I hereby give notice that an ordinary
meeting of the Finance and Performance Committee will be held on:
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Date:
Time:
Meeting Room:
Venue:
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Tuesday, 18
September 2018
9.30am
Reception
Lounge
Auckland Town Hall
301-305 Queen Street
Auckland
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Komiti ā Pūtea, ā Mahi
Hoki /
Finance and Performance Committee
OPEN AGENDA
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MEMBERSHIP
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Chairperson
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Cr Ross Clow
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Deputy Chairperson
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Cr Desley Simpson, JP
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Members
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Cr Josephine Bartley
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IMSB Member Terrence Hohneck
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Cr Dr Cathy Casey
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Cr Penny Hulse
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Deputy Mayor Cr Bill Cashmore
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Cr Mike Lee
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Cr Fa’anana Efeso Collins
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Cr Daniel Newman, JP
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Cr Linda Cooper, JP
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Cr Greg Sayers
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Cr Chris Darby
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Cr Sharon Stewart, QSM
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Cr Alf Filipaina
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IMSB Chair David Taipari
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Cr Hon Christine Fletcher, QSO
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Cr Sir John Walker, KNZM, CBE
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Mayor Hon Phil Goff, CNZM, JP
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Cr Wayne Walker
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Cr Richard Hills
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Cr John Watson
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(Quorum 11 members)
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Sandra Gordon
Senior Governance Advisor
12 September 2018
Contact Telephone: (09) 890 8150
Email: sandra.gordon@aucklandcouncil.govt.nz
Website: www.aucklandcouncil.govt.nz
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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.
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Finance and Performance
Committee
18 September
2018
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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
5.1 Public Input - David
Boersen, Empire Capital Limited related to council’s strategic approach
to marinas 9
6 Local Board
Input 10
6.1 Local Board Input - Hibiscus
and Bays Local Board regarding a proposed disposal of 8 Hiwi Crescent, Stanmore
Bay 10
7 Extraordinary
Business 10
8 Disposal
recommendations report September 2018 13
9 Finance and
Performance Committee - Information Report - 18 September 2018 25
10 Consideration of
Extraordinary Items
PUBLIC EXCLUDED
11 Procedural
Motion to Exclude the Public 27
C1 Approval of and recommendation
for adoption of the 2017/2018 Annual Report for Auckland Council and Group 27
C2 Auckland waste services 27
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
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That the Finance and Performance Committee:
a)
confirm the ordinary minutes of its meeting,
held on Tuesday, 21 August 2018, including the
confidential section, as a true and correct record.
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4 Petitions
At the close of
the agenda no requests to present petitions had been received.
5 Public
Input
Standing Order
7.7 provides for Public Input. Applications to speak must be made to the
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.
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5.1 Public
Input - David Boersen, Empire Capital Limited related to council’s
strategic approach to marinas
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Te take mō te
pūrongo / Purpose of the report
1. To
make a presentation to the Finance and Performance Committee related to
council’s strategic approach to marinas.
Whakarāpopototanga
matua / Executive summary
2. Mr
David Boersen, Development Manager – Empire Capital wishes to address
the committee regarding the Planning Committee’s recommendation from
its meeting held on Tuesday, 4 September 2018 related to council’s
strategic approach to marinas:
That the
Planning Committee:
a) request
a workshop to discuss a strategy and a forward plan regarding the future of
Auckland’s marinas.
b) recommend
to the Finance and Performance Committee not to proceed with the sale of any
marina land pending the completion of the work referred to in clause a)
above.
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Ngā tūtohunga / Recommendation/s
That the Finance and
Performance Committee:
a) receive
and thank Mr David Boersen for his presentation regarding the Planning
Committee’s recommendation related to council’s strategic
approach to marinas.
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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.
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6.1 Local
Board Input - Hibiscus and Bays Local Board regarding a proposed disposal of
8 Hiwi Crescent, Stanmore Bay
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Te take mō te
pūrongo / Purpose of the report
1. To
make a presentation to the Finance and Performance Committee regarding a
proposed disposal of 8 Hiwi Crescent, Stanmore Bay.
Whakarāpopototanga
matua / Executive summary
2. Janet
Fitzgerald, Deputy Chairperson of the Hibiscus and Bays Local Board wishes to
address the committee.
