Agenda of Finance and Performance Committee

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

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 Wednesday, 14 November 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.

5.1 Public Input - Ōrākei Baptist Church regarding the rating of church properties

Te take mō te pūrongo / Purpose of the report

1. To make a presentation to the Finance and Performance Committee related to the rating of churches.

Whakarāpopototanga matua / Executive summary

2. Ms Diane Robinson, Volunteer Treasurer for the Ōrākei Baptist Church wishes to address the committee regarding the rating of churches.

Ngā tūtohunga / Recommendation/s

That the Finance and Performance Committee:

a) receive and thank Ms Diane Robinson for her presentation regarding the rating of church properties.

5.2 Public Input - Elim Church of New Zealand regarding the rating of church properties

Te take mō te pūrongo / Purpose of the report

1. To make a presentation to the Finance and Performance Committee related to the rating of churches.

Whakarāpopototanga matua / Executive summary

2. Mr Chris Bethwaite and Mr John Roberts – Elim Church of New Zealand Inc wish to address the committee regarding the rating of churches.

Ngā tūtohunga / Recommendation/s

That the Finance and Performance Committee:

a) receive and thank Mr Chris Bethwaite and Mr John Roberts for their presentation regarding the rating of church properties.

5.3 Public Input - Anglican Diocese of Auckland regarding the rating of church properties

Te take mō te pūrongo / Purpose of the report

1. To make a presentation to the Finance and Performance Committee related to the rating of churches.

Whakarāpopototanga matua / Executive summary

2. Right Reverend Ross Bay, Bishop of Auckland – Anglican Diocese of Auckland wishes to address the committee regarding the question of rates in relation to church properties.

Ngā tūtohunga / Recommendation/s

That the Finance and Performance Committee:

a) receive and thank Right Reverend Ross Bay, Bishop of Auckland for his presentation regarding the rating of church properties.

5.4 Public Input - St Heliers Presbyterian Church and Community Centre regarding the rating of church properties

Te take mō te pūrongo / Purpose of the report

1. To make a presentation to the Finance and Performance Committee related to the rating of churches.

Whakarāpopototanga matua / Executive summary

2. Rev Pauline Stewart – St Heliers Presbyterian Church and Community Centre wishes to address the committee regarding the rating of church properties.

Ngā tūtohunga / Recommendation/s

That the Finance and Performance Committee:

a) receive and thank Rev Pauline Stewart for her presentation regarding the rating of church properties.

5.5 Public Input - Presbyterian Churches in the Auckland Region regarding the rating of church properties

Te take mō te pūrongo / Purpose of the report

1. To make a presentation to the Finance and Performance Committee related to the rating of churches.

Whakarāpopototanga matua / Executive summary

2. Mr Geoff Foster, representing the Presbyterian Churches in the Auckland Region wishes to address the committee regarding the rating of church properties.

Ngā tūtohunga / Recommendation/s

That the Finance and Performance Committee:

a) receive and thank Mr Geoff Foster for his presentation regarding the rating of church properties.

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.

6.1 Local Board Input - Howick Local Board regarding a proposed disposal of 34 Moore Street, Howick

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 34 Moore Street, Howick.

Whakarāpopototanga matua / Executive summary

2. Mr David Collings, Chairperson of the Howick Local Board wishes to address the committee.

Ngā tūtohunga / Recommendation/s

That the Finance and Performance Committee:

a) receive and thank Howick Local Board Chair, David Collings for his presentation regarding a proposed disposal of 34 Moore Street, Howick.

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

20 November 2018

Rating of religious use properties

File No.: CP2018/20952

Te take mō te pūrongo / Purpose of the report

1. To recommend guidelines for the application of rates to properties used for religious purposes and a transition mechanism for managing changes to their rates.

Whakarāpopototanga matua / Executive summary

2. The council’s review of its rating treatment of non-rateable properties has resulted in a number of religious properties receiving large rates increases this year. While three letters were issued to affected ratepayers, some organisations have now raised concerns that they were unaware of what the full impact of the changes would be.

3. The non-rateable review identified that rating information for religious properties was out of date or incomplete and they were being rated inconsistently across the region, reflecting the approaches taken by the legacy councils. The review process did not change rating policy, instead ensuring that the policy was applied consistenly. The outcome was an increase in rates for religious properties from $2.3 million to $3.6 million. In response to concerns raised by ratepayers officers were asked to examine the outcome of the review. Officers then sought additional legal guidance and investigated concerns raised by ratepayers.

4. Rates must comply with legislation that requires that land solely or principally used for religious worship is non-rateable. Rates paid by religious organisations for land used for other purposes should be fair and comparable to other properties that are being used for the same or similar purposes.

5. Officers recommend setting administrative guidelines for the rating treatment of properties used for religious purposes. These will see small parts of properties that are used for purposes ancillary to religious worship be treated as non-rateable. Parts of land used for other purposes should be rated in the same way as other non-religious use properties so as to be fair and equitable. Residences will be rated as residential while cafes, shops and car parks operated commercially will be rated as business. Applying the proposed guidelines will reduce the rates for these properties from $3.6 million to $3.0 million. The key change is a $500,000 reduction in rates that had been applied to small offices.

6. The table below shows the rate treatment that would apply to the different uses of land owned by religious properties based on the application of these guidelines.

Activity	Rating treatment
Worship incl. halls used for religious education	Non-rateable (waste charges only)
Ancillary to worship (e.g. small offices, non-commercial op shops and cafes, car parking)
Not for profit childcare provided under the Education Act
Business (e.g. large offices, commercial shops and cafes), car parks hired out commercially	Business
Commercial childcare	Business
Community; halls, gyms and community childcare	Residential
Residential	Residential
Farm/lifestyle	Farm/lifestyle

7. Officers recommend that a transition be provided to address the uncertainty ratepayers have faced from the timing of decisions and communication issues. The transition would hold rates for 2018/2019 at 2017/2018 levels except for increases caused by the identification of commercial activity. The transition means the rates payable for 2018/2019 will be around $2.7 million. The majority of the increase is from a single commerically operated car park with $200,000 in rates. The new rates will apply from 1 July 2019. Officers will apply a rates transition grant automatically to rates accounts and issue new invoices.

Ngā tūtohunga / Recommendation/s

That the Finance and Performance Committee:

a) agree to transition rates increases for religious use properties by deferring rates increases to 2019/2020 through the direct application of a grant to rates accounts for 2018/2019 to hold rates at 2017/2018 levels except for rates increases caused by the identification of commercial activity

b) agree that the rating approaches set out in the following table be used for parts of religious use land not used for religious worship, religious education, or as a cemetery

Land use	Rating approach
Retail, commercial or industrial	Business
Residential	Residential
Farm or lifestyle	Farm/lifestyle
Vacant/unused	Value based on highest and best use as determined by their underlying zone and rate accordingly
Car parks	Car parks only serving the religious worship land will be considered part of the non-rateable activity Car parks serving multiple land uses will be apportioned based on the proportional ratio of rating treatment of the other parts of the land Business where paid parking is in place
Halls and gymnasiums	Officers will work with affected ratepayers to clarify the use of halls to ensure those primarily being used for religious purposes are treated as non-rateable Other halls and gymnasiums used for community purposes will be rated residential
Cafés	Cafés not operating commercially will be considered part of the non-rateable activity Cafés operating commercially will be rated business
Childcare	Not-for-profit childcare provided under the Education Act is non-rateable Childcare providing a community service for the benefit of the community will continue to be classified as residential Childcare operating for profit or not open to the general public will continue to be classified as business
Op Shops	Op Shops not operating in a commercial like manner (such as those only open for a small number of hours each week) will be considered part of the non-rateable activity Op Shops operating commercially or operating from a separate title will continue to be classified as business
Libraries	Libraries will be zero-rated
Offices	Small offices will be considered part of the principle use of the property and will be non-rateable Large offices will be rated as business

c) agree to consult on amending the Funding Impact Statement to provide for zero rating of libraries as part of the Annual Budget 2019/2020

d) direct officers to work with the owners of religious properties to clarify the use of halls

e) direct officers to communicate these decisions to the affected ratepayers.

Horopaki / Context

8. Council should apply rates equitably across all ratepayers. The Local Government Rating Act 2002 provides that all land is rateable except where it is specifically exempted. Non-rateable parts of land used for religious purposes are set out below and includes land used:

· solely or principally as a place of religious worship

· for a Sunday/Sabbath school, or other form of religious education (non-profit only)

· for theological training up to 1.5 Ha

· as a cemetery, crematorium, or burial ground up to 2 Ha

· as an integrated school

· for early childhood education under the Education Act.

9. The remainder of the land is considered rateable and it is up to council to determine how to treat these rateable parts. Land considered non-rateable is still liable for waste management targeted rates where a waste management service is provided.

10. Following concerns raised at the Finance and Performance Committee officers undertook a review of all non-rateable properties. The purpose of the review was to ensure that the council was complying with legislation and applying its rating policy consistently across all ratepayers. The review was not a change to council policy.

11. The review identified 970 properties with a religious use that were paying $2.3 million in rates. It also found that the information that council held on some of these properties was outdated and the rating treatment reflected differing legacy council approaches.

12. As part of council’s efforts to update the information held on these properties council sought to engage with the owners of religious use properties. This included at least 3 letters to each ratepayer and a request that they provide information on how their property was being used. However, it has become apparent that these letters may not have reached the appropriate contact within each religious organisation.

13. Additionally, this process culminated at the end of the 10-year Budget process and coincided with the revaluation. Officers were therefore unable to advise of the rating impacts of the review until the first instalment rates notices were about to be issued.

14. The outcome of the review was an increase in rates for these properties of $1.3 million (from $2.3 million to 3.6 million). 241 properties experienced a decrease in rates while 542 experienced an increase. 305 of these experienced an increase of more than $1,000. While some of the changes experienced by religious use properties was due to the review, other changes were caused by the 2017 revaluation. 16 properties were found to be fully rateable as they were no longer being used for religious worship.

15. In response to concerns raised by ratepayers, officers were asked to review the outcome of the non-rateable review for properties used for religious purposes. Until that review was completed religious properties were offered the opportunity to defer payment of their rates. 157 properties took up this offer.

Tātaritanga me ngā tohutohu / Analysis and advice

Introduction

16. To support review of the rating treatment of properties used for religious purposes officers have sought additional legal advice and considered the concerns expressed by ratepayers.

17. Many of the ratepayers facing change raised concerns about the application of rates to small offices or other parts of the property used for purposes ancillary to religious worship. Where a small part of the property is used for purposes ancillary to religious worship or a related but minor activity is taking place on the property it is still principally used for religious worship and officers consider it should be non-rateable. Officers recommend that these parts of the land not be apportioned for separate rating. They would therefore be treated as non-rateable. Use of the land on a larger scale or for commercial purposes should continue to be apportioned to ensure fair treatment relative to other ratepayers.

18. After considering the further legal advice, ratepayer concern and undertaking additional analysis, officers have developed a set of administrative guidelines that can be used in establishing the rating treatment of properties used for religious purposes. The guidelines meet the council’s obligations to comply with the Local Government Rating Act 2002 and to ensure Auckland Council’s current rating policy is applied consistently across all ratepayers. This approach ensures fair treatment of religious use properties and other properties.

19. There are two key elements to these guidelines:

i) where a small part of the property is used for purposes ancillary to religious worship it should not be apportioned and therefore be treated as non-rateable e.g. small offices, non-commercial café’s, non-commercial op shops and car parking for these activities.

ii) the parts of land used for other purposes should be rated in a consistent way as other non-religious use properties across the region e.g. residences – residential rates, businesses, commercial car parks, commercial café’s and commercial op shops - business rates.

20. Ratepayers also expressed concern about the size and suddenness of change and the value to the community of the activities their organisations undertake alongside religious worship. A transition period to manage the transition of rates is therefore proposed.

Analysis of land use

21. The following sections set out officers recommendations for how each type of activity should be treated after applying the guidelines and the consequent rating implications. Note that land solely or principally used for religious worship is non-rateable.

Commercial, residential, farm/lifestyle and vacant land

22. Land used for these purposes should be rated as provided for in Auckland Council’s rating policy i.e. business, residential, farm/lifestyle or in the case of vacant land valued at its highest and best use and rated accordingly. This is consistent with the treatment of other land owned by community or charitable organisations.

