate term to implement its long-term strategy.

Shareholder feedback should seek clearer explanation of why the new projections differ from the previous SCI.

·      Long-term Plan 2018-2028

·      Port five-year Business Plan

·      Port Companies Act, section 5

Cooperation with council group

The draft SCI briefly mentions POAL’s intent to cooperate with the council group at page 4.

This should be clarified with reference to the specific CCOs (e.g. Panuku Development Auckland Ltd, Auckland Transport and workstreams (i.e. Port Future Study) which POAL can reasonably anticipate interactions.

·      SOIs 2018–2021 for council’s CCOs

Mana whenua engagement

The draft SCI demonstrates a broad intent by POAL to strengthen relationships with mana whenua (page 4).

Given council’s obligations to uphold the principles of Te Tiriti o Waitangi and the expressed mana whenua interests in the waterfront land that POAL occupies.

Shareholder feedback should encourage POAL to develop an appropriate Key Performance Indicator to reflect its commitment to strengthening mana whenua relationships.

If appropriate, a benchmark for this Key Performance Indicator could be measured over this financial year and the KPI could be further refined leading into the next SCI process.

The development of a Māori Responsiveness Plan will be an ongoing discussion with POAL.

·      Māori Responsiveness Framework

·      Local Government Act 2002, section 4

Central government

The draft SCI notes POAL’s commitment to engage in port sector structure changes and supply chain solutions (page 5).

These objectives would be strengthened by the inclusion of the relationship with ‘central government’ in the preceding objectives section.

This feedback should be provided to POAL given the signalled policy work by central government on Upper North Island supply chain strategy, which could significantly affect POAL’s activity.

Furthermore, POAL should seek to engage effectively with council as its shareholder on its collaboration and work with central government.

·      Council’s ongoing relationship with central government

Sustainability

The draft SCI mentions POAL’s aspiration to be known for innovation and sustainable practices, as well as POAL’s objective to act in an environmentally responsible matter.

Council has an obligation to consider the needs of future communities in its role as a local authority. To this end, sustainability and good environmental practice are key considerations for council.

These were strong themes in the most recent SOI process for council’s CCOs and is an articulated priority in council’s strategic framework.

Shareholder feedback should encourage POAL to develop one or more Key Performance Indicators to demonstrate sustainable outcomes, with any relevant benchmark measures to be taken over the current financial year and incorporated into the next SCI. This will also benefit POAL’s aspiration by highlighting POAL’s work in this space.

·      Auckland Plan 2050

·      Local Government Act 2002, section 14

 

Ngā whakaaweawe ā-rohe me ngā tirohanga a te poari ā-rohe /
Local impacts and local board views

21.     It is the role of this committee to provide shareholder feedback on POAL’s draft SCI.

22.     Given the new nature of the shareholder relationship, local board views were not proactively sought on this draft SCI. However, there may be scope to engage with local boards on POAL’s future SCIs where appropriate.

23.     Furthermore, POAL’s draft SCI has a key performance target to attend all relevant local board meetings where invited and seek to strengthen relationships with the Ōrākei, Waitematā and Devonport-Takapuna Local Boards in particular. It is considered that this broad objective demonstrates an intention by POAL to engage with the communities on matters relating to POAL’s activity. This measure could be refined in future SCIs.

Tauākī whakaaweawe Māori / Māori impact statement

24.     Ports of Auckland Limited’s activities have the potential to impact Māori given that there are several expressed mana whenua interests in the waterfront land that POAL occupies. As well as providing a commercial return to council, POAL fulfils a kaitiaki role relating to the waterfront land that it occupies.

25.     This report recommends shareholder feedback to POAL on their draft SCI that encourages POAL to articulate a clearer commitment to mana whenua and demonstrate closer alignment with council’s broader obligations to Māori.

Ngā ritenga ā-pūtea / Financial implications

26.     Providing shareholder feedback on POAL’s draft SCI has no direct financial implications.

Ngā raru tūpono / Risks

27.     There are no direct risks associated with providing shareholder feedback on POAL’s draft SCI.

28.     Providing shareholder feedback on POAL’s draft SCI mitigates the following risks:

·    Compliance: providing shareholder feedback within the legislative timeframe ensures that council is compliant with its obligations as a shareholder under the Port Companies Act

·    Financial: providing shareholder feedback ensures that POAL’s activities are aligned to council’s strategic objectives in the longer term. This will assist council’s financial planning and ensure that the return from POAL as an asset feeds into these objectives.

·    Strategic: providing shareholder feedback ensures that POAL’s activities are aligned to council’s strategic objectives in the longer term. This will enable POAL to play an effective role in assisting council’s strategic objectives and will ensure that its activities are not inconsistent with those objectives.

·    Reputational: POAL has a public profile which can reflect on council as the sole shareholder. Ensuring effective alignment of POAL’s activities with council’s strategic objectives mitigates the risk of a negative perception of council or POAL by ensuring that its activities are not inconsistent with council’s role as a local authority.