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Ngā tūtohunga / Recommendation/s
That the Finance and
Performance Committee:
a) receive
and thank Hibiscus and Bays Local Board Deputy Chair, Janet Fitzgerald for her
presentation regarding a proposed disposal of 8 Hiwi Crescent, Stanmore Bay.
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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.”
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Finance and
Performance Committee
18 September
2018
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Disposal
recommendations report September 2018
File No.: CP2018/01773
Te take mō te pūrongo / Purpose of the report
1. To
obtain approval to dispose of two council-owned sites that Panuku Development
Auckland (Panuku) considers suitable for sale.
Whakarāpopototanga matua / Executive summary
2. For
the 2018/2019 financial year, Panuku’s statement of intent (SOI) requires
it to identify properties from within council’s portfolio that may be
suitable for potential sale to a combined value of $30 million, and to sell $24
million of property by 30 June 2019.
3. 30R
Birmingham, Ōtara is a vacant site that has been identified as potentially
surplus to council requirements when assessed against council’s Parks and
Open Space Acquisition Policy and Open Space Provision Policy.
The site is a reserve subject to the Reserves Act 1977. Consultation with
council departments and CCOs, iwi authorities and the Ōtara -Papatoetoe Local Board about the site has now taken place. No alternative service uses were identified through the
rationalisation process and feedback received was supportive of the proposed
disposal. Accordingly, Panuku recommends that the reserve status be revoked and
that it be divested. Final revocation of the reserve status
will be subject to completing the statutory requirements of the Reserves Act
1977 and Local Government Act 2002, including public advertising.
4. 8
Hiwi Crescent, Stanmore Bay is vacant land that was acquired for transport
purposes. The site is no longer required for this purpose. Consultation with council
departments and CCOs, iwi authorities and the Hibiscus and Bays Local Board
about the site has now taken place. The board endorsed a disposal of the site,
but requested that any sale proceeds be allocated to a relevant Weiti Crossing (Penlink) transport infrastructure budget, as the property was originally
acquired for transport purposes. In response advice was
provided that such an allocation would not be in
accordance with council financial policy.
5. The
board has advised that it will request the allocation of sale proceeds when the
site is presented to the Finance and Performance Committee. As no alternative
service uses were identified through the rationalisation process and the
feedback received was supportive of the proposed disposal, Panuku recommends it
be divested.
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Ngā tūtohunga / Recommendation/s
That the Finance and
Performance Committee:
a) approve
subject to the satisfactory conclusion of any required statutory processes:
i) the
revocation of the reserve status of the land at 30R Birmingham Road,
Ōtara, more or less being Lot 31 DP 57902 as it is no
longer required by Auckland Council for reserve purposes when assessed
against council’s open space acquisition and provision policies;
ii) the
disposal of the land at 30R Birmingham Road, Ōtara, more or less being Lot 31 DP 57902 as it is no longer required
by Auckland Council for reserve purposes when assessed against
council’s open space acquisition and provision policies; and
iii) the
disposal of the land at 8 Hiwi Crescent, Stanmore Bay, comprised of an estate
in fee simple more or less being Lot 106 DP 40314 (0.0809HA) contained in
computer freehold register CT-15B/339;
b) agrees that final terms and conditions be approved under the
appropriate delegations.
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Horopaki / Context
6. Panuku
is required to undertake ongoing review of council’s property assets.
This includes identifying properties from within council’s portfolio that
are no longer required for council service purposes and may be suitable for
other public works and/or potential sale, and development if appropriate.
Panuku has a particular focus on achieving housing and urban regeneration
outcomes. Identifying potential sale properties contributes to the Long-term
Plan 2018-2028 (LTP) and the Auckland Plan focus of accommodating the
significant growth projected for the region over the coming decades, by
providing council with an efficient use of capital and prioritisation of funds
to achieve its activities and projects.
7. Once
a property has been identified as potentially no longer being required for
council service purposes, Panuku engages with council departments and its CCOs
through an expression of interest process, to establish whether the property
must be retained for a strategic purpose or is required for a future funded
project. Once a property has been internally cleared of any service
requirements, Panuku then consults with local boards, mana whenua and ward
councillors. All sale recommendations must be approved by the Panuku Board
before a final recommendation is made to the Finance and Performance
Committee.
Tātaritanga me ngā tohutohu / Analysis and advice
8. Property
specific information is included in the Tātaritanga me ngā tohutohu /
Analysis and advice section of the property attachments to this report.