Activity	Number of properties	Rates for 2018/2019 after guidelines applied	Notes
Business	30	$900,000	Leased by religious organisation and leased commercially Some owned privately and leased to religious organisation
Residential	226	$750,000	Houses, flats, dormitories, friaries, hostels, retirement villages, and manses
Farm/lifestyle	8	$30,000
Vacant/unused	7	$55,000

Car parks

23. Car parks where all the other land is non-rateable should be non-rateable.

24. Car parks on land that has both rateable and non-rateable parts have the value of the car park proportionately added to the other respective parts of the land. For example, if 80 percent of the land is used for religious worship and 20 percent used for a business, then 80 percent of the value of the car park is incorporated in the non-rateable part of the property and 20 percent of the value of the car park is incorporated in the business.

25. Car parks operated commercially should be rated business. 8 properties have car parks that fall into this category, with rates of around $240,000. This is primarily made up of one large car park in the city centre.

Halls and gymnasiums

26. Halls primarily being used for religious worship or education should be non-rateable.

27. 91 halls have been assessed rates of around $290,000. Objections raised by ratepayers of religious use properties have indicated that some of these halls are principally used for religious worship or religious education and are available to let to the community for any excess available time. In these circumstances the hall should be non-rateable.

28. Officers will be undertaking further work with the owners of all the halls to ensure those primarily being used for religious worship or eductation are treated as non-rateable.

29. Where rateable, halls and gymnasiums should be rated as residential as they provide a community service for the benefit of the community. There are 124 other halls owned by non-religious community organisations. These are all rated as residential and assessed rates of around $630,000.

30. There are a range of support options provided by council to community organisations who own their own land. These include having some of their operating or capital costs funded by council and being eligible for local board grants.

31. There are 2 properties where part of the property is being used as a gymnasium. These should be rated as residential and make up around $5,000 of the assessed rates of religious use land.

Cafés

32. There are 8 properties where part of the property is being used as a café selling refreshments to the public. Some of these cafés may not be run commercially, opening for small number of hours or on a pay what you think basis. In these circumstances they should be treated as part of the non-rateable activity.

33. Cafés operating commercially should be rated as business.

34. At present all cafes have been classified as business and make up around $25,000 of the rates from religious use land. Officers will review the operations and determine rateability in conjunction with the property owners.

Childcare operations

35. There are 69 properties where part of the property is being used to provide childcare. Of these there are 52 childcare services, which as they are operating under the Education Act and are not-for-profit, are non-rateable. The is one childcare operation that is not for profit but not operating under the Education Act. This is classified as residential as it provides a community service for the benefit of the community and has assessed rates of $2,000. The 16 which are operating for profit or not open to the general public are classified as business and have assessed rates of around $115,000. This is consistent with the treatment of other childcare operations.

Op Shops

36. There are 22 properties where part of the property is being used as an op shop. These are carrying out retail operations selling second hand goods to the general public. 15 operate for less than 30 hours per week of which 7 operate for less than 10 hours per week. Most make up a small part of the overall value of the property. Where the op shop is not being run in a commercial manner they should be treated as part of the non-rateable activity.

37. Op shops operating commercially or operating from a separate title should be rated as business.

38. All the op shops are presenlty rated as business and make up around $70,000 of the rates from religious use land. After applying the guidelines op shops are estimated to make up around $50,000 of the rates from religious use land.

Offices

39. There are 257 properties where part of the property is being used for an office.

40. Many of these offices are used for administrative purposes for the religious organisation, are a small part of the property and serve no commercial purpose. These offices are ancillary to the use of the property for religious worship and should be non-rateable.

41. However, some offices are larger and are providing administrative support to the wider religious organisation. These offices should be rated business and treated in the same manner as the offices operated by other charitable and community organisations.

42. All offices were rated as business in the non-rateable properties review and made up around $1m of the rates from religious use land. Offices make up the largest part of assessed rates for religious use land and account for the largest number of changes arising out of the non-rateable review. After applying the guidelines offices are estimated to make up around $600,000 of the rates from religious use land. In 2017/2018 offices were assessed rates of $500,000.

Libraries

43. There are 10 religious use properties where part of the property is being used as a library. Other libraries operated by schools or universities should be non-rateable. Rating treatment for these parts should be aligned to other libraries and zero rated by establishing a zero rates differential for these properties. Libraries were initially classified as business and made up around $37,000 of the rates from religious use land. After applying the guidelines libraries are estimated to only make up around $1,000 of the rates from religious use land. This is for waste charges only.

Overall impact

44. The table below shows how the application of the recommended guidelines impact on ratepayers assessed rates for 2018/2019. The table shows the number of ratepayers in each change band between rates initailly assessed for 2018/2019 and what they would be when the guidelines are applied.

Dollar Change	<-$1,000	-$1,000 to -$300	-$300 to -$50	-$50 to -$0	$0 to -$50	$50 to $300	$300 to $1,000	$1,000 to $5,000	$5,000 to $10,000	$10,000+
Initial assessment	39	28	33	312	98	37	85	232	49	29
Revised approach	54	31	37	348	124	113	47	134	33	21
Change	15	3	4	36	26	76	-38	-98	-16	-8

45. There is a reduction of 160 ratepayers facing increases of more than $300 from 395 to 235. Increases of more than $1,000 are primarily caused by one or more of the following factors:

· a siginifcant increase in the value of the property due to revaluation

· the identification of a business related activity, such as a funeral director or commercial carpark

· the identification of a large adminstrative office.

46. The table below shows the rates by activity for 2018/2019 after the application of the recommended guidelines.

Activity	Rating treatment	Rates 18/19 (GST excl)
Worship incl. halls used for religious education	Non-rateable (waste charges only)	$85,000
Ancillary to worship (e.g. small offices, non-commercial op shops and cafes, car parks)
Not for profit childcare (under the Education Act)
Business (e.g. car parks hired out commercially, large offices, commercial shops and cafes)	Business	$1,725,000
Commercial childcare	Business	$115,000
Community childcare	Residential	$2,000
Halls		$285,000
Residential		$750,000
Farm/lifestyle	Farm/lifestyle	$30,000

47. The majority of aditional rates comes from parts identified as having a business related activity or a large adminstrative office. Officers expect that the amount of rates from halls will be significantly reduced once further work has been undertaken with the owners of all the halls to ensure those primarily being used for religious worship or eductation are treated as non-rateable.

Transition management

48. Application of the guidelines recommended above results in a significant reduction in rates for a large number of religious use properties relative to those initially assessed from the non-rateable review. However, some religious use properties will still face large increase in rates.

49. For the reasons noted above many of the affected ratepayers were not aware of the likely scale of the changes and may not have been able to plan to accommodate the impact. The recommendations in this report propose additional changes. There may also be issues for those ratepayers who have opted to defer paying their rates until the issue has been considered by council. It is therefore appropriate to consider some form of rates transition for this year.

50. Officers recommend that a transition apply for this year with any increased rates coming into effect from 1 July 2019. The transition would be implemented by a grant applied directly as a credit to the rates account.

51. The transition would apply to those religious properties where a rateable non-commercial activity has been identified. The transitional grant would cover the rates increase due to all changes in rating treatment and the impact of the revaluation. Transition was not offered to other ratepayers to manage the impact of the 2017 revaluation. However, given the time taken to determine the issues discussed in this report, and the resulting uncertainty, officers consider a transition of the revaluation impacts is appropriate.

52. The transition would not apply to properties where commercial activity has been identified. These properties should be able to manage any additional rates from the commercial return from the activity.

53. Religious use properties that have seen a decrease in rates should receive their full decrease. This approach ensures that these ratepayers are treated equitably to other similar properties.

Conclusion

54. Given the substantial reduction in the change in rates for most properties officers recommend that the committee adopt the guidelines set out in the recommendations and the transition discussed above.

55. Application of the guidelines substantially reduces the change in rates for a large number of religious use properties. The change that remains is driven by the impact of the 2017 revaluation and the identification of property that should be rated according to Auckland Council’s rating policy in the same way that rates are applied to other ratepayers. The impact of this change is managed by the proposed transition.

56. Our initial review of the data shows that for most properties it is clear whether the property is principally used for religious purposes or whether the other activity is of significant scale e.g. small offices and op shops. However, for a few properties some additional research is required. In particular officers will need to work with property owners to establish the nature of use of halls.

Implementation

57. The implementation of the guidelines recommended in this report will be undertaken by officers. Implementation of the proposed rating treatment of libraries will require an amendment to the differentials in the Funding Impact Statement. This change will require the inclusion of a proposed amendment to the Funding Impact Statement in the draft Annual Plan 2019/2020. The amendment will propose the addition of libraries owned by non-commercial ratepayers into the zero-rating differential category.

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

58. Decision making on rates is the responsibility of the governing body. Officers have not sought the views of local boards. Most changes recommended in this report are changes to administrative guidelines. Local boards will have an opportunity to provide input into the proposal to zero-rate libraries owned by non-commercial ratepayers.

Tauākī whakaaweawe Māori / Māori impact statement

59. None of the properties identified as being used for religious use are on Maori land. Officers do not have information on Maori participation in the any of the religious organisations operating from the properties subject to this review. Maori will be impacted in a similar way to other members of these groups.

Ngā ritenga ā-pūtea / Financial implications

60. The recommendations of this report would see about $1 million less revenue received from religious use properties in 2018/2019. This is less than 0.1 per cent of total rates revenue, which is always subject to some variation due to movement in growth forecasts and corrections to the rates information database.

Ngā raru tūpono / Risks

61. There are no risks with the recommendations proposed in this report.

Ngā koringa ā-muri / Next steps

62. Officers will write to all ratepayers of religious use properties advising them of the council’s decisions, the implications for their property and who to contact to request further information.

Ngā tāpirihanga / Attachments

There are no attachments for this report.

Ngā kaihaina / Signatories

Authors

Aaron Matich - Principal Advisor – Financial Policy

Beth Sullivan - Principal Advisor Policy

Andrew Duncan - Manager Financial Policy

Authorisers

Ross Tucker - Acting General Manager, Financial Strategy and Planning

Matthew Walker - Group Chief Financial Officer

Finance and Performance Committee

20 November 2018

Proposed priorities for the 2019 letters of expectations to substantive council-controlled organisations

File No.: CP2018/21176

Te take mō te pūrongo / Purpose of the report

1. To propose priorities for inclusion in the 2019 letters of expectations to substantive council-controlled organisations (CCOs).

Whakarāpopototanga matua / Executive summary

2. The letters of expectations are important documents that provide direction on:

· the development of the substantive council-controlled organisations’ Statements of Intent for 2019-2022

· other priorities and issues of importance for the council to inform CCO operations, behaviours and service delivery.

3. These will be the first letters of expectations since the adoption of the Long-term Plan 2018-2028 and the Auckland Plan 2050.

4. The expectations are set out in two parts.

· Part I: Common organisational expectations and priorities for all CCOs. These include financial accountability and value for money, building on the group approach and Māori responsiveness.

· Part II: The key strategic areas each CCO should focus on.

5. The key messages have been drafted based on the priorities in the Long-term Plan 2018-2028, those identified in a workshop with councillors and through informal consultation with the CCOs.

6. The letters will be drafted on the basis of the committee’s resolutions and sent by Mayor Goff to the board chair of each substantive CCO in early December 2018.

Ngā tūtohunga / Recommendation/s

That the Finance and Performance Committee:

a) approve the proposed priorities for inclusion in the 2019 letters of expectations for substantive council-controlled organisations.

b) delegate representatives to discuss the agreed expectations directly with the CCO boards.

Horopaki / Context

Introduction

7. The 2019 letters of expectations are important documents that provide direction on:

· the development of the substantive council-controlled organisations Statements of Intent for 2019-2022

· other priorities and issues of importance for the council to inform CCO operations, behaviours and service delivery.

8. The letters should reflect the Long-term Plan 2018-2028 which sets out the investment plans for each CCO.

9. This paper sets out a scheme for the council’s proposed expectations in two parts:

Part I: Common organisational expectations and priorities for multiple or all CCOs

Part II: The key strategic areas each CCO should focus on.

10. The focus on fewer key strategic themes or messages should provide a clearer basis for accountability to the council.

11. Ports of Auckland Limited is not a CCO. The Statement of Corporate Intent for Ports of Auckland Limited was approved at the last Finance and Performance meeting (23 October 2018) and council will have the opportunity to set expectations for its 2019-2022 Statement of Corporate Intent next year.

