Komiti ā Pūtea, ā Mahi Hoki /

Finance and Performance Committee

 

OPEN MINUTES

 

 

 

Minutes of a meeting of the Finance and Performance Committee held in the Reception Lounge, Auckland Town Hall, 301-305 Queen Street, Auckland on Tuesday, 19 March 2019 at 9.34am.

 

present

 

Chairperson

Cr Ross Clow

 

Deputy Chairperson

Cr Desley Simpson, JP

 

Members

Cr Josephine Bartley

 

 

Cr Dr Cathy Casey

 

 

Cr Fa’anana Efeso Collins

 

 

Cr Linda Cooper, JP

 

 

Cr Chris Darby

 

 

Cr Alf Filipaina

 

 

Cr Hon Christine Fletcher, QSO

From 10.06am, Item 8

 

Mayor Hon Phil Goff, CNZM, JP

 

 

Cr Richard Hills

 

 

IMSB Member Tau Henare

 

 

Cr Penny Hulse

From 9.51am, Item 8

 

Cr Mike Lee

From 10.03am, Item 8

 

Cr Daniel Newman, JP

From 9.59am, Item 8

 

Cr Greg Sayers

 

 

Cr Sharon Stewart, QSM

 

 

IMSB Chair David Taipari

From 9.38am, Item 8

 

Cr Sir John Walker, KNZM, CBE

From 9.41am, Item 8,

Until 5.04pm, Item 13

 

Cr Wayne Walker

 

 

Cr John Watson

 

 

Cr Paul Young

 

 

 

ABSENT

 

Members

Deputy Mayor Bill Cashmore

 

 

IMSB Member Terrence Hohneck

 

 

 

 


Finance and Performance Committee

19 March 2019

 

 

 

 

Acknowledgement

 

The meeting opened with a moment’s silence to acknowledge the recent tragic events in Christchurch.

 

 

1          Apologies

 

Resolution number FIN/2019/14

MOVED by Chairperson R Clow, seconded by Cr E Collins:  

That the Finance and Performance Committee:

a)         accept the apology from Deputy Mayor BC Cashmore for absence on council business, IMSB Member Terrence Hohneck for absence, Cr P Hulse for late arrival, Cr D Simpson for early departure, on council business, and Cr L Cooper for early departure.

CARRIED

Note:   Cr D Simpson did not depart early.

 

 

2          Declaration of Interest

 

A declaration of interest was received from Cr Darby for item 13 – Eden Park Trust loan guarantee for receipt of various tickets to events from The Eden Park Trust.

 

 

3          Confirmation of Minutes

 

Resolution number FIN/2019/15

MOVED by Chairperson R Clow, seconded by Cr W Walker:  

That the Finance and Performance Committee:

a)         confirm the ordinary minutes of its meeting, held on Tuesday, 19 February 2019, including the confidential section, as a true and correct record.

CARRIED

 

 

4          Petitions

 

There were no petitions.

 

 

5          Public Input

 

5.1

Public Input - Eden Park Trust

 

Note:   This item was considered later in the meeting.

 

 

 


 

 

6          Local Board Input

 

6.1

Local Board Input - Albert-Eden Local Board relating to Eden Park

 

Note:   This item was considered later in the meeting.

 

 

 

 

7          Extraordinary Business

 

There was no extraordinary business.

 

 

8

Recommendations from Appointments, Performance Review and Value for  Money Committee - Auckland Council progress on savings up to 31 December 2018

 

IMSB Chair D Taipari joined the meeting at 9.38am.
Cr Sir J Walker joined the meeting at 9.41am.
Cr P Hulse joined the meeting at 9.51am.
Cr D Newman joined the meeting at 9.59am.
Cr M Lee joined the meeting at 10.03am.
IMSB Chair D Taipari left the meeting at 10.05am.
Cr C Fletcher joined the meeting at 10.06am.
Cr E Collins left the meeting at 10.29am.
IMSB Chair D Taipari returned to the meeting at 10.30am.

 

A PowerPoint presentation was given.  A copy has been placed on the official minutes and is available on the Auckland Council website as a minutes attachment.