Ngā whakaaweawe ā-rohe me ngā tirohanga a te
poari ā-rohe /
Local impacts and local board views
9. Local
boards are informed of the commencement of the rationalisation process for
specific properties. Following the close of the EOI period, relevant local boards
are engaged with. Panuku attend workshops with the relevant local board and provide
information about properties being rationalised in its local board area. A
report is subsequently prepared for the local board business meeting so that
its views can be formalised.
10. At
the completion of the local board engagement for the subject sites, the
following formal positions were confirmed.
· The Ōtara-Papatoetoe Local Board
endorsed the proposed reserve revocation and disposal of 30R Birmingham
Road, Ōtara.
· The Hibiscus and Bays Local Board endorsed the proposed disposal of
8 Hiwi Crescent, Stanmore Bay. The board also resolved that as the property was
originally acquired for transport purposes, the board requests that the Finance and Performance Committee allocate
sale proceeds from a disposal to a relevant Weiti Crossing (Penlink) transport
infrastructure budget. Advice was subsequently provided
that such an allocation would not be in accordance with
council financial policy. The
board has advised that it will present to the Finance and Performance Committee
to consider its request.
11. Additional
property specific feedback received is included in the Ngā whakaaweawe
ā-rohe me ngā tirohanga a te poari ā-rohe / Local impacts and
local board views section of the property attachments to this report.
Tauākī whakaaweawe Māori / Māori impact
statement
12. Māori
have an active and specific role in Auckland’s open spaces, including
kaitiakitanga (guardianship) of our land and marine resources. Land has a
specific role in protecting, enabling and building Māori social and
cultural capital. Marae, kohanga reo, and other Māori entities have been
established on reserve status land, offering spiritual, cultural, as well as a
range of social, educational, health and justice services.
13. The
importance of effective communication and engagement with Māori on the
subject of land is understood. Panuku has a robust form of engagement with mana whenua groups across the
region. Each relevant mana whenua group is contacted independently regarding
council-owned land subject to rationalisation and requested to give feedback.
14. Panuku’s
engagement invites mana whenua to respond with any issues of particular
cultural significance the group would like to formally express in relation to
the subject properties. We also request notes regarding any preferred outcomes
that the group would like Panuku to consider in our formal reporting to
council. Possible outcomes could include commemoration or physical
acknowledgment in the form of plaques or other mutually agreed means of
recognition.
15. Mana
whenua groups are also invited to express potential commercial interest in the
subject sites. In the event the sites are approved for sale, all groups will be
alerted of the decision, and all groups are alerted once a property comes on
the market.
16. No
issues of cultural significance or notifications of commercial interest from
iwi were received by Panuku during the mana whenua engagement undertaken for
both sites.
17. Additional
property specific information is included in the mana whenua engagement section
of the property attachments to this report.
Ngā ritenga ā-pūtea / Financial implications
18. Capital
receipts from the sale of properties contribute to Auckland Plan outcomes and
the LTP by providing the Council with an efficient use of capital and
prioritisation of funds to achieve its activities and projects. In the
2018/2019 financial year, the LTP has forecast the disposal of
non-strategic assets to the value of of $24 million.
19. In
accordance with the Local Government Act 2002, the annual statement of intent
states the activities and intentions of Panuku, the objectives that those
activities will contribute to and performance measures and targets as the basis
of organisational accountability. For the 2018/2019 financial year Panuku is
required to identify properties from within council’s portfolio that may
be suitable for potential sale to a combined value of $30 million and to sell
$24 million of property by 30 June 2019.
Ngā raru tūpono / Risks
20. No risks
associated with the recommendations contained in this report have been
identified.
Ngā koringa ā-muri / Next steps
21. Should
the committee approve the proposed divestment of 30R Birmingham Road,
Ōtara and 8 Hiwi Crescent, Stanmore Bay, Panuku will
undertake a disposal process that provides an optimal return to council.
22. Property
specific information is included in the Ngā koringa ā-muri / Next
steps section of the property attachments to this report.
Ngā
tāpirihanga / Attachments
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No.