Relation to other accountability mechanisms

12. The letters of expectations are one part of an overall accountability framework for substantive CCOs. Some other important parts of this framework are the:

· Statement of Intent: the Statement of Intent (SOI) sets out the activities and intentions of a CCO for the next year, and the objectives it will contribute to (the letters of expectations provide direction to them). CCOs report quarterly on progress towards achieving the objectives set out in the Statement of Intent.

· CCO accountability policy: the CCO accountability policy sets more enduring expectations about CCO priorities and behaviours, is part of the Long-term Plan 2018-2028 and is complementary to the letters of expectations.

· CCO governance manual: the CCO governance manual provides more detailed guidance on governance and operational matters to CCO boards and staff, and brings together key policies and other requirements.

Tātaritanga me ngā tohutohu / Analysis and advice

Proposed issues for the letters of expectations

13. The proposed expectations which are common to all CCOs are set out below. These were workshopped with the Finance and Performance Committee on the 23 October 2018, with the focus being on determining the high-level strategic priorities for each CCO. A summary of the key messages from the workshop were then provided to CCOs in draft format for their initial feedback.

Part I: Common messages

14. The proposed common expectations are focused on the following themes:

· focusing on delivery of council’s work programmes and providing value for money

· being more proactive in communicating with public and stakeholders to build trust and confidence, and to highlight successes; climate change - developing mitigation and resilience

· focusing on Auckland Plan implementation and Māori responsiveness.

15. The council also expects:

· CCO participation and support in council’s review of the Statement of Intent process

· CCO commitment to board performance reviews

· CCO commitment to working with council on reviewing performance measures.

Programme delivery

16. Council has set a significant agenda with a record capital expenditure investment of $26 billion and increased spending on transport, housing, environment and community initiatives. In the 2019/2020 year the focus will be on delivering our substantial capital projects, readying the city centre for the Americas Cup and APEC in 2021 and continuing to pursue savings, efficiencies and alternative financing opportunities.

17. Council would like to be kept informed of progress on this capital programme and the wider programmes of investment and where savings are being made. Council expects the CCOs to work collaboratively with the council group to advance the capital programme and to develop improved governance and capability around the delivery of these programmes.

Building trust and confidence

18. The new funding tools, including the regional fuel tax, and the water quality and environmental targeted rates, along with the council’s focus on delivery mean that it will be important for our CCOs to develop strong community engagement programmes. We will expect CCOs to work with the council group to lift trust levels amongst our community and stakeholders, by putting our customers and ratepayers at the centre of their businesses and by providing evidence-based analysis for any decisions made.

19. CCOs will be expected to monitor and report on the delivery of these programmes and their capital investment activity in transparent and easily understood way.

Auckland Plan implementation

20. Our CCOs play a critical role in responding to Auckland’s key challenges by delivering on the outcomes of the Auckland Plan 2050. This year, we would expect each CCO to outline in their Statement of Intent how they will:

· align priorities with the directions and focus areas and show how their activities will contribute to delivering the Auckland Plan outcomes

· support development and activity envisaged in the nodes, development areas, future urban areas and rural settlement expansion identified in the first decade of the Auckland Plan Development Strategy (including development of structure plans and plan change processes)

· report annually on activities that contribute to delivering the Auckland Plan 2050.

Climate Change

21. Addressing the challenges that climate change presents for Auckland is a priority for council. The impacts of climate change will require the application of new ideas and approaches to ensure that as a council group we respond to, mitigate and adapt to the effects of climate change.

22. We expect the CCOs to outline how they plan to address climate change in their areas of responsibility, including the development of any measures to assess their performance in this area.

Māori responsiveness

23. The council expects the CCOs to contribute to Te Toa Takatini and the council group Tiriti o Waitangi Audit response as an integral part of their work programme. We expect CCOs to provide detail on their performance in delivering their Māori responsiveness in their quarterly reporting.

Part II: Specific expectations for each council-controlled organisation

24. The specific expectations for each CCO are provided below.

Auckland Transport

25. Auckland Transport’s SOI should:

· strongly reflect the directions and focus areas of the Auckland Plan 2050. In particular, the SOI should outline how Auckland Transport will:

o deliver the safety strategy to reduce death and serious injuries on the Auckland transport network, including safety education for young Aucklanders and our rangatahi

o continue to increase uptake of public transport and walking and cycling

o deliver value for money in the approved Regional Land Transport Plan capital programme, including the Regional Fuel Tax initiatives

o investigate and invest in transport technology that improves the efficiency of the Auckland’s transport system

o improve transparency on critical asset maintenance programming

o work collaboratively with council to ensure the capital programme takes into account the impact of transport investment on surrounding urban form and incorporates good urban practice

· describe how Auckland Transport will improve communication with councillors, local board and customers, and have clear strategies for community engagement

· respond to emerging issues to prepare for operationalisation of the City Rail Link project.

Auckland Tourism, Events and Economic Development (ATEED)

26. ATEED’s SOI should outline how the organisation will:

· encourage sustainable growth of Auckland’s visitor economy through the lens of destination management and demonstrate value for money for Accommodation Providers Targeted Rate

· attract investment to Auckland by coordinating and promoting the Auckland Investment Story to grow business and employment in Auckland

· focus on economic development outcomes, especially in Auckland’s south and west, to meet challenges of new economy and mobilising central government agencies around Auckland needs

· ensure performance measures provide evidence of ATEED’s performance in generating new economic activity

Regional Facilities Auckland

27. Regional Facilities Auckland’s SOI should outline how the organisation will:

· work closely with council on any plans for strategic redevelopment of assets, particularly for stadiums

· actively engage with the council and arts and cultural institutions in the co-design of a strategy for the sector, and supporting governance and funding arrangements

· deliver on capital redevelopment programme and manage the business through these works to improve financial performance.

Panuku Development Auckland (Panuku)

28. Panuku’s SOI should outline how the organisation will:

· deliver the transform and unlock programme to help create our major centres as community catalysts for good design

· improve capex delivery and business planning

· work with ATEED, council and other CCOs on preparing for and the timely delivery of infrastructure to support the America’s Cup and APEC

· ensure community engagement assists decision-making and that the benefits of redevelopment to communities are fully explained

· work closely with council on the marina strategy.

Watercare Services Limited

29. Watercare’s SOI should outline how the organisation will:

· continue to work with the council to respond to any changes from the government’s review of how water, waste water and storm water services are regulated and delivered

· investigate commercial arrangements and other funding sources which are in the best interests of the council group. Noting that this should not compromise service for Aucklanders. Council expects to be kept informed of any proposals and significant changes will need to be approved by the council.

· stay on schedule and on budget for the delivery of the Central Interceptor project, including participating in ongoing work with the crown and council on its funding and on engaging with the community

· continue to work with the Healthy Waters department of council on the Western Isthmus Water Quality Improvement Programme. Watercare Services Limited should ensure it constructively engages the community on this project.

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

30. The governance relationship between the substantive CCOs and the council sits with the Governing Body, and therefore local boards have not been consulted on issues for inclusion in the letters of expectations.

31. This year there is an increased focus on ensuring that those CCOs with a role in place-shaping (particularly Auckland Transport, Watercare Services Limited, Panuku Development Auckland and Auckland Tourism, Events and Economic Development) are implementing their obligations to engage with local boards and their communities.

Tauākī whakaaweawe Māori / Māori impact statement

32. Māori responsiveness is a priority for the substantive CCOs and this is reflected in the common expectations proposed in the letters of expectations.

Ngā ritenga ā-pūtea / Financial implications

33. There are no financial implications arising from this report. The CCOs are being asked to focus on delivering activities agreed through the Long-term Plan 2018- 2028.

34. The CCOs are also being asked to pursue savings, efficiencies and alternative financing opportunities.

Ngā raru tūpono / Risks

35. There is a risk that CCOs may misunderstand the expectations provided in the letters of expectations. It is suggested that the committee could delegate representatives to discuss the agreed expectations directly with the CCO boards.

Ngā koringa ā-muri / Next steps

36. Council staff will draft the letters of expectations based on the resolutions of this committee and including only the issues that are approved by this committee. The mayor will send the letters to CCO board chairs during December 2018.

37. Each CCO must provide a draft Statement of Intent to the council no later than 1 March 2019.

Ngā tāpirihanga / Attachments

There are no attachments for this report.

Ngā kaihaina / Signatories

Author

Claire Gomas - Principal Advisor

Authorisers

Alastair Cameron - Manager - CCO Governance & External Partnerships

Phil Wilson - Governance Director

Matthew Walker - Group Chief Financial Officer

Finance and Performance Committee

20 November 2018

Disposal recommendations report - 34 Moore Street, Howick

File No.: CP2018/06356

Te take mō te pūrongo / Purpose of the report

1. To obtain approval to dispose of one council-owned property that Panuku Development Auckland (Panuku) considers suitable for disposal.

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. Panuku has a particular focus on achieving housing and urban regeneration outcomes. Identifying properties with potential for development or sale contributes to the Auckland Plan focus of accommodating the significant growth projected for the region over the coming decades.

3. 34 Moore Street, Howick is a commercial property that Auckland Council has advised does not need to be retained to deliver a council service.

4. Panuku has assessed the development potential of the property and considers it suitable for an exemplar mixed use or residential development which can contribute towards additional housing supply in Auckland.

5. 34 Moore Street was presented to the Finance and Performance Committee in 2013 and 2014. In 2014 the Finance and Performance Committee deferred its decision on this property following a request from the Howick Local Board. This was to provide to time for the Howick Village Centre Plan to be completed in order to identify the highest and best future use of this property. The Howick Village Centre Plan has been completed and was adopted by the Howick Local Board in June 2017.

6. The Howick Village Centre plan identifies 34 Moore Street as a strategically located site which, if developed, would provide the opportunity to support and enhance the Howick Village by offering additional residential dwellings and retail, improved connections and well-integrated public spaces. A key action in the Plan is for the Howick Local Board to work with Panuku on the development of 34 Moore Street.

7. The Howick Local Board resolved at its 15 October 2018 business meeting its continued opposition to the proposed disposal of 34 Moore Street. At the request of the Howick Local Board, Panuku (and previously ACPL) have liaised with council departments multiple times since 2011 to ascertain if 34 Moore Street is required for a council purpose. Council has consistently advised that no current or future council service use that is funded, or can realistically be funded in the future, has been identified for the property.

8. Council’s Community Facilities Asset Management Intelligence Support team has advised that should 34 Moore Street be retained, it requires urgent remedial work to be undertaken to ensure the structural integrity of the building and prevent further deterioration. Should this property be retained, an estimate of the cost of these works is $800,000. The Asset Management Intelligence Support team has further advised that these costs will escalate considerably should there be a delay in undertaking the remedial works required to retain this property.

9. As 34 Moore Street is not required to be retained for a council purpose, Panuku recommends that it be divested for mixed use development purposes, with appropriate controls to ensure strategic outcomes in line with the Panuku SOI development objectives and the Howick Village Centre Plan, specifically town centre regeneration and housing outcomes. Given the current shortfall in housing in Auckland, 34 Moore Street has the opportunity to provide much needed additional residential dwellings to the Auckland market.

Ngā tūtohunga / Recommendation/s

That the Finance and Performance Committee:

a) approve subject to the satisfactory conclusion of any required statutory processes the disposal of the property at 34 Moore Street, Howick, comprised of an estate in fee simple more or less being Lot 4 DP 91111, Lot 3 DP 91111 and Lot 2 DP 91111 contained in computer freehold registers NA48B/510, NA48B/509 and NA48B/508 subject to appropriate controls to ensure housing outcomes in line with the Panuku SOI development objectives and the Howick Village Centre Plan;

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

Horopaki / Context

10. Panuku is required to undertake ongoing review of council’s property assets. This includes identifying properties in the council portfolio that are no longer required for public work purposes and may be suitable for sale, and development if appropriate.

11. Once a property has been identified as no longer required for current public work purposes, Panuku engages with the council and its CCOs to establish whether the property must be retained for a strategic purpose or is required for a future funded public work. Once a property has been internally cleared of any public work requirements, Panuku then consults with local boards, mana whenua and relevant ward councillors. All sale recommendations must be approved by the Panuku Board before a final recommendation is made to Auckland Council’s Finance and Performance Committee. The committee has the delegated authority to approve any proposed disposal.

Tātaritanga me ngā tohutohu / Analysis and advice

Property information

12. 34 Moore Street, Howick is a vacant commercial property located on a 3754m² site. The property was acquired in the 1970’s for the purpose of accommodating the former Howick Borough Council offices. In 1995 the property was no longer required for this purpose and was leased out on a commercial basis, primarily to NZ Police. It has been vacant since 2016 and due to its age and condition requires extensive refurbishment.