 

Resolution number FIN/2019/16

MOVED by Deputy Chairperson D Simpson, seconded by Mayor P Goff:  

That the Finance and Performance Committee:

a)      receive the Auckland Council progress report on savings up to 31 December 2018 (included in Attachment A of the agenda report).

CARRIED

 

Attachments

a     19 March 2019 - Finance and Performance Committee, Item 8 - Recommendations from Appointments, Performance Review and Value for  Money Committee - Auckland Council progress on savings up to 31 December 2018 - PowerPoint presentation

 

 

9

Auckland Council Green Bond Activities and Green Bond Pledge

 

Cr C Fletcher left the meeting at 10.44am

 

Resolution number FIN/2019/17

MOVED by Chairperson R Clow, seconded by Deputy Chairperson D Simpson:  

That the Finance and Performance Committee:

a)      note the update on council’s green bond activities.

b)      endorse Auckland Council’s commitment to the Green Bond Pledge.

CARRIED

 


 

 

Cr Fletcher returned to the meeting at 10.49am

 

 

10

Approval of Auckland Regional Amenities Funding Act levy 2019-2020

 

Cr E Collins returned to the meeting at 10.51am.
IMSB Member T Henare left the meeting at 10.57am.
Cr W Walker left the meeting at 11.02am.

 

A letter from Vern Walsh, Chairperson – Auckland Regional Amenities Funding Board dated 28 February 2019 regarding the Auckland Council submission was given.  A copy has been placed on the official minutes and is available on the Auckland Council website as a minutes attachment.

 

Resolution number FIN/2019/18

MOVED by Chairperson R Clow, seconded by Cr C Fletcher:  

That the Finance and Performance Committee:

a)      approve the total levy applied for by Auckland Regional Amenities Funding Board of $15,504,500 for 2019/2020.

CARRIED

 

Attachments

a     19 March 2019 - Finance and Performance Committee, Item10 - Approval of Auckland Regional Amenities Funding Act levy 2019-2020 - letter regarding Auckland Council submission   

 

 

 

11

Approval of the Museum of Transport and Technology levy 2019/2020

 

Cr W Walker returned to the meeting at 11.13am.
IMSB Member T Henare returned to the meeting at 11.15am.

Present for the item were Dr Lesley McTurk Chair MOTAT Board; Michael Frawley Chief Executive and Wayne Schache, General Manager Business Services.  Also present were Mike Spraggon, Deputy Chair of the MOTAT Board and Steven Fox General Manager, Museum Experience.

 

Resolution number FIN/2019/19

MOVED by Deputy Chairperson D Simpson, seconded by Chairperson R Clow:  

That the Finance and Performance Committee:

a)      approve the total levy applied for by the Museum of Transport and Technology of $15,811,739 for 2019/2020.

CARRIED

 

 

 

12

Approval of Auckland War Memorial Museum levy, 2019-2020

 

Present for the item were Jo Brosnahan, Chair - AWMM Planning Committee; David Gaimster (Chief Executive); Megan McSweeney (Director, Marketing, Communications & External Affairs); Jignasha Patel (Director, Enterprise and Finance); and Victoria Passau (Governance and Compliance Advisor)

 

Resolution number FIN/2019/20

MOVED by Cr W Walker, seconded by Deputy Chairperson D Simpson:  

That the Finance and Performance Committee:

a)      approve the total levy applied for by the Auckland War Memorial Museum of $32.292 million for 2019/2020, noting that this is an increase of 2.5 per cent from 2018/2019. 

CARRIED

 

Attachments

a     19 March 2019 - Finance and Performance Committee, Item 12 - Approval of Auckland War Memorial Museum levy, 2019-2020 - highlights

 

 

The meeting adjourned at 11.48am and reconvened at 12.03pm.

IMSB Member T Henare, Cr G Sayers and IMSB Chair D Taipari were not present.

 

Megan Tyler, Chief of Strategy, provided advice on Item 13 – Eden Park trust loan guarantee stating that no discussions should take place in regard to regulatory matters at Eden Park.