Ngā koringa ā-muri / Next steps

29.     Should the shareholder feedback on POAL’s draft SCI be approved by this committee, this feedback will be drafted into a letter to be sent by the mayor to the chair of the POAL board by the end of August 2018.

30.     The CCO Governance and External Partnerships team will work with the mayor’s office and POAL to finalise feedback on the draft SCI and clarify any final SCI matters as needed.

 

Ngā tāpirihanga / Attachments

No.

Title

Page

a

Timeline of the implementation of the disestablishment of Auckland Council Investments Limited, including Statement of Corporate Intent timeframes under the Port Companies Act 1988

195

b

Ports of Auckland Limited draft Statement of Corporate Intent 2018-2028

197

c

Memorandum of Understanding Ports of Auckland Limited and Auckland Council

207

     

Ngā kaihaina / Signatories

Author

Ella Kay - Senior Advisor - CCO Governance & External Partnerships

Authorisers

Alastair Cameron - Manager - CCO Governance & External Partnerships

Phil Wilson - Governance Director

Matthew Walker - Acting Group Chief Financial Officer

 


Finance and Performance Committee

21 August 2018

 


Finance and Performance Committee

21 August 2018

 

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Finance and Performance Committee

21 August 2018

 


 


 


 


 


 


 


 


 


 


 


 


Finance and Performance Committee

21 August 2018

 

Land acquisition in North Takanini

 

File No.: CP2018/09679

 

  

Te take mō te pūrongo / Purpose of the report

1.       To note an update on land acquisition in North Takanini for stormwater purposes.

Whakarāpopototanga matua / Executive summary

2.       The North Takanini area is defined by the railway to the west, Porchester Road in the middle and Bruce Pulman Park to the east.

3.       Over the last decade there has been substantial growth in the North Takanini area, with many residential and commercial developments. Developments in the area have potential to provide over 1,400 residential lots.

4.       Auckland Council flood modelling has identified several potential flooding issues in this area that need to be resolved before development can continue.

5.       The council has engaged with various key stakeholders in the area, aiming to find a stormwater management solution to resolve the flooding risk that would be acceptable to all.

6.       Land acquisition in North Takanini is required to enable this drainage solution. Recommendations related to this land acquisition will be presented in the confidential section of the 21 August 2018 Finance and Performance Committee meeting.

 

Ngā tūtohunga / Recommendation

That the Finance and Performance Committee:

a)      note the information contained in this report, on land acquisition in North Takanini, enables transparency on the topic due for discussion in the public excluded part of the meeting.

Horopaki / Context

7.       The North Takanini area is defined by the railway to the west, Porchester Road in the middle and Bruce Pulman Park to the east.

8.       Over the last decade there has been substantial growth in the area, with many residential and commercial developments. Developments in the area have potential to provide over 1,400 residential lots.

9.       The area is also characterised by very flat contours and underlying peat soils. These both present a significant challenge to implementation of effective stormwater infrastructure and flood management.

10.     Since initial rezoning from rural to residential and commercial land the flood management standards have been upgraded for the whole region, creating further demands on new and existing infrastructure.

11.     In 2007 Papakura District Council completed the Waimana Trunk Line, a box culvert, to alleviate flooding issues upstream from the railway and to support growth in the catchment.

12.     The stormwater piped network and overland flow paths in the area have since been constructed progressively throughout various stages to convey flood waters into the Waimana Trunk line.


 

13.     During recent major developments in the area Auckland Council initiated an extensive flood model analysis in 2016 to update the flood management plan for the area and inform consenting processes. The model takes into account new surface flows during a 100-year rainfall event, including effects of climate change and the maximum probable development under the Auckland Unitary Plan.

14.     The modelling identified several potential flooding issues in areas that have already been developed. Flooding issues were also identified in areas that are currently being developed as well as properties that will be developed in future.

15.     Upon becoming aware of the flooding issues council engaged with various key stakeholders in the area, aiming to find a stormwater management solution that would be acceptable to all.

16.     A stormwater drainage solution is urgently needed to enable development of housing and reduce the risk of flooding and damage to property and other assets in the area, such as the rail line. Land acquisition in North Takanini is required to enable this drainage solution.

Tātaritanga me ngā tohutohu / Analysis and advice

17.     Options and recommendations related to this land acquisition will be discussed in the confidential section of the 21 August 2018 Finance and Performance Committee meeting.

Ngā whakaaweawe ā-rohe me ngā tirohanga a te poari ā-rohe /
Local impacts and local board views

18.     The Papakura Local Board has not been consulted on the specific approach to land acquisition which will be discussed in the confidential section of the 21 August 2018 Finance and Performance Committee meeting.

19.     However, the Papakura Local Board Plan notes that a key initiative for the board is to ‘implement initiatives to improve water quality in our streams and Manukau Harbour.’ The board has also previously expressed support for major stormwater projects in the area, such as the Artillery Tunnel, which enable development and improve water quality.