13. The Auckland Unitary Plan zoning is Business – Mixed Use. The property has a 2017 capital valuation of $4.67 million.

14. 34 Moore Street is not subject to offer back obligations to the former owner in accordance with section 40 of the Public Works Act 1981.

15. The proposed disposal of 34 Moore Street is not deemed to be significant under Auckland Council’s Significance and Engagement Policy. The disposal of surplus assets to repay debt or fund new infrastructure is contemplated in Volume 2 of the council’s Long Term Plan.

16. Images of the property are included as Attachment A to this report.

Internal consultation

17. Internal consultation with council business units and CCOs for this property commenced in 2011 and has been revisited in 2013, 2017 and 2018. No alternative public work use has been identified. The following advice has been received from council departments.

18. The council’s Heritage team advised that 34 Moore Street is not considered to be a heritage building and is unlikely to meet the criteria for scheduling in the Auckland Unitary Plan. An archaeological assessment reported that there are no recorded archaeological or other historic heritage sites located within 80 metres of the property.

19. The council’s Community Leasing team advised there is no requirement for the property in its leasing portfolio. The Community Leasing team undertook an expressions of interest process for potential community use of 34 Moore Street in March 2017. No expressions of interest were received from the community as part of that process.

20. The councils’ Community Places team advised there is no requirement for 34 Moore Street for casual bookable space. The 2017 Howick Information Centre Review and Community Needs Assessment Report explored the requirements for and availability of casual and permanent community space in the Howick (and slightly wider) area. The report found that there is not a shortage of community facilities in the Howick area for community groups seeking casual (including regular) bookings. Other community spaces in the Howick area are operating well below capacity.

21. In 2018, at the request of the local board, council’s Corporate Property team assessed the suitability of 34 Moore Street as a local board office and concluded that due to its size, configuration and extensive fit out costs as well as ongoing operational costs, the property is not a viable option for a local board office.

Housing opportunity

22. Panuku has identified Howick as being a “Support” location within its development programme. As 34 Moore Street is not required for a council service use, Panuku has assessed the development potential of it and considers it suitable for an exemplar mixed use or residential development, in line with its development objectives. The development of the property is supported in the Howick Village Centre Plan, specifically the opportunity this property provides for additional residential dwellings, retail and well-integrated public spaces^{^[1]} in the Howick Village.

23. Given the current shortage of residential dwellings in Auckland, this property provides an opportunity to deliver much needed additional residential dwellings to the Auckland housing market, in accordance with the Panuku development objectives and the Auckland Plan. The development of this property also achieves some of actions and outcomes envisaged in the Howick Village Centre Plan.

Options to retain property

24. If 34 Moore Street is retained as a community facility or for community leasing purposes, Auckland Council will either have to provide unbudgeted capex and opex not forecasted in the LTP, or funding will need to be reallocated from higher priority planned and funded community facilities in other parts of the region to meet the operational costs of 34 Moore Street.

25. There are issues with the structural integrity of this building. Required and recommended remedial works to enable 34 Moore Street to be fit for leasing are estimated to be approximately $800,000, and are expected to increase should these works be further deferred. Further details about these costs are set out in paragraphs 50 and 51 of this report.

26. Panuku has managed 34 Moore Street through a number of deferred decisions relating to its future. The uncertainty about the future of this property has resulted in difficulties in obtaining a long term commercial tenant and provide revenue to our shareholder. Should the Finance and Performance Committee decline a disposal of the 34 Moore Street for housing purposes, the Committee is requested to provide clear instruction on the future management of the property, including a defined public work use or if it is to be commercially leased on a long term basis; confirmation of budgets to undertake urgent remedial works required to retain the property; or if there is a defined strategic purpose to hold the property and the timeframes the property will be held in council ownership.

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

27. 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.

28. The Howick Local Board resolved in June 2013 its opposition to the disposal of 34 Moore Street on the basis that it views the property as being of strategic importance to the Howick Village and considers that the property should be held for an as yet unidentified strategic purpose or used to deliver a community service.

29. In 2013 the local board submitted a business case to support retention of the property. An assessment by the Portfolio Review Steering Group (PRSG) declined the business case, advising it lacked sufficient financial analysis and evidence-based rationale to support retention of the property. A further PRSG review of the business case following the Strategy and Finance Committee’s 4 July 2013 meeting confirmed the conclusion of the previous assessment.

30. The 4 July 2013 Strategy and Finance Committee meeting resolutions are included in Attachment B to this report.

31. In 2014, at the request of the local board, the Finance and Performance Committee agreed to defer its decision on the property pending completion of the Howick Village Centre Plan in order to identify the highest and best future use for the property.

32. The 16 April 2014 Finance and Performance Committee meeting resolutions are included in Attachment C to this report.

33. The Howick Village Centre Plan was adopted by the Howick Local Board in June 2017. The plan describes 34 Moore Street as a key site in a strategic location, offering an opportunity to create building frontage onto Fencible Drive which would further develop the village centre. Any future development of the site will support and enhance the village atmosphere, offering improved connections, additional retail and residential, and well-integrated public spaces^{^[2]}.

34. Key actions set out in the Plan are to ensure that future development of council owned sites within the village, in particular 34 Moore Street, enhance the village atmosphere^{^[3]}, and for the local board to work with Panuku on the development of council owned sites within the village, particularly 34 Moore Street^{^[4]}.

35. Pages 1, 23, 24 and 36 of the Howick Village Centre Plan are included in Attachment D to this report.

36. Following the completion of the Howick Village Centre Plan, Panuku attended three workshops with the Howick Local Board, most recently in September 2018. Various options for the property, such as retaining the property for a public work, have been investigated and were discussed. Previous and ongoing advice from council business units was reiterated; the property is not required by the council for a current or future public work that is funded or can realistically be funded in the future.

37. At the workshop, Panuku set out the reasons it considers 34 Moore Street suitable for development and would be recommended to the council for disposal for this purpose. If approved for disposal, development of the property would be controlled by a development agreement, ensuring high quality design and outcomes in line with the Howick Village Centre Plan and Panuku SOI development objectives. Local board members requested involvement in any urban design brief. Panuku agreed that constructive input from the local board into a design brief could be accommodated.

38. Although consistent advice from council business units is that the property is not required for a public work, local board members provided feedback that they consider there is a need for community space at this property. Panuku advised that if the Howick Local Board secures funding for a community space, consideration can be given to how this could be incorporated in a new development.

39. At its 15 October 2018 business meeting, the Howick Local Board reconfirmed its opposition to the proposed disposal of 34 Moore Street, resolving that the property is viewed as being strategic due to its location; that a full strategic analysis was not undertaken as part of the Howick Village Centre Plan; that the board has identified uses for the property that are not council public work uses; requests the opportunity to undertake additional future use feasibility assessments and that the local board could potentially fund or part fund the additional feasibility assessments.

40. The Howick Local Board’s 15 October 2018 business meeting resolutions are included in Attachment E to this report.

41. As part of Panuku’s due diligence, it has reviewed the 2011, 2014 and 2017 Howick Local Board Plans. 34 Moore Street is not specifically mentioned in the Howick Local Board Plan, and the development of a multi-use community facility within the Howick Village is not stated as a priority outcome in the Howick Local Board Plan, nor is it a local board initiative.

42. A review of the Howick Information Centre Review and Community Needs Assessment Report identifies that the Howick Village area has an existing high level of provision, with three council-owned community facilities available to the local community for casual (one-off and regular) bookings. There are approximately 74 community leases to groups in the Howick Local Board area, including a number in the Howick Village area with the potential for space-sharing capacity, including for casual bookings.

Tauākī whakaaweawe Māori / Māori impact statement

43. 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.

44. 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.

45. 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.

46. 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.

47. 11 iwi authorities were contacted regarding the potential sale of 34 Moore Street, Howick.

The following feedback was received.

a) Ngāti Whatua Orakei

Ngāti Whatua Orakei advised there are no site specific cultural significance issues and registered a commercial interest. If approved for disposal, Panuku will follow up with Ngāti Whatua Orakei on potential commercial opportunities.

b) Te Kawerau a Maki

Te Kawerau a Maki advised there are no site specific cultural significance issues and registered a commercial interest. If approved for disposal, Panuku will follow up with Te Kawerau a Maki on potential commercial opportunities.

c) Ngāi Tai ki Tāmaki

No feedback was received regarding the subject property.

d) Ngāti Tamaoho

Ngāti Tamaoho advised there are no site specific cultural significance issues.

e) Te Akitai – Waiohua

No feedback was received regarding the subject property.

f) Ngāti Te Ata Waiohua

Ngāti Te Ata Waiohua advised there are no site specific cultural significance issues.

g) Ngāti Paoa

Ngāti Paoa advised there are no site specific cultural significance issues and registered a commercial interest. If approved for disposal, Panuku will follow up with Ngāti Paoa on potential commercial opportunities.

h) Ngaati Whanaunga

No feedback was received regarding the subject property.

i) Ngāti Maru

No feedback was received regarding the subject property.

j) Ngāti Tamatera

No feedback was received regarding the subject property.

k) Patukirikiri

No feedback was received regarding the subject property.

Ngā ritenga ā-pūtea / Financial implications

48. Capital receipts from the sale of properties not required by Auckland Council 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.

49. 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.

50. Council’s Community Facilities Asset Management Intelligence Support team have advised that works to 34 Moore Street need to be undertaken as soon as possible to ensure the structural integrity of the building and prevent further deterioration. Required and recommended works are estimated to be approximately $800,000, including invasive inspection and works to remediate weather tightness issues to the property’s roof, timber walls and window framing.

51. The consequences of not undertaking either the required works or the recommended works will further accelerate deterioration of the defective areas and significantly increase future costs to remediate the property. Any interior refurbishment of 34 Moore Street to the standard expected for a property in the community leasing, community places portfolio or for commercial leasing purposes would be extensive and is recommended for deferral until the weather tightness issues have been resolved.

52. Ongoing operational costs for the property, including utilities, rates, and repairs and maintenance range from $25,000 to $57,000 per annum depending on occupancy.

Ngā raru tūpono / Risks

53. 34 Moore Street is not required for a council service use. The following are potential risks of retaining 34 Moore Street:

· Auckland Council not realising the approximate $4.67 million value from the sale of the property;

· Auckland Council incurring the cost of approximately $800,000 of unplanned, unfunded remedial works to ensure the structural integrity of the building and prevent further deterioration;

· a lost opportunity to develop the property to deliver additional residential dwellings in line with the Panuku development objectives, the Auckland Plan and at a time of a major housing shortage in Auckland;

· a lost opportunity to develop the property and enhance the Howick Village atmosphere in line with outcomes/actions set out in the Howick Village Centre Plan;

· if 34 Moore Street is retained as a community facility or for community leasing purposes, the need to either provide unbudgeted operational expenditure not forecasted in the LTP, or to reallocate funding from higher priority planned and funded community facilities in other parts of the region to meet the capex and opex costs of 34 Moore Street;

· an over provision of community space in the Howick Local Board area relative to other parts of the region.

Ngā koringa ā-muri / Next steps

54. Should the Finance and Performance Committee approve the proposed disposal of 34 Moore Street, Panuku will dispose of this site in a manner which achieves additional housing and provides the strategic outcomes envisaged in the Howick Village Centre Plan.

55. There has been historical interest from iwi groups and from the public in acquiring the property. This will be explored further should the Finance and Performance Committee approve the proposed disposal.

56. Should the Finance and Performance Committee not approve the disposal of 34 Moore Street, clear direction is sought on the future management of this property, including the reason and timeframe for retaining the property and the provision of a budget to complete the urgent remedial works required to ensure the structural integrity of the building and prevent further deterioration, estimated to cost approximately $800,000.

Ngā tāpirihanga / Attachments

No.	Title	Page
a ⇩	Images of 34 Moore Street, Howick	37
b ⇩	Strategy and Finance Committee meeting 4 July 2013 minutes extract	39
c ⇩	Finance and Performance Committee meeting 16 April 2014 minutes extract	43
d ⇩	Howick Village Centre Plan extract	49
e ⇩	Howick Local Board meeting 15 October 2018 minutes extract	53

Ngā kaihaina / Signatories

Author

Anthony Lewis - Senior Advisor, Portfolio Review, Panuku Development Auckland

Authorisers

Rachel Hume - 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

Finance and Performance Committee

20 November 2018

Update on Speedway Relocation

File No.: CP2018/20014

Te take mō te pūrongo / Purpose of the report

1. To provide an update and seek approval to proceed with the proposed move of speedway from Western Springs to Colin Dale Park.