 

 

5

Public Input

 

5.1

Public Input - Eden Park Trust

 

Mr Doug McKay, Chairperson of the Eden Park Trust Board ; Nick Sautner, Chief Executive Officer – Eden Park Trust Board; Brett Winstanley, Chief Financial Officer – Eden Park Trust Board and Vicki Salmon, Member – Eden Park Trust Board gave a PowerPoint presentation.  Also present from the Eden Park Trust Board were Nicholas Allbrecht, Nicky Duggan and Victoria Toon.

A copy has been placed on the official minutes and is available on the Auckland Council website as a minutes attachment.

 

IMSB Chair D Taipari returned to the meeting at 12.04pm.
IMSB Member T Henare returned to the meeting at 12.04pm.
Cr G Sayers returned to the meeting at 12.05pm.

 

Resolution number FIN/2019/21

MOVED by Cr W Walker, seconded by Chairperson R Clow:  

That the Finance and Performance Committee:

a)      receive and thank Mr Doug McKay, Chairperson – Eden Park Trust Board, Nick Sautner, Chief Executive Officer – Eden Park Trust Board, Brett Winstanley, Chief Financial Officer – Eden Park Trust Board, and Vicki Salmon, Member – Eden Park Trust Board, for their presentation regarding the Eden Park Trust loan guarantee.

CARRIED

 

Attachments

a     19 March 2019 - Finance and Performance Committee, Item 5.1 - Public Input - Eden Park Trust - PowerPoint presentation

 

 


 

 

6

Local Board Input

 

6.1

Local Board Input - Albert-Eden Local Board relating to Eden Park

 

Resolution number FIN/2019/22

MOVED by Cr C Fletcher, seconded by Cr S Stewart:  

That the Finance and Performance Committee:

a)      receive and thank Albert-Eden Local Board Chair, Peter Haynes, for his presentation regarding Eden Park.

CARRIED

 

 

The meeting adjourned at 1.28pm and reconvened at 1.53pm.

Cr L Cooper, Cr A Filipaina, IMSB Member T Henare, Cr P Hulse, Cr M Lee, and IMSB Chair D Taipari and Cr P Young were not present.

 

 


13

Eden Park Trust loan guarantee

 

Cr P Young returned to the meeting at 1.56pm.
Cr A Filipaina returned to the meeting at 1.57pm.
IMSB Member T Henare returned to the meeting at 1.57pm.
IMSB Chair D Taipari returned to the meeting at 1.57pm.
Cr L Cooper returned to the meeting at 1.57pm.
Cr P Hulse returned to the meeting at 1.57pm.
Cr M Lee
returned to the meeting at 1.59pm.
IMSB Member T Henare left the meeting at 3.07pm.

 

Note:   changes were made to clause b) ii) of the original motion with the agreement of the meeting prior to the amendment being moved

 

MOVED by Mayor P Goff, seconded by Cr A Filipaina:  

That the Finance and Performance Committee:

a)      authorise and delegate all necessary powers to the chief executive to:

i)        reach an agreement with Eden Park Trust and ASB Bank for Auckland Council to take over the $40 million loan from ASB Bank to Eden Park Trust together with other facilities provided by ASB Bank to Eden Park Trust before 30 September 2019.

ii)       reach an agreement with Eden Park Trust to consolidate the loans acquired from ASB Bank and Auckland Council loans into one or more new facilities on commercial terms including:

A)      first-ranking security over Eden Park Trust’s assets

B)      a term of up to ten years

C)     an interest rate set at council’s cost of funds plus a margin.

b)      authorise and delegate all necessary powers to the chief executive to agree a limited recourse loan to fund capital expenditure of up to $9.8 million over a three-year period from 1 July 2019 under the following terms:

i)        a Development Funding Agreement to be prepared documenting details of the funding to Eden Park Trust

ii)       all funding to be repayable in the event of any significant disposal of Eden Park Trust assets.

iii)      continued security over Eden Park Trust’s assets

iv)      no interest payable.

c)      agree that the chief executives of Auckland Council, Eden Park Trust and Regional Facilities Auckland jointly prepare an operational partnering proposal to be completed by March 2020.

