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
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
|
|
|
Finance and
Performance Committee
21 August 2018
|
|
|
Finance and
Performance Committee
21 August 2018
|
|
|
Finance and
Performance Committee
21 August 2018
|
|
|
Finance and
Performance Committee
21 August 2018
|
|
|
Finance and
Performance Committee
21 August 2018
|
|
|
Finance and
Performance Committee
21 August 2018
|
|
|
Finance and Performance
Committee
21 August 2018
|
|
|
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
|
|
|
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.
|