Whakarāpopototanga matua / Executive summary

2. It has been long signalled the desire to move speedway from its current Western Springs site, and Regional Facilities Auckland (RFA) and speedway promoters have investigated a number of alternative sites. Particularly after the implementation of an Enforcement Order in 2005 resulted in the number of speedway events being capped at 12 per year with two practice sessions.

3. Springs Promotions Ltd (SPL) approached Council in regard to moving speedway events from Western Springs to Colin Dale Park in Manukau. Subsequently these parties (with RFA) entered into a Memorandum of Understanding (MoU) in June 2018 to investigate providing the opportunity for SPL and its speedway events to relocate from Western Springs Park to Colin Dale Park.

4. The MoU was signed on 8 June 2018 and set a 90-day timeframe to assess the feasibility of moving speedway to Colin Dale Park. The MoU has been extended to 23 November 2018.

5. This investigation identified that speedway could move to Colin Dale Park.

6. The proposed move of speedway from Western Springs to Colin Dale Park is supported by the Parks, Sports and Recreation department for a number of reasons, including aligning with plans to create concentrated provision of motorsport activities, the location would be more appropriate for motorsport activity and would build on the earlier investment in Colin Dale Park to create a regional motorsport precinct. This is further detailed in paragraph 27.

7. The next steps (as indicted at the Finance and Performance workshop on 11 September 2018) were to undertake a high-level cost assessment and negotiate a conditional development agreement (DA) which would set out the responsibilities of each party.

8. The purpose of this report is to seek approval to proceed with the proposal to move speedway from Western Springs to Colin Dale Park and seek budget for this.

9. Colin Dale Park is currently a stalled and uncompleted regional motorsport park with no service connections (Attachment A). The development of the park could not be completed as envisioned due to a council wide capex review in 2014. At that time, the Local Board decided to contribute $2.8 million through debt funding to complete minimal but necessary works (Finance and Performance forgave the remainder of this debt in May 2018). The full cost for completion of landlord works at that time was $6.3 million, the cost is now estimated at $9.9 million based on concept design (including $2 million of contingency). If this committee endorses proceeding with the proposal, detailed design will be undertaken to refine this cost.

10. The budget this paper is seeking $5 million to be transferred from RFA and then $4.9 million in the 2019/2020 Annual Plan for landlord enabling work to complete the regional motorsport park for the benefit of the whole of Colin Dale Park. These include completing the parking area and internal roads, providing park signs, providing lighting in public areas, installing the bore and providing services to the site.

11. Landlord works were not contemplated for in the MoU. The MoU stated council would provide “$10 million plus GST, to construct the speedway track and stadium at Colin Dale Park” and would endeavour to procure “additional grant of funding to SPL of $2.5 million to construct the speedway track and stadium at Colin Dale Park”, while SPL would “be responsible for securing all additional funding required for SPL’s relocation to Colin Dale Park”. After concept design and assessment of costs, it has been identified that an additional $20 million is being sought in the 2019/2020 Annual Plan to complete enabling works for speedway such as earthworks to create the track, bringing services to the site, provision of toilets, pits for contestants, and moving the light poles and fence from Western Springs. This would enable speedway events to occur which met Speedway New Zealand’s standards. Any additional work for the “fan experience” (such as a clubrooms, food and beverage provision, large screens) would be funded by the speedway promoter. It is proposed that this amount acts as a cap, and through detailed design and aggressive value management this number is refined and the ultimate cost is reduced.

12. Failure to make the move to Colin Dale Park in the timeframes contemplated would see speedway ceasing to operate at Western Springs after March 2020, in accordance with a resolution from RFA’s Board.

13. The Ōtara-Papatoetoe Local Board is highly supportive of speedway moving to Colin Dale Park. If endorsed, staff would then take the project to the Local Board for their formal approval in accordance with their delegation.

Ngā tūtohunga / Recommendation/s

That the Finance and Performance Committee:

a) endorse council entering into a conditional development agreement for the relocation of speedway events to Colin Dale Park.

b) approve the continued work to enable the relocation of speedway events from Western Springs to Colin Dale Park.

c) approve the transfer of an existing $5 million capital expenditure budget in 2018/2019 from Regional Facilities Auckland for enabling landlord works.

d) note there will be an additional capital budget request to a maximum of $4.9 million for enabling landlord works as part of the 2019/2020 Annual Plan process.

e) note there will be an additional capital budget request to a maximum of $20 million for construction of the speedway track and basic amenities for speedway events as part of the 2019/2020 Annual Plan process.

Horopaki / Context

14. Colin Dale Park was purchased by Manukau City Council (MCC) in 2003 for motorsport activities, following a regional process which identified a lack of space for motorsport activities. At that time, it was anticipated that speedway would move here.

15. Colin Dale Park is approximately 56 hectares in size and zoned for open space. The motorsport precinct is 44.3 hectares in size, it is a Recreation Reserve and is the subject of this report. There is 2 hectares of esplanade reserve. The remaining 10 hectares is Local Purpose Reserve. It is currently vacant and has an agreement to lease signed between MCC and Te Ara Rangatu o Te Iwi o Ngᾱti Te Ata Waiohua Incorporated in October 2010. Any future use of this site would need access across the wider site.

16. Colin Dale Park has an Outstanding Natural Feature overlay across the southeastern corner of the park for the protection of the northern tuff edge of Pond Crater. It is located 2.5 kilometres from the Auckland International Airport Limited (AIAL) runway and is located beneath the AIAL obstacle limitation surfaces overlay. In addition, Watercare’s southwestern interceptor line crosses through the site near the western edge of the motorsport precinct boundary.

17. The Ōtara-Papatoetoe Local Board has delegation to manage Colin Dale Park with the support of the Parks, Sports and Recreation department. There is a motorsport user group management committee which generally meets monthly.

18. There are currently two commercial users operating on-site (jet sprint and motocross) with leases issued for three community groups to operate once their facilities are completed (off-road racing, radio controlled cars and BMX) and Kartsport Mt Wellington is currently negotiating a lease.

19. There are resource consents for the site issued in December 2014. The development of the park was not completed as envisioned due to a council wide capex review in 2014. The Local Board decided to contribute $2.8 million through debt funding (annually as $280,000 in perpetuity) to complete necessary works. The full cost would have been $6.3 million. The Finance and Performance Committee made a decision in May 2018 to forgive the remaining debt obligation. The Local Board has asked that Colin Dale Park be made a regional park, however this has not been determined. There is no available budget to complete the regional motorsport park at Colin Dale Park.

Tātaritanga me ngā tohutohu / Analysis and advice

20. The proposal is to undertake preparation works in 2019 and relocate speedway from Western Springs to Colin Dale Park during 2020. It is anticipated that:

a) A world class motorsport venue would be created;

b) There would be the ability to increase speedway events from the current 12 to 20 or 22 each summer with two practice events. (Noting that a potential event schedule has not been finalised);

c) It would operate on Friday and Saturday (as it does currently). It is anticipated that there could be a limit on the number of vehicles on a Friday night due to the existing busy road environment in the vicinity of Colin Dale Park;

d) Similar operating hours of 6.00pm to 10.30pm with competitors and crew arriving from 2pm;

e) Spectator numbers are expected to be in the range of 6,000 to 8,000;

f) Traffic assessment has identified that, at maximum capacity, this would be 2,370 vehicles. There are 848 consented carpark spaces at Colin Dale Park (but only 238 built) and some overflow parking would be required to occur in Puhinui Reserve;

g) An incorporated society, charity trust or similar organisation would hold the lease. This is currently being worked through and will be known before a lease is entered into;

h) The proposed lease term would be 10 years with two rights of renewal for 10 years each. The Parks, Sports and Recreation department advise that the proposed lease term is not dissimilar to some leases for other large developments on park land, such as hockey, clubrooms and surf clubs; and

i) During the off-season, other organisations and community groups would be able to hire the clubrooms and/or the inner pitch.

21. During the MoU period, a number of locations within Colin Dale Park were considered for speedway and these were discussed with the Ōtara-Papatoetoe Local Board, Te Ara Rangatu o Te Iwi o Ngᾱti Te Ata Waiohua Incorporated and the Colin Dale Park motorsport user group management committee. A preferred location was chosen (see Attachment B) because it minimized sun strike for the speedway track, had easy access for transport and services, avoided a number of key constraints (such as the outstanding natural feature), and would not result in existing lessees needing to relocate. The preferred site has originally been intended for Kartsport Mt Wellington, but for their own reasons Kartsport did not sign the lease and has not developed the site. In June 2018, Kartsport offered to instead accept a lease and develop an alternative (vacant) site on the western edge of the motorsport precinct.

22. A number of investigations were completed within the MoU period in order to assess the feasibility of moving speedway to Colin Dale Park. These were:

- Traffic;

- Aeronautical; and

- Access to services.

23. These feasibility assessments identified that it is possible for speedway to relocate to Colin Dale Park with some workable conditions. Since the Finance and Performance workshop on 11 September 2018, a high level cost estimate has been undertaken and council entered into negotiations with the speedway promoter. The MoU date was extended to cover the negotiation period. If this committee endorses this report, council will sign a conditional development agreement (DA) with SPL for the development and if all these conditions are met, then a lease for the preferred location can be entered into.

24. The DA will be conditional on several factors, as well as governance and statutory requirements, including a satisfactory endorsement from this committee and approval from Ōtara-Papatoetoe Local Board. It would also set out the responsibilities of each party. The draft DA sets out that council will:

- Undertake various enabling landlord works which were originally planned (and consented) for the motorsport precinct in Colin Dale Park. These include completing the parking area and internal roads, providing lighting in the public areas, installing the bore and providing services to the site. It will also enable the stopping of the road through Pond Crater and enabling future restoration of this feature, with access to Puhinui Reserve through Colin Dale Park. These works are required to create a suitable motorsport venue and will be utilised by users and lessees of Colin Dale Park and Puhinui Reserve;

- Seek to amend (or obtain new) resource consent where necessary for these landlord works. For example, the time period of the existing resource consent for earthworks will lapse soon and earthworks are required to complete the carparking and internal roading network, as well as for several lessee to complete their tracks;

- Obtain budget and governance approval;

- Seek to change the delegation from Ōtara-Papatoetoe Local Board to Governing Body to more appropriately reflect the regional nature of motorsport activities. This takes into account the Local Board’s desire for regional funding set out in their Local Board Plan and their One Local Initiative (Oli) to the Long-term Plan 2018-2028. As part of this investigation, consider whether changing from the Reserve Act status to Local Government Act 2002 (LGA) for Colin Dale Park would be more appropriate due to the mixed recreational and commercial activities on the site. As part of this, consider whether it would be appropriate to seek protection in perpetuity from disposition under s139 of the LGA.

- Continue to engage with Ōtara-Papatoetoe Local Board, Te Ara Rangatu o Te Iwi o Ngᾱti Te Ata Waiohua Incorporated and Colin Dale Park motorsport user group management committee, mana whenua for the area, and other key stakeholders such as the New Zealand Transport Agency, Auckland Transport and AIAL;

- Provide service connection to the boundary;

- Ensure the speedway design continues to meet Civil Aviation Authority and airport obstacle limitation surfaces thresholds; and

- Move the lights and fencing from Western Springs.

25. The draft DA states, in return, SPL will:

- Seek resource consent for its proposed development including its clubrooms building, earthworks and traffic movements;

- Manage the relationship with drivers and the fan-base;

- Co-fund the development alongside council;

- Appoint a project manager to manage the planning and build;

- Construct the clubrooms, spectator facilities and a world class track;

- Connect their site to the services;

- Investigate what structure will hold the lease, such as an incorporated society or charity, before the lease is entered into;

- Consider social outcomes and how best to enable multi-use of their facility;

- Work with the current leaseholders at Colin Dale Park including coordinating the yearly event calendar; and

- Install the lights and fencing that is moved from Western Springs.

26. Ancillary to this, it is anticipated that RFA would extend SPL’s lease at Western Springs (expected to be another year) to enable SPL to have time to undertake preparation and construction work at Colin Dale Park.