 

 

 

MOVED by Deputy Chairperson D Simpson, seconded by Cr W Walker:   an amendment by way of replacement of clause b):

That the Finance and Performance Committee:

b)      authorise the chief executive to agree a grant to fund capital expenditure of up to $9.8 million over a three-year period from 1 July 2019 under a Development Funding Agreement. 

 

 

 

The meeting adjourned at 3.11pm and reconvened at 3.23pm.

Cr E Collins, IMSB Member T Henare, Cr G Sayers, IMSB Chair D Taipari, and Cr P Young were not present.

 

IMSB Member T Henare returned to the meeting at 3.24pm.

 

 

 

At 3.24pm, it was:

 

Resolution number FIN/2019/23

MOVED by Deputy Chairperson D Simpson, seconded by Chairperson R Clow:  

That the Finance and Performance Committee:

a)         agree pursuant to standing order 1.1.3, that an extension of time be granted, until the business of the agenda is complete.

CARRIED

 

 

 

Cr P Young returned to the meeting at 3.25pm.
Cr G Sayers
returned to the meeting at 3.25pm.
Cr E Collins returned to the meeting at 3.26pm.
IMSB Chair D Taipari returned to the meeting at 3.27pm.

 

 

MOVED by Cr C Fletcher, seconded by Cr S Stewart:  

That the Finance and Performance Committee:

a)            agree that the motion under debate should now be put.

 

 

 

 

 

 

 

 

 

 

 

 

 

A division was called for, voting on which was as follows:

For

Cr C Fletcher

Cr M Lee

Cr G Sayers

Deputy Chairperson Cr D Simpson

Cr S Stewart

Cr W Walker

Cr P Young

Against

Cr J Bartley

Cr C Casey

Chairperson Cr R Clow

Cr E Collins

Cr L Cooper

Cr C Darby

Cr A Filipaina

Mayor P Goff

Cr R Hills

IMSB Member T Henare

Cr P Hulse

Cr D Newman

IMSB Chair D Taipari

Cr J Walker

Cr J Watson

Abstained

 

The procedural motion was declared lost by 7 votes to 15.

 

 

 

Resolution number FIN/2019/24

MOVED by Deputy Chairperson D Simpson, seconded by Cr W Walker:  an amendment by way of replacement of clause b):

That the Finance and Performance Committee:

b)         authorise the chief executive to agree a grant to fund capital expenditure of up to $9.8 million over a three-year period from 1 July 2019 under a Development Funding Agreement. 

 

A division was called for, voting on which was as follows:

For

Cr C Fletcher

IMSB Member T Henare

Cr M Lee

Cr D Newman

Cr G Sayers

Deputy Chairperson Cr D Simpson

Cr S Stewart

IMSB Chair D Taipari

Cr J Walker

Cr W Walker

Cr J Watson

Cr P Young

Against

Cr J Bartley

Cr C Casey

Chairperson Cr R Clow

Cr E Collins

Cr L Cooper

Cr C Darby

Cr A Filipaina

Mayor P Goff

Cr R Hills

Cr P Hulse

Abstained

The amendment was declared carried by 12 votes to 10.

CARRIED

 

Cr Sir J Walker retired from the meeting at 5.04pm.

 

Resolution number FIN/2019/25

MOVED by Cr C Darby, seconded by Cr M Lee:  as an amendment by way of addition:

That the Finance and Performance Committee:

d)       invite Eden Park Trust Board to report to the Finance and Performance Committee on at least a six-monthly basis to outline its performance and financial projections.

e)       initiate discussions with the Government to seek amending the Eden Park Trust Deed to appropriately align the governance of Eden Park with funding.

CARRIED

 

 

The substantive motion was put in parts.