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Title
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Page
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a⇩ 
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30R Birmingham Road, Ōtara property information
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17
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b⇩ 
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8 Hiwi Crescent, Stanmore Bay property information
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21
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Ngā kaihaina / Signatories
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Author
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Anthony Lewis - Senior Advisor, Portfolio Review,
Panuku Development Auckland
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Authorisers
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Rachel Hume - Acting Team Leader,
Portfolio Review, Panuku Development Auckland
Marian Webb - Manager Portfolio Strategy, Panuku
Development Auckland
David Rankin - Chief Operating Officer, Panuku
Development Auckland
Matthew Walker - Group Chief Financial Officer
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Finance and
Performance Committee
18 September
2018
|
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Finance and
Performance Committee
18 September
2018
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Finance and
Performance Committee
18 September
2018
|
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Finance and Performance Committee -
Information Report - 18 September 2018
File No.: CP2018/16321
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
following presentations/memos/reports were presented/circulated as follows:
· 5
September 2018 – Letter from Mayor Phil Goff to Auckland Transport
relating to the Final Statement of Intent for 2018-2021 (Attachment A)
· 10
September 2018 – Workshop – Development Contributions (Attachment
B)
· 11
September 2018 – Briefing – Colin Dale Park (no attachment).
4. 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’.
5. 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.
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Ngā tūtohunga / Recommendation/s
That the Finance and
Performance Committee:
a) receive
the information report – 18 September 2018.
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Ngā
tāpirihanga / Attachments
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No.
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Title
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Page
|
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a⇨
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5 September 2018 – Letter from Mayor Phil Goff
to Auckland Transport relating to the Final Statement of Intent for 2018-2021
(Under Separate Cover)
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b⇨
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10 September 2018 – Workshop – Development
Contributions (Under Separate Cover)
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Ngā kaihaina / Signatories
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Author
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Sandra Gordon - Senior Governance Advisor
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Authoriser
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Matthew Walker - Group Chief Financial Officer
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Finance and
Performance Committee
18 September
2018
|
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Exclusion of the Public: Local Government Official Information
and Meetings Act 1987
That the Finance and Performance Committee:
a) exclude
the public from the following part(s) of the proceedings of this meeting.
The general
subject of each matter to be considered while the public is excluded, the
reason for passing this resolution in relation to each matter, and the specific
grounds under section 48(1) of the Local Government Official Information and
Meetings Act 1987 for the passing of this resolution follows.
This resolution
is made in reliance on section 48(1)(a) of the Local Government Official
Information and Meetings Act 1987 and the particular interest or interests
protected by section 6 or section 7 of that Act which would be prejudiced by
the holding of the whole or relevant part of the proceedings of the meeting in
public, as follows:
C1 Approval
of and recommendation for adoption of the 2017/2018 Annual Report for Auckland
Council and Group
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Reason for
passing this resolution in relation to each matter
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Particular
interest(s) protected (where applicable)
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Ground(s)
under section 48(1) for the passing of this resolution
|
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The public
conduct of the part of the meeting would be likely to result in the
disclosure of information for which good reason for withholding exists under
section 7.
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s7(2)(h) -
The withholding of the information is necessary to enable the local authority
to carry out, without prejudice or disadvantage, commercial activities.
In
particular, the report contains detailed financial adjustments, assumptions
and judgements that have impact on the financial results of the Auckland
Council Group as at 30 June 2018 that require final Audit New Zealand
sign-off and release to the New Zealand Stock Exchange
|
s48(1)(a)
The public
conduct of the part of the meeting would be likely to result in the
disclosure of information for which good reason for withholding exists under
section 7.
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C2 Auckland
waste services
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Reason for
passing this resolution in relation to each matter
|
Particular
interest(s) protected (where applicable)
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Ground(s)
under section 48(1) for the passing of this resolution
|
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The public
conduct of the part of the meeting would be likely to result in the
disclosure of information for which good reason for withholding exists under
section 7.
|
s7(2)(b)(ii)
- The withholding of the information is necessary to protect information
where the making available of the information would be likely unreasonably to
prejudice the commercial position of the person who supplied or who is the
subject of the information.
s7(2)(h) -
The withholding of the information is necessary to enable the local authority
to carry out, without prejudice or disadvantage, commercial activities.
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 a supplier's financial position which could prejudice council and the
suppliers' position in negotiations.
|
s48(1)(a)
The public
conduct of the part of the meeting would be likely to result in the
disclosure of information for which good reason for withholding exists under
section 7.
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