27. The proposed move of speedway from Western Springs to Colin Dale Park is supported by the Parks, Sports and Recreation department for the following reasons:

- It aligns with the key goal of the Auckland Sport Sector: Facility Priorities Plan 2017 (Facilities Priorities Plan) which is to “promote and prioritise investment into partnerships to provide multisport and multi-use recreation and sport facilities”. The Facilities Priorities Plan provides guidance on how to ensure our existing facilities are fully utilised, fit for purpose and managed efficiently to maximise the return on investment. It uses motorsports as an example of a ‘concentrated provision model’ which have the advantages of being cost effective, leveraging off the use of joint facilities, zoned appropriately and better quality facilities.

- Adopting the concentrated provision model, Colin Dale Park and its existing users will benefit from the increased participant and visitor numbers, enhanced infrastructure, increased profile, improved security, and sharing of facilities and resources that will be achieved with the introduction of speedway.

- The move of speedway from Western Springs to Colin Dale Park would enable the completion of the regional motorsport park at Colin Dale Park which was envisaged in 2003. This would make the most out of MCC and the Ōtara-Papatoetoe Local Board’s early investment in the park.

- It would also enable the moving of speedway events from an urban area and the sport would then be able to occur at full capacity in the new location without the enforcement order limiting it to 12 events.

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

28. Since 8 June 2018, staff have presented to workshops of the Ōtara-Papatoetoe Local Board a number of times. Staff most recently updated the local board on 6 November 2018.

29. Ōtara-Papatoetoe Local Board is highly supportive of speedway moving to Colin Dale Park and through the anticipated landlord work, realising the original 2003 vision of a regional motorsport park.

30. However the local board is clear that future funding for Colin Dale Park should be from a regional fund as users of the park come from all over Auckland and the majority of users are from outside the local board area. It is anticipated that this would be exasperated by speedway. This is set out in their Local Board Plan 2017:

We currently fund the new Colin Dale Motorsport Park which serves communities outside Ōtara-Papatoetoe. We will advocate to the Governing Body for it to be taken over and managed as a regional park so that it is funded in a way that recognises its regional benefit.

31. If this committee endorse this report, then staff will immediately take the project to the Local Board for their formal approval in accordance with their delegation.

Tauākī whakaaweawe Māori / Māori impact statement

32. It is understood that the Puhinui area has significant cultural, spiritual and historical values to mana whenua.

33. Ngᾱti Ata has an agreement to lease land which forms part of Colin Dale Park (but is not within the motorsport precinct). As such, staff have engaged with rangatira of Te Ara Rangatu o Te Iwi o Ngᾱti Te Ata Waiohua Incorporated on the proposal and kept them informed of developments. Ngᾱti Te Ata is interested in how future developments within the motorsport precinct could connect into future development on their site. If this committee endorses this report, further engagement is planned to investigate how the enabling landlord works could assist with Nᾱati Te Ata’s development options.

34. Next staff will engage with all mana whenua through the Parks, Sports and Recreation Mana Whenua Forum for central and south. This would include the three iwi (Te Ākitai Waiohua and Ngᾱti Tamaoho, as well as Ngᾱti Te Ata) who expressed interest in being involved in the formal hearing process for the rezoning of Colin Dale Park in 2014. It is on the agenda for the next Mana Whenua Forum on 28 November 2018.

Ngā ritenga ā-pūtea / Financial implications

35. Development of motorsport precinct in Colin Dale Park was not completed as envisioned due to a council wide capex review in 2014. The Local Board decided at that time to contribute $2.8 million to complete some of the landlord works. The full cost would have been $6.3 million at that time and it is anticipated to be $9.9 million now (based on concept design).

36. To relocate speedway from Western Springs to Colin Dale Park and to complete the enabling landlord works required, the following funding is sought:

- transfer of $5 million capital expenditure budget in 2018/2019 from RFA. This is an existing budget;

- will be an additional capital budget request to a maximum of $4.9 million for enabling landlord works as part of the 2019/2020 Annual Plan process; and

- there will be an additional capital budget request to a maximum of $20 million for construction of the speedway track and basic amenities for speedway events as part of the 2019/2020 Annual Plan process.

37. Council will cap their financial contribution at $29.9 million (including the $5 million to be transferred from RFA) which would cover landlord enabling work for the benefit of the whole of Colin Dale Park, and site enabling works for speedway such as earthworks, basic provision for events (pits and toilets), as well as moving the light poles and fence from Western Springs. Additional work for the “fan experience” will be funded by the speedway promoter. These costs have been identified through an assessment of the proposed development based on concept design. If this committee endorses proceeding with the proposal, detailed design will be undertaken to refine this cost (for example, a geotechnical assessment will occur to determine if there is basalt rock and if not, this cost can be removed). This process will be aggressively value managed and it is anticipated that the ultimate cost will be reduced. At the same time, staff would seek to work with neighbouring developers to obtain efficiencies in infrastructure provision.

Ngā raru tūpono / Risks

38. The key risks to be managed are:

- Timing – it will be a tight timeframe to obtain approvals, resource consent and complete construction in order for speedway to move from Western Springs to Colin Dale Park by October 2020. The majority of this risk sits with SPL who will be leading the move process, however council would need to undertake its tasks in a timely manner;

- Service connections – there is a significant cost in connecting Colin Dale Park to services and there is a risk that cost efficiencies cannot be made if no agreement is reached with neighbouring developers on timing and shared water and wastewater connections;

- Traffic – the feasibility work undertaken has identified speedway can move from Western Springs to Colin Dale Park without adversely affecting the traffic environment if there are controls on traffic volumes on Friday nights. It recommends the provision of an auxiliary left turn lane at the existing Prices Road/State Highway 20B intersection to accommodate the anticipated number of turning movements (subject to any potential upgrades of this intersection by other developments) and states Prices Road does not need upgrading “it is excepted the existing carriageway width and form will accommodation the anticipated number of vehicle movements”. However, approval will need to be obtained from the New Zealand Transport Agency and resource consent obtained for this factor;

- Financial – the costs of landlord works and the speedway build would be kept within the agreed cost envelope. Council will cap their financial contribution and any additional development for the “fan experience” will be funded by the speedway promoter. A comprehensive detailed design process will be undertaken to further refine this cost; and

- There is also the reputation risk to Auckland if this proposal cannot be completed.

Ngā koringa ā-muri / Next steps

39. If this committee endorses proceeding with the relocation of speedway from Western Springs to Colin Dale Park, the next steps would be:

- Obtain Ōtara-Papatoetoe Local Board’s formal approval in accordance with their delegation;

- Engage with iwi through the Mana Whenua Forum;

- Request the Chief Executive to sign the DA;

- Continue to engage with all other key stakeholders;

- Seek a change to the delegations from Ōtara-Papatoetoe Local Board to Governing Body to more appropriately reflect the regional nature of motorsport activities. It is anticipated that a report on this topic would go the Environment and Community Committee in the new year;

- As part of the above change, consider whether changing from the Reserve Act status to LGA for Colin Dale Park would be more appropriate due to the mixed recreational and commercial activities on the site; and

- Undertake preparation work for resource consent application for landlord works.

Ngā tāpirihanga / Attachments

No.	Title	Page
a ⇩	Uncompleted Landlord Works at Colin Dale Park	65
b ⇩	Site Plan	67

Ngā kaihaina / Signatories

Author	Marguerite Pearson - Principal Advisor – Planning and Investment
Authorisers	John Duncan - Executive Direction, Auckland Investment Office Matthew Walker - Group Chief Financial Officer

No.	Title	Page
a ⇩	Finance and Performance Committee Forward Work Programme to 30 June 2019	75
b ⇨	23 October 2018 – Workshop – Council Controlled Organisations letters of expectation, statements of intent and quarterly reporting (Under Separate Cover)
c ⇨	23 October 2018 - Workshop – Rating of Religious Premises (Under Separate Cover)
d ⇨	6 November 2018 – Memorandum – Council submission on Tax Working Group – Interim Report (Under Separate Cover)

Finance and Performance Committee

20 November 2018

Komiti ā Pūtea, ā Mahi Hoki
Finance and Performance Committee
FORWARD WORK PROGRAMME TO 30 JUNE 2019

The purpose of the Committee is to control and review expenditure across the Group to improve value for money; to monitor the overall financial management and performance of Auckland Council parent and Auckland Council Group; to make financial decisions required outside the annual budgeting processes and to perform the responsibilities of another committee, where it is necessary.

Detailed decisions are reported at the end of this document (Page 6 onwards)

Priorities for 2018/19 will be on initiatives which:

1. Planning and Funding

2. Reporting and Performance

3. Value for money

4. Operational

The work of the committee will:

1. approve the Annual Plan 2019/2020 including financial policy, the consultation document and supporting information for recommendation to the Governing Body

2. monitor achievement of financial and other measures of performance and services levels and recommend the Annual Report to the Governing Body

3. approve acquisition and disposal of property related to the Committee’s responsibilities.

4. review and approve financial policy and non-budgeted expenditure.

Lead	Area of work	Reason for work	Finance and Performance Committee role - decision or direction	Expected timeframes
				2018 2019
				Q1 Jul-Sep 24 Jul 21 Aug 18 Sept	Q2 Oct-Dec 17 Oct 23 Oct 14 Nov 20 Nov 11 Dec		Q3 Jan-Mar 19 Feb 19 Mar 20 Mar	Q4 Apr-Jun 16 Apr 21 May 18 Jun 19 June
Planning and Funding
GM Financial Strategy & Planning	Annual Budget	Statutory process	Decision to agree to the Consultation items Adopt Consultation Document to consult with Public Consultation runs Hear feedback and deliberate budget scenarios Decisions made for Annual Budget Adopt final Annual Budget			Nov Dec	Feb 19 Mar	Apr May June
GM Financial Strategy & Planning	Budget Update (as required). This includes significant unbudgeted one-off expenditure.	Financial management	Decision to agree recommended budget changes outside of AP/LTP budgeting cycle			23 Oct 14 Nov Dec	Feb 19 Mar	Apr May Jun
GM Financial Strategy & Planning	Development contributions policy	Statutory requirement to have a DC policy · Align capex figures from LTP	Note that the Governing Body has Agreed to consult on the proposed DC policy (18 October 2018). The GB will Consult on draft Development Contribution policy (19 October 2018 – 15 November 2018). The GB will Adopt the Development Contribution policy (13 December 2018)	Sep
GM Financial Strategy & Planning	Rating Policy and process	Rating	Workshop on approach to rating religious properties (Potentially move into Annual Plan process)	Sep		23 Oct 20 Nov
GM Financial Strategy & Planning	Carry forwards for 2017/2018	Financial Management	Approving budget carry forwards for 2017/2018			17 Oct
GM Financial Strategy & Planning	Infrastructure funding and financing work with Treasury	Financial Management	Discuss ongoing work with central government on Crown Infrastructure Partners and Special Purpose Vehicles for major infrastructure projects – timing for committee as required
GM Financial Strategy & Planning and Treasurer and GM Financial Transactions	Treasury and debt management		Briefing on council debt			21 Nov	Feb
Auckland Investment Office	Dividend reinvestment plan	Auckland International Airport Limited Dividend Reinvestment Plan	Decision to agree required to approve Dividend Reinvestment Plan				Feb
GM Corporate Finance and Property	Weathertightness issues and provision	To provide an update on changes implemented to reduce the future risk of weathertightness claims as well as a summary of how the liability is calculated for accounting purposes	Review information			Dec
Executive Director, Auckland Investment Office	Colin Dale Park	Report on progress of the investigation and negotiations for Speedway (run by Springs Promotions Ltd) to move from Western Springs to Colin Dale Park.	Endorse the Heads of Agreement and Approve to development costs.			20 Nov
Te Waka Anga Mua ki Uta	Māori Transformational Activity and Expenditure Report Te Tiriti O Waitangi Audit Response Work Programme	To monitor progress on expenditure and delivery of Maori transformational activity (includes Te Toa Takitini) and on projects to deliver Māori outcomes. This reporting will be carried out bi-annually To monitor progress in responding to 3 yearly Te Tiriti O Waitangi audit	Receive generally no decisions			17 Oct		21 May