Tauākī whakaaweawe Māori / Māori impact statement

20.     Stormwater management, and its impact on waterways, are of key significance to mana whenua in their role as kaitiaki of Auckland’s natural environments.

21.     Past engagement with mana whenua in the wider catchment has indicated support from iwi for stormwater improvements, with the conditions that:

·    mana whenua be engaged on individual projects

·    council’s infrastructural works preserve or enhance the mauri of waterways in the area.

22.     Feedback will be sought from mana whenua on the construction of any stormwater infrastructure in the North Takanini area by Auckland Council.

Ngā ritenga ā-pūtea / Financial implications

23.     Financial implications of this land acquisition will be discussed in the confidential section of the 21 August 2018 Finance and Performance Committee meeting.

Ngā raru tūpono / Risks

24.     Risks related to this land acquisition will be described in the confidential section of the 21 August 2018 Finance and Performance Committee meeting.

Ngā koringa ā-muri / Next steps

25.     Next steps for land acquisition in North Takanini will be described in the confidential section of the 21 August 2018 Finance and Performance Committee meeting.

 

Ngā tāpirihanga / Attachments

There are no attachments for this report.    

Ngā kaihaina / Signatories

Author

Lucy Hawcroft - Senior Relationship Advisor

Authorisers

Dean Kimpton - Chief Operating Officer

Matthew Walker - Acting Group Chief Financial Officer

 


Finance and Performance Committee

21 August 2018

 

Finance and Performance Committee - Information Report - 21 August 2018

 

File No.: CP2018/14481

 

  

Te take mō te pūrongo / Purpose of the report

1.       To receive a summary and provide a public record of memos or briefing papers for the Committee’s information and any other information that may have been distributed to committee members since 19 June 2018.

Whakarāpopototanga matua / Executive summary

2.       This is a regular information-only report which aims to provide greater visibility of information circulated to committee members via memo or other means, where no decisions are required.

3.       The Finance and Performance Committee Forward Work Programme to 30 June 2019 is currently being assembled and will be presented to the committee meeting scheduled to be held on Tuesday, 18 September 2018.

4.       The following presentations/memos/reports were presented/circulated as follows:

·    24 July 2018 – Briefing on Acquisitions and Disposals – 10-year Budget 2018-2028 (Attachment A).

5.       The workshop papers and any previous documents can be found on the Auckland Council website at the following link: http://infocouncil.aucklandcouncil.govt.nz/

·    at the top of the page, select meeting “Finance and Performance Committee” from the drop-down tab and click ‘View’;

·    under ‘Attachments’, select either HTML or PDF version of the document entitled ‘Extra Attachments’.

6.       Note that, unlike an agenda decision report, staff will not be present to answer questions about these items referred to in this summary.  Committee members should direct any questions to the authors.

 

Ngā tūtohunga / Recommendation/s

That the Finance and Performance Committee:

a)      receive the information report – 21 August 2018.

 

Ngā tāpirihanga / Attachments

No.

Title

Page

a

24 July 2018 – Briefing on Acquisitions and Disposals – 10-year Budget 2018-2028 (Under Separate Cover)

 

     

Ngā kaihaina / Signatories

Author

Sandra Gordon - Senior Governance Advisor

Authoriser

Matthew Walker - Acting Group Chief Financial Officer

      

 


Finance and Performance Committee

21 August 2018

 

Exclusion of the Public: Local Government Official Information and Meetings Act 1987

 

That the Finance and Performance Committee:

a)      exclude the public from the following part(s) of the proceedings of this meeting.

The general subject of each matter to be considered while the public is excluded, the reason for passing this resolution in relation to each matter, and the specific grounds under section 48(1) of the Local Government Official Information and Meetings Act 1987 for the passing of this resolution follows.

This resolution is made in reliance on section 48(1)(a) of the Local Government Official Information and Meetings Act 1987 and the particular interest or interests protected by section 6 or section 7 of that Act which would be prejudiced by the holding of the whole or relevant part of the proceedings of the meeting in public, as follows:

 

C1       CONFIDENTIAL: Land acquisition in North Takanini

Reason for passing this resolution in relation to each matter

Particular interest(s) protected (where applicable)

Ground(s) under section 48(1) for the passing of this resolution

The public conduct of the part of the meeting would be likely to result in the disclosure of information for which good reason for withholding exists under section 7.

s7(2)(g) - The withholding of the information is necessary to maintain legal professional privilege.

s7(2)(i) - The withholding of the information is necessary to enable the local authority to carry on, without prejudice or disadvantage, negotiations (including commercial and industrial negotiations).

In particular, the report contains commercially sensitive information relating to land acquisition for stormwater purposes which could impact on the council's position in negotiations. It is also considered legally privileged due to the current court case Sabatier vs Auckland Council.

s48(1)(a)

The public conduct of the part of the meeting would be likely to result in the disclosure of information for which good reason for withholding exists under section 7.