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Finance and
Performance Committee
19 March 2019
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Acknowledgement
The meeting opened with a moment’s
silence to acknowledge the recent tragic events in Christchurch.
1 Apologies
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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
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Note: Cr D Simpson did not
depart early.
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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
4 Petitions
There were no
petitions.
5 Public
Input
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5.1
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Public Input - Eden Park Trust
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Note: This item was considered later
in the meeting.
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6 Local
Board Input
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6.1
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Local Board Input - Albert-Eden Local Board
relating to Eden Park
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Note: This item was considered later
in the meeting.
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7 Extraordinary
Business
There was no
extraordinary business.
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8
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Recommendations from Appointments,
Performance Review and Value for Money Committee - Auckland Council
progress on savings up to 31 December 2018
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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.
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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.
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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
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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
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Cr Fletcher returned to the meeting at
10.49am
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10
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Approval of Auckland Regional Amenities
Funding Act levy 2019-2020
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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.
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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.
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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
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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
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11
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Approval of the Museum of Transport and
Technology levy 2019/2020
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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.
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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
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12
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Approval
of Auckland War Memorial Museum levy, 2019-2020
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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)
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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
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Attachments
a 19 March 2019 - Finance and Performance Committee, Item
12 - Approval of Auckland War Memorial Museum levy, 2019-2020 - highlights
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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.
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5.1
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Public Input - Eden Park Trust
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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.
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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.
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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
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Attachments
a 19 March 2019 - Finance and Performance Committee,
Item 5.1 - Public Input - Eden Park Trust - PowerPoint presentation
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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
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Eden Park Trust loan guarantee
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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.
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Note: changes
were made to clause b) ii) of the original motion with the agreement of the
meeting prior to the amendment being moved
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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.
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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.
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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.
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At 3.24pm, it was:
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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
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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.
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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:
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For
Cr C Fletcher
Cr M Lee
Cr G Sayers
Deputy Chairperson Cr D Simpson
Cr S Stewart
Cr W Walker
Cr P Young
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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
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Abstained
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The procedural motion
was declared lost by 7
votes to 15.
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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:
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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
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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
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Abstained
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The amendment was declared carried by 12 votes to 10.
CARRIED
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Cr Sir J Walker retired from the
meeting at 5.04pm.
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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
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The substantive motion was put in parts.
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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
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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:
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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
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Against
Cr J Bartley
Cr C Casey
Cr L Cooper
Cr C Darby
Cr A Filipaina
Cr R Hills
Cr P Hulse
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Abstained
Chairperson Cr R Clow
Mayor P Goff
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The motion was declared carried by 12 votes to 7.
CARRIED
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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.
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15 Consideration
of Extraordinary Items
There was no
consideration of extraordinary items.
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16
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Procedural motion to exclude the public
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The public excluded item was withdrawn.
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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:........................................................