Lead	Area of work	Reason for work	Finance and Performance Committee role - decision or direction	Expected timeframes
				2018 2019
				Q1 Jul-Sep 24 Jul 21 Aug 18 Sept	Q2 Oct-Dec 17 Oct 23 Oct 14 Nov 20 Nov 11 Dec			Q3 Jan-Mar 19 Feb 19 Mar 20 Mar	Q4 Apr-Jun 16 Apr 21 May 18 Jun 19 Jun
Reporting and Performance
GM Corporate Finance and Property	Annual Report	· Statutory requirement · NZX Announcement and release · Draft annual report and Summary on Performance - Sept · Interim audit report – Feb	Receive Annual report Recommend to Governing Body for adoption Note: · NZX announcements are presented to the Audit and Risk Committee · There is a delegation from the Committee to Chair and Deputy Chair of Finance and Performance to recommend to the Mayor and CE to release the preliminary results to the NZ Stock Exchange so that Council can meet NZX reporting deadlines. · Formal adoption of annual report is by the Governing Body	Aug Sept
GM Corporate Finance and Property	Half-yearly report	· NZX listing requirement	Receive Half-yearly report Approve for release Note: · NZX announcements are presented to the Audit and Risk Committee · There is a delegation from the Committee to Chair and Deputy Chair of Finance and Performance to recommend to the Mayor and CE to release the preliminary results to the NZ Stock Exchange so that Council can meet NZX reporting deadlines.					Feb
CCO/External Partnerships	Statements of Intent	· Shareholder feedback on draft SOIs –Aug · Letters of Expectation for 2019/2020 SOIs – Nov · Shareholder comments on draft 2019/2020 SOIs - Apr	Agree 2019/2010 Letters of Expectation	Aug			23 Oct 11 Dec		Apr
Manager Corporate & Local Board Performance	Performance Reporting quarterly - parent	To monitor council parent financial and non-financial performance results	Receive generally no decisions				17 Oct 14 Nov	20 Mar	19 Jun
GM Financial Strategy & Planning	Performance Reporting quarterly – CCOs	To monitor CCO financial and non-financial performance results	Receive validate/challenge				17 Oct 14 Nov	20 Mar	19 Jun
GM Financial Strategy & Planning	Performance Reporting quarterly - group	To monitor Auckland Council group financial performance	Receive generally no decisions				17 Oct 14 Nov	20 Mar	19 Jun
Value for Money
GM Financial Strategy & Planning	Consideration and adoption of Group policy relating to Business Cases		Decision on whether to adopt a new policy			11 Dec
Operational
Panuku Development Auckland	Recommended disposals or acquisitions. These reports are as required, but generally monthly.	· Panuku is required through its SOI to identify and recommend to council properties that are surplus to requirements and can be considered for disposal. These include general disposals to fund LTP projects. · Panuku recommends properties for acquisition and disposal to the committee for approval where they are located within a priority development location.	Decision to proceed with recommended disposals or acquisitions.	July Sept		23 Oct 20 Nov Dec		Feb 19 Mar	Apr May 18 Jun
GM Corporate Finance and Property	Property portfolio	To provide an update on progress of the Corporate Property Portfolio roll out and where required seek approval for any property transactions	Regular reporting			20 Nov		19 Mar	18 Jun
Engineering & Technical Services / Treasury & Financial Transactions / Procurement	Consideration and adoption of Group policies for Performance Bonds	Mayoral Office request	Decide whether to amend current policy					Feb
CCO/External Partnerships	Auckland Regional Amenities Levy, MOTAT and Auckland War Memorial Museum Levies	Statutory process · RFA respond to draft levy for MOTAT and AWMM (on behalf of council) · December F&P - approve council submission to draft ARAFB Funding Plan · March F&P – approve annual funding levies for ARAFB, MOTAT, AWMM · March F&P (G Body) – approve ARAFB draft · May F&P – approve annual IMSB funding. · May and June 2019 - nine amenities present to F&P committee	Decision to approve submission on draft Funding Plan Decision to approve levies			11 Dec		20 Mar	May 19 June
Parks, Sports and Recreation	Loan restructuring (committee dates as required)	Responding to proposals and recommendations	Decision to approve proposed restructuring

Detailed decisions - Komiti ā Pūtea, ā Mahi Hoki
Finance and Performance Committee
FORWARD WORK PROGRAMME TO 30 JUNE 2019

Lead	Area of work	Finance and Performance Committee role - decision or direction	Detailed decisions
Planning and Funding
GM Financial Strategy & Planning	Annual Budget	Decision to agree to the Consultation items Adopt Consultation Document to consult with Public Consultation runs Hear feedback and deliberate budget scenarios Decisions made for Annual Budget Adopt final Annual Budget	For information on the previous long-term/annual plan processes, please refer to the table at the end of this document.
GM Financial Strategy & Planning	Budget Update (as required). This includes significant unbudgeted one-off expenditure.	Decision to agree recommended budget changes outside of AP/LTP budgeting cycle	For information on previous decisions, please refer to the table at the end of this document.
GM Financial Strategy & Planning	Development contributions policy	Agree to consult on the proposed DC policy Consultation on draft Development Contribution policy (GB) Adoption of Development Contribution policy (GB)	Reporting dates: 31/5/18 – Contributions Policy FIN/2018/90 Adopted by the Governing Body: 31/5/18 GB/2018/91 10/9/18 – Workshop on Development Contributions
GM Financial Strategy & Planning	Rating Policy and process	Workshop on approach to rating religious properties (Potentially move into Annual Plan process)	23/10/18 – Workshop on the rating of religious use premises
GM Financial Strategy & Planning	Carry forwards for 2017/2018	Approving budget carry forwards for 2017/2018	17/10/18 – 2017/2018 Budget Carry Forwards
GM Financial Strategy & Planning	Infrastructure funding and financing work with Treasury	Discuss ongoing work with central government on Crown Infrastructure Partners and Special Purpose Vehicles for major infrastructure projects – timing for committee as required	11/4/17 - Responsible investment policy and Diversified Financial Asset Portfolio review Resolutions - FIN/2017/44, FIN/2017/45 and FIN/2017/46 20/06/17 - Review of the Diversified Financial Assets Portfolio FIN/2017/88 19/9/17 – Approval of Group Policies FIN/2017/121 11/12/17 – Approval of Treasury Management Policy FIN/2017/161 27/2/17 – Council’s debt funding strategy FIN/2018/10
GM Financial Strategy & Planning and Treasurer and GM Financial Transactions	Treasury and debt management	Briefing on council debt
Auckland Investment Office	Dividend reinvestment plan	Decision to agree required to approve Dividend Reinvestment Plan
GM Corporate Finance and Property	Weathertightness issues and provision	Review information
Executive Director, Auckland Investment Office	Colin Dale Park	Endorse the Heads of Agreement and Approve to development costs.
Te Waka Anga Mua ki Uta	Māori Transformational Activity and Expenditure Report Te Tiriti O Waitangi Audit Response Work Programme	Receive generally no decisions	23/5/17 - 23/5/17 – Third Quarter of 2016/17 FIN/2017/63 13/12/17 - Te Toa Takitini - Quarter One Māori Responsiveness portfolio report FIN/2016/159 15/08/17 – 2016/2017 Year-End Report FIN/2017/112 12/12/17 – Quarter One Report for 2017/2018 financial year FIN/2017/202 20/03/18 – Quarter Two Report for 2017/2018 financial year FIN/20178/14 12/12/17 Report FIN/2017/291 12/3/18 Response Report FIN/2018/45 24/7/18 Te Tiriti o Waitangi Report 2018 FIN/2018/115 17/10/18 Update on the independent assessment of expenditure incurred by Auckland Council to deliver Māori outcomes 17/10/18 Auckland Council group – programmes and projects that have delivered Māori outcomes in 2017/2018 17/10/18 2018 Treaty Audit Response Programme
Reporting and Performance
GM Corporate Finance and Property	Annual Report	Receive Annual report Recommend to Governing Body for adoption Note: · NZX announcements are presented to the Audit and Risk Committee · There is a delegation from the Committee to Chair and Deputy Chair of Finance and Performance to recommend to the Mayor and CE to release the preliminary results to the NZ Stock Exchange so that Council can meet NZX reporting deadlines. · Formal adoption of annual report is by the Governing Body	13/12/2016 - Delegation for approval of releasing interim and full year group results to New Zealand Stock Exchange FIN/2016/168 18/9/18 – Approval of and recommendation for adoption of the 2017/2018 Annual Report for Auckland Council and Group (confidential)
GM Corporate Finance and Property	Half-yearly report	Receive Half-yearly report Approve for release Note: · NZX announcements are presented to the Audit and Risk Committee · There is a delegation from the Committee to Chair and Deputy Chair of Finance and Performance to recommend to the Mayor and CE to release the preliminary results to the NZ Stock Exchange so that Council can meet NZX reporting deadlines.
CCO/External Partnerships	Statements of Intent	Agree 2019/2010 Letters of Expectation	15/8/17 – Approval of 2017/2020 Statements of Intent FIN/2017/111 19/9/17 – Approval of Watercare Services Limited Statement of Intent 2017-20 FIN/2017/122 12/12/17 - Letters of Expectation for Council-controlled Organisations, 2017-2018 FIN/2016/170 20/3/18 – Letters of Expectation for 2018-2021 17/4/18 – proposed shareholder comments on Draft Council-controlled organisation statements of intent FIN/2018/64 21/8/18 – Council-controlled Organisations – Approval of 2018-2021 Statements of Intent FIN/2018/118 21/8/18 – Ports of Auckland Limited – proposed shareholder feedback on the draft Statement of Corporate Intent FIN/2018/119 23/10/18 – Shareholder approval of Ports of Auckland Limited’s final statement of Corporate Intent 2018-2021 FIN/2018/156 23/10/18 – Workshop on Council Controlled Organisations letters of expectation, statements of intent and quarterly reporting.
Manager Corporate & Local Board Performance	Performance Reporting quarterly - parent	Receive generally no decisions	13/12/16 - Auckland Council organisation report for the period 1 July 2016 to 30 September 2016 FIN/2016/160 21/2/17 - Auckland Council organisation performance report for the period 1 July 2016 to 31 December 2016 FIN/2017/9 26/5/17 - Auckland Council organisation performance report for the period 1 July 2016 to 31 March 2017 FIN/2017/68 21/09/17 - Organisation Performance 1 July 2016 – 30 June 2017 FIN/2017/133 24/11/17 - 1 July 2017 – 30 September 2017 FIN/2017/177 12/03/18 - 1 July 2017 – 31 December 2017 FIN/2018/34 6/6/18 – Auckland Council parent performance report for the period 1 January 2018 to 31 March 2018 FIN/2018/98 17/10/18 – Auckland Council parent performance report for the period 1 July 2017 to 30 June 2018
GM Financial Strategy & Planning	Performance Reporting quarterly – CCOs	Receive validate/challenge	13/12/16 - Council-controlled organisations first quarter report for 30 September 2016 FIN/2016/158 11/4/17 – CCOs second quarter report for 31 December 2017 26/5/17 – Council-controlled organisations third quarter report for 31 March 2017 FIN/2017/69 21/09/17 - Fourth quarter report for 30 June 2017 (public excluded) FIN/2017/130 24/11/17 - First quarter report for 30 September 2017 FIN/2017/178 12/03/18 – Second quarter report ending 31 December 2017 FIN/2018/18 31/5/18 – Approval of council-controlled organisations accountability policy FIN/2018/91 6/6/18 – Council-controlled organisation third quarter report ending 31 March 2018 FIN/2018/96 and FIN/2018/97 17/10/18 – Council-controlled organisation fourth quarter report ending 30 June 2018 23/10/18 – Workshop on Council Controlled Organisations letters of expectation, statements of intent and quarterly reporting.
GM Financial Strategy & Planning	Performance Reporting quarterly - group	Receive generally no decisions	13/12/16 - Auckland Council Group first quarter financial results to 30 September 2016 FIN/2016/161 21/3/17 - Auckland Council Group quarterly financial report and financial results to 31 December 2016 FIN/2017/28 26/5/17 - Auckland Council Group quarterly financial report and financial results to 31 March 2017 FIN/2017/70 21/09/17 – Report for adoption of the 2016/2017 Annual Report FIN/2017/132 24/11/17 - Quarterly financial report and financial results to 30 September 2017 FIN/2017/176 12/03/2018 - Six monthly financial results to 31 December 2017 FIN/2018/32 6/6/18 – Auckland Council Group quarterly financial report and financial reports to 31 March 2018 FIN/2018/95 17/10/18 – Auckland Council and group financial performance for the year ended 30 June 2018
Value for Money
GM Financial Strategy & Planning	Consideration and adoption of Group policy relating to Business Cases	Decision on whether to adopt a new policy	19/9/17 – Approval of Group Policies FIN/2017/121
Operational
Panuku Development Auckland	Recommended disposals or acquisitions. These reports are as required, but generally monthly.	Decision to proceed with recommended disposals or acquisitions.	Note: A full list of properties to be disposed or acquired is included at the end of this document.
GM Corporate Finance and Property	Property portfolio	Regular reporting	29/3/18 – Workshop on corporate property strategy 17/4/18 – Corporate Accommodation Disposal Recommendation, Corporate Property Portfolio Strategy FIN/2018/58 15/5/18 – Corporate Accommodation Disposal Recommendation, Corporate Property Portfolio Strategy FIN/2018/73
Engineering & Technical Services / Treasury & Financial Transactions / Procurement	Consideration and adoption of Group policies for Performance Bonds	Decide whether to amend current policy	12/3/18 – Green Bond Framework Establishment and Potential Green Bond Issuance FIN/2018/31
CCO/External Partnerships	Auckland Regional Amenities Levy MOTAT and Auckland War Memorial Museum Levy	Decision to approve submission on draft Funding Plan Decision to approve levies	21/2/17 – Presentations from amenities - New Zealand Opera, Auckland Theatre Company, Coastguard Northern Region, Watersafe Auckland and Surf Life Saving Northern Region FIN/2017/4 21/2/17 - Auckland Regional Amenities draft funding plan 2017-2018, proposed Auckland Council submission FIN/2017/5 21/3/17 – Presentations from amenities – Stardome Observatory and Planetarium; New Zealand Maritime Museum; Auckland Philharmonia Orchestra; Auckland Rescue Helicopter Trust; and Auckland Arts Festival FIN/2017/18 21/3/17 - Approval of Auckland Regional Amenities Funding Act levy 2017/2018 FIN/2071/19 27/2/18 - Presentations from amenities – Auckland Festival Trust; Surf Life Saving Northern Region; Auckland Theatre Company; and Stardome Observatory and Coastguard Northern Region FIN/2018/5 27/2/18 - Auckland Regional Amenities Draft Funding Plan 2018/2019 - proposed Auckland Council submission FIN/2018/6 20/3/18 - Integration of NZ Maritime Museum to Regional Facilities Auckland FIN/2018/37 20/3/18 - Presentations from amenities – NZ Opera: Auckland Philharmonia Orchestra; Auckland Rescue Helicopter; and Drowning Prevention Auckland/Watersafe Auckland Inc FIN/2018/38 17/4/18 – approval of Auckland Regional Amenities Funding Act levy FIN/2018/63 21/3/17 – AWMM – approval of 2017/2018 levy FIN/2017/20 21/3/17 – MOTAT – approval of 2017/2018 levy FIN/2017/21 23/5/17 – AWMM letter – approval of 2017/2018 levy 17/4/17 – MOTAT – approval of 2018/2019 levy FIN/2018/61 17/4/17 - AWMM – approval of 2018/2019 FIN/2018/62
Parks, Sports and Recreation	Loan restructuring (committee dates as required)	Decision to approve proposed restructuring