 

 

Resolution number FIN/2019/26

MOVED by Mayor P Goff, seconded by Deputy Chairperson D Simpson:  

That the Finance and Performance Committee:

a)      authorise and delegate all necessary powers to the chief executive to:

i)       reach an agreement with Eden Park Trust and ASB Bank for Auckland Council to take over the $40 million loan from ASB Bank to Eden Park Trust together with other facilities provided by ASB Bank to Eden Park Trust before 30 September 2019.

ii)      reach an agreement with Eden Park Trust to consolidate the loans acquired from ASB Bank and Auckland Council loans into one or more new facilities on commercial terms including:

A)     first-ranking security over Eden Park Trust’s assets

B)     a term of up to ten years

C)     an interest rate set at council’s cost of funds plus a margin.

c)      agree that the chief executives of Auckland Council, Eden Park Trust and Regional Facilities Auckland jointly prepare an operational partnering proposal to be completed by March 2020.

d)      invite Eden Park Trust Board to report to the Finance and Performance Committee on at least a six-monthly basis to outline its performance and financial projections.

e)      initiate discussions with the Government to seek amending the Eden Park Trust Deed to appropriately align the governance of Eden Park with funding.

CARRIED

 

 

 

Resolution number FIN/2019/27

MOVED by Mayor P Goff, seconded by Deputy Chairperson D Simpson:  

That the Finance and Performance Committee:

b)      authorise the chief executive to agree a grant to fund capital expenditure of up to $9.8 million over a three-year period from 1 July 2019 under a Development Funding Agreement.

 

 

 

 

 

 

A division was called for on clause b), voting on which was as follows:

For

Cr E Collins

Cr C Fletcher

IMSB Member T Henare

Cr M Lee

Cr D Newman

Cr G Sayers

Deputy Chairperson Cr D Simpson

Cr S Stewart

IMSB Chair D Taipari

Cr W Walker

Cr J Watson

Cr P Young

Against

Cr J Bartley

Cr C Casey

Cr L Cooper

Cr C Darby

Cr A Filipaina

Cr R Hills

Cr P Hulse

Abstained

Chairperson Cr R Clow

Mayor P Goff

The motion was declared carried by 12 votes to 7.

CARRIED

 

For clarity, the resolution reads as follows:

 

a)      authorise and delegate all necessary powers to the chief executive to:

i)        reach an agreement with Eden Park Trust and ASB Bank for Auckland Council to take over the $40 million loan from ASB Bank to Eden Park Trust together with other facilities provided by ASB Bank to Eden Park Trust before 30 September 2019.

ii)       reach an agreement with Eden Park Trust to consolidate the loans acquired from ASB Bank and Auckland Council loans into one or more new facilities on commercial terms including:

A)      first-ranking security over Eden Park Trust’s assets

B)      a term of up to ten years

C)     an interest rate set at council’s cost of funds plus a margin.

b)      authorise the chief executive to agree a grant to fund capital expenditure of up to $9.8 million over a three-year period from 1 July 2019 under a Development Funding Agreement.

c)      agree that the chief executives of Auckland Council, Eden Park Trust and Regional Facilities Auckland jointly prepare an operational partnering proposal to be completed by March 2020.

d)      invite Eden Park Trust Board to report to the Finance and Performance Committee on at least a six-monthly basis to outline its performance and financial projections.

e)      initiate discussions with the Government to seek amending the Eden Park Trust Deed to appropriately align the governance of Eden Park with funding.

 

 

14

Finance and Performance Committee - Information Report - 19 March 2019

 

Resolution number FIN/2019/28

MOVED by Chairperson R Clow, seconded by Deputy Chairperson D Simpson:  

That the Finance and Performance Committee:

a)      receive the information report – 19 February 2019.

CARRIED

 

 

 

15        Consideration of Extraordinary Items

 

There was no consideration of extraordinary items.   

 

 

 

16

Procedural motion to exclude the public

 

The public excluded item was withdrawn.

 

 

5.15pm                                               The Chairperson thanked Members for their attendance and attention to business and declared the meeting closed.

 

CONFIRMED AS A TRUE AND CORRECT RECORD AT A MEETING OF THE Finance and Performance Committee HELD ON

 

 

 

DATE:.........................................................................

 

 

 

CHAIRPERSON:........................................................