Previous annual/long-term plan processes

Meeting Date	Subject
13/12/16	Annual Budget 2017/18 – Mayoral Proposal on items for Public Consultation FIN/2016/173
1/6/17	Annual Budget 2017/2018 - Overview to decision-making FIN/2017/73 Annual Budget 2017/2018 - Local Board budget update FIN/2017/74 Annual Budget 2017/2018 – Local Board Feedback FIN/2017/75 Final Annual Budget 2017/2018 – Mayoral Proposal resolutions - FIN/2017/76, FIN/2017/81, FIN/2017/83, and FIN/2017/85
Nov 2017 – May 2017	*10-year Budget* 31/5/18 – 10-year Budget – 2018-2018 Mayor’s final proposal FIN/208/77-84 31/5/18 – Proposal for One Local Initiatives FIN/2018/85 Rodney Local Board Targeted Rate: Rodney Local Board Decision FIN/2018/87 31/5/18 – Fees, charges and other rating matters FIN/2018/89 31/5/18 – Adoption of the Rates Remission and Postponement Policy FIN/2018/92 31/5/18 – Contributions Policy FIN/2018/90 Adopted by the Governing Body: 31/5/18 GB/2018/91 Regional Fuel Tax GB/2018/90

Panuku disposals/service property optimisation/land exchanges and acquisitions resolutions:

Meeting Date		Property Address	Resolution
13/12/16		Report Units 1-28/150 Mt Wellington Highway, Mt Wellington; and 1/16 Sarona Avenue, Glen Eden	FIN/2016/157
21/2/17		Report 523a Ellerslie-Panmure Highway, Mt Wellington; and 525-529 Ellerslie-Panmure Highway, Mt Wellington	FIN/2017/3
21/2/17		Report Land up to 9ha to NZTA for the Northern Corridor Improvements Project	FIN/2017/7
21/2/17		Report Statutory land exchange process – Rosedale Park	FIN/2017/8
21/3/17		Report Part of 770R Great South Road, Manukau	FIN/2017/25
11/4/17		Report 19 Anzac Road, Browns Bay (deferred); 6 Butler Avenue, Papatoetoe; part of 129R Bairds Road, Otara; 315A Glengarry Road, Glen Eden; Section 1 East Coast Road, Redvale; 78a Great South Road, Papakura; Section 1 493 State Highway 16, Kumeu; Allotment 137 Ahuroa Parish, Woodcocks Road, Woodcocks; Allotment 138 Ahuroa Parish, Woodcocks Road, Woodcocks; Allotment 139 Ahuroa Parish, Woodcocks Road, Woodcocks; Allotment 140 Ahuroa Parish, Woodcocks Road, Woodcocks; Allotment 141 Ahuroa Parish, Woodcocks Road, Woodcocks; and Allotment 147 Ahuroa Parish, Woodcocks Road, Woodcocks	Resolutions - FIN/2017/49, FIN/2017/50
23/5/17		Report 3 Memorial Drive, New Lynn	FIN/2017/57
26/7/17		Report 55a Alnwick Street, Warkworth; 45 Oraha Road, Huapai; 32 Harbourview Road, Te Atatu’ 145a West Tamaki Road, Glen Innes; 343 Swanson Road, Ranui; 24 Waipuna Road, Mt Wellington; 26 Waipuna Road, Mt Wellington; 27b Waipuna Road, Mt Wellington; 1/77 Waipuna Road, Mt Wellington; 93 Waipuna Road, Mt Wellington; 134a Waipuna Road, Mt Wellington; and 3/136b Waipuna Road, Mt Wellington	FIN/2017/97
17/4/18		Report – Unlock Panmure - 59 Mountain Road, Mount Wellington; 59a Mountain Road, Mount Wellington; 3 Mountwell Crescent, Mount Wellington; 7 Mountwell Crescent, Mount Wellington; 3 Kings Road, Panmure; 15 Forge Way, Mount Wellington; 7 and 9 Jellicoe Road, Mount Wellington; 30-34 Potaka Lane, Panmure; 486-492 Ellerslie-Panmure Highway, Mt Wellington; 516 Ellerslie-Panmure Highway, Mount Wellington; Former 528 Ellerslie-Panmure Highway, Mount Wellington; 530 Ellerslie-Panmure Highway, Mount Wellington; 532-534 Ellerslie-Panmure Highway, Mount Wellington; 535 Ellerslie-Panmure Highway, Mount Wellington; 536 Ellerslie-Panmure Highway, Mount Wellington; 7-11 Queens Road, Panmure; 39-41 Queens Road, Panmure; 11-13 Lagoon Drive, Panmure; 16 Lagoon Drive, Panmure; 20 Lagoon Drive, Panmure; 22 Lagoon Drive, Panmure; 26 Lagoon Drive, Panmure; 28 Lagoon Drive, Panmure; 30 Lagoon Drive, Panmure; 32-34 Lagoon Drive, Panmure; 1-19/10 Basin View Lane, Panmure; 23 Domain Road, Panmure; and 28-30 Pilkington Road, Mount Wellington.	FIN/2018/59
15/8/17		Report 187 Flat Bush School Road, Flat Bush;	FIN/2017/108
		Report Unlock Old Papatoetoe - 17 St George Street, Papatoetoe; part 27 St George Street, Papatoetoe; 104 St George Street, Papatoetoe; and 109 St George Street, Papatoetoe	FIN/2017/109
		Report 31-35 Mill Road, Helensville	FIN/2017/110
24/10/17		Report 19 Anzac Avenue, Browns Bay; 10 Felton Matthew Avenue, St Johns; and part Bombay Road, Bombay	Resolutions FIN/2017/144, FIN/2017/145
21/11/17		Report Unlock Avondale Unlock Avondale – 93-99 Rosebank Road, Avondale	FIN/2017/168
12/12/17		Report 80 Vincent Street, Howick (motion lost); 41 Cheshire Street, Parnell; 108 Hepburn Street, Freemans Bay; 9 Matama Street, Glen Eden; and 58/7 Rowlands Road, Mt Wellington	FIN/2017/204
12/12/17		Report Land exchange at Hillary Crescent, Belmont and Northboro Reserve – Recommendation from the Environment and Community Committee	FIN/2017/207
27/2/18		Report 61-117 Clark Road, Hobsonville; and Report 37 New Windsor Road, Avondale (SPO)	FIN/2018/8 FIN/2018/11
20/3/18		Report 3.8ha of reserve land in Upper Harbour Local Board for New Zealand Transport Agency Northern Corridor Improvements	FIN/2018/18
17/4/18		Report – 156 Blockhouse Bay, Avondale; 2a Stokes Road, Mt Eden; 570 Great South Road, Papatoetoe; 139 Kolmar Road, Papatoetoe; and 66R Hallberry Road, Mangere East	FIN/2018/60
	24/7/18	Report – 132 Green Lane East, Greenlane; 28 Lockwood Road, Papakura; Adjacent to 1/18 Edwin Freeman Place Ranui; and Adjacent 18 Parrs Cross Road, Henderson.	FIN/2018/113
	18/9/18	Report – 30R Birmingham Road, Otara; and 8 Hiwi Crescent, Stanmore Bay	FIN/2018/136

Budget Update:

Date	Property address(es)	Resolution
13/12/16	Report Additional OPEX budget of up to $104,000 to conduct a by-election for a Howick Local Board Member; and release of $2.7m from existing budget for Putney Way streetscape upgrade, ahead of the Transform Manukau business case	FIN/2016/164
21/3/17	Report Additional CAPEX budget of $960,000 to complete Freyberg Place upgrade; new OPEX budget of $80,000 for Karangahape Road destination marketing; contribution of $300 to the city feature lighting project (led by Heart of the City) – both funded from the City Centre Targeted Rate reserve.	FIN/2017/29
20/6/17	Report Conversion of $3.1m CAPEX budget for multi-purpose community facility in Takanini	FIN/2017/90
26/7/17	Report Purchase of additional trains (rescinded 24/10/17 FIN/2017/189)	FIN/2017/98
19/9/2017	Report Release and allocate Takapuna off-street car park reserve fund $4,269611 to the Gasometer public car park project; release $6.1m form existing Transform Manukau $2.6 CAPEX and $2m OPEX and Transform Onehunga $1.5 OPEX.	FIN/2017/123
24/10/17	Report Approve procurement of 15 3-car electric multiple units of $133m; release of Franklin Parking Reserve Fund ($128,214) for upgrade of carpark at Kitchener Road, Waiuku; OPEX of $828,000 for two by-elections; OPEX budget of $115,400 for by-election for Waitemata Local Board.	FIN/2017/141
12/12/17	Report Update on the purchase of additional trains for Metro Rail	FIN/2017/205
27/2/18	Report Up to $3.2m CAPEX for fit-out for ATEED office and up to $0.8m OPEX for make good of current head office; $3.85m CAPEX for Rawene remedial works; updated city centre targeted rate-funded work programme; and property acquisitions at 155-167 Fanshawe Street and 100 Halsey Street, Auckland	Resolutions - FIN/2018/17, FIN/2018/18
17/4/18	Report Up to $740,000 of additional expenditure ($655,000 OPEX and $85,000 CAPEX) to manage kauri dieback; two additional FTE employees and out-sourced contractors to manage the closures and noting additional expenditure to be prioritised for kauri dieback work such as track improvements, upgrades, landowner support, hygiene station upgrades and washdown facilities.	FIN/2018/65

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

Introduction

Analysis of land use

Overall impact

Transition management

Conclusion

Implementation

Part I: Common messages

Housing opportunity

Options to retain property

Mayoral Drive car park

Panuku to transact the disposals

Author	Sandra Gordon - Senior Governance Advisor
Authoriser	Matthew Walker - Group Chief Financial Officer