I hereby give notice that an extraordinary
meeting of the Finance and Performance Committee will be held on:
|
Date:
Time:
Meeting Room:
Venue:
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Tuesday, 15
December 2020
10.00am
Reception
Lounge
Auckland Town Hall
301-305 Queen Street
Auckland
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Kōmiti ā Pūtea, ā
Mahi Hoki /
Finance and Performance Committee
OPEN AGENDA
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MEMBERSHIP
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Chairperson
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Cr Desley Simpson, JP
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Deputy Chairperson
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Cr Shane Henderson
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Members
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Cr Josephine Bartley
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Mayor Hon Phil Goff, CNZM, JP
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IMSB Member Renata Blair
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Cr Richard Hills
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Cr Dr Cathy Casey
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Cr Tracy Mulholland
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Deputy Mayor Cr Bill Cashmore
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Cr Daniel Newman, JP
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Cr Fa’anana Efeso Collins
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Cr Greg Sayers
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Cr Pippa Coom
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Cr Sharon Stewart, QSM
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Cr Linda Cooper, JP
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IMSB Chair David Taipari
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Cr Angela Dalton
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Cr Wayne Walker
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Cr Chris Darby
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Cr John Watson
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Cr Alf Filipaina
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Cr Paul Young
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Cr Christine Fletcher, QSO
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(Quorum 11 members)
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Sandra Gordon
Senior Governance Advisor
9 December 2020
Contact Telephone: (09) 890 8150
Email: sandra.gordon@aucklandcouncil.govt.nz
Website: www.aucklandcouncil.govt.nz
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Terms of Reference
Responsibilities
The purpose of the committee is to:
a)
advise and support the mayor on the development of the Long-term Plan
(LTP) and Annual Plan (AP)
b)
monitor the overall financial management and performance of the council
parent organisation and Auckland Council group
c) make financial
decisions required outside of the annual budgeting processes.
The committee will establish an annual work programme
outlining key focus areas in line with its key responsibilities, which include:
·
advising and supporting the mayor on the development of the LTP
and AP for consideration by the Governing Body including:
o local
board agreements
o financial
policy related to the LTP and AP
o setting
of rates
o preparation
of the consultation documentation and supporting information, and the
consultation process, for the LTP and AP
·
monitoring the operational and capital expenditure of the council
parent organisation and Auckland Council Group, and inquiring into any material
discrepancies from planned expenditure
·
approving the financial policy of the council parent organisation
·
establishing and managing a structured approach to the approval
of non-budgeted expenditure (including grants, loans or guarantees) that
reinforces value for money and an expectation of tight expenditure control
·
approve the council insurance strategy and annual insurance
placement for Council
·
performance measures and monitoring
·
write-offs
·
acquisition of property in accordance with the LTP
·
disposals in accordance with the LTP
·
recommending the Annual Report to the Governing Body
·
funding for achieving improved outcomes for Māori.
Powers
(i) All
powers necessary to perform the committee’s responsibilities, including:
(a) approval of a
submission to an external body
(b) establishment
of working parties or steering groups.
(ii) The
committee has the powers to perform the responsibilities of another committee,
where it is necessary to make a decision prior to the next meeting of that
other committee.
(iii) If
a decision is a budgetary or financial decision that relates primarily to the
Finance and Performance Committee responsibilities, the Finance and Performance
Committee has the powers to make associated decisions on matters that would
otherwise be decided by other committees. For the avoidance of doubt, this
means that matters do not need to be taken to multiple committees for
decisions.
(iii) The
committee does not have:
(a) the
power to establish subcommittees
(b) powers
that the Governing Body cannot delegate or has retained to itself (section 2)
Exclusion of the public – who
needs to leave the meeting
Members of the public
All members of the public must leave the
meeting when the public are excluded unless a resolution is passed permitting a
person to remain because their knowledge will assist the meeting.
Those who are not members of the public
General principles
·
Access to confidential information is managed on a “need to
know” basis where access to the information is required in order for a
person to perform their role.
·
Those who are not members of the meeting (see list below) must
leave unless it is necessary for them to remain and hear the debate in order to
perform their role.
·
Those who need to be present for one confidential item can remain
only for that item and must leave the room for any other confidential items.
·
In any case of doubt, the ruling of the chairperson is final.
Members of the meeting
·
The members of the meeting remain (all Governing Body members if
the meeting is a Governing Body meeting; all members of the committee if the
meeting is a committee meeting).
·
However, standing orders require that a councillor who has a
pecuniary conflict of interest leave the room.
·
All councillors have the right to attend any meeting of a
committee and councillors who are not members of a committee may remain,
subject to any limitations in standing orders.
Independent Māori Statutory Board
·
Members of the Independent Māori
Statutory Board who are appointed members of the committee remain.
·
Independent Māori Statutory Board
members and staff remain if this is necessary in order for them to perform
their role.
Staff
·
All staff supporting the meeting (administrative, senior
management) remain.
·
Other staff who need to because of their role may remain.
Local Board members
·
Local Board members who need to hear the matter being discussed
in order to perform their role may remain. This will usually be if the
matter affects, or is relevant to, a particular Local Board area.
Council Controlled Organisations
·
Representatives of a Council Controlled Organisation can remain
only if required to for discussion of a matter relevant to the Council
Controlled Organisation.
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Finance and
Performance Committee
15 December
2020
|
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ITEM TABLE
OF CONTENTS PAGE
1 Apologies 7
2 Declaration of
Interest 7
3 Petitions 7
4 Public Input 7
5 Local Board
Input 7
6 Extraordinary
Business 7
7 Upper Harbour
Local Board Transport Targeted Rate for consultation 9
8 Emergency
Budget 2020/2021 - Update December 2020 43
9 Emergency
Budget 2020/2021 Asset Recycling implementation 47
10 Auckland Regional
Amenities Funding Board - Delegate approval of Council's submission for the
2021/2022 Funding Plan 65
11 Consideration of
Extraordinary Items
PUBLIC EXCLUDED
12 Procedural
Motion to Exclude the Public 67
C1 CONFIDENTIAL: Auckland Unlimited
Development Opportunity 67
C2 CONFIDENTIAL: Potential
development opportunity commercial approach (Covering report) 68
At the close of the agenda no apologies
had been received.
2 Declaration
of Interest
Members are reminded of the need to be
vigilant to stand aside from decision making when a conflict arises between
their role as a member and any private or other external interest they might
have.
3 Petitions
There is no petitions section.
4 Public
Input
There is no public
input section.
5 Local
Board Input
There is no local board input section.
6 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
15 December
2020
|
|
Upper
Harbour Local Board Transport Targeted Rate for consultation
File No.: CP2020/18873
Te take mō te
pūrongo
Purpose of the report
1. To
consider the recommendation from the Upper Harbour Local Board to consult
through the 10-year Budget 2021-2031 on options for introducing a Transport
Targeted Rate to provide additional public transport services in Paremoremo.
Whakarāpopototanga matua
Executive summary
2. The
Upper Harbour Local Board considered a report from the Manager Financial Policy
on options for consultation on a local transport targeted rate at its
extraordinary meeting of Tuesday, 1 December 2020. The original report to the
local board meeting of 1 December 2020 can be found under Attachment A.
3. The
local board considered the options provided and requested further advice on an
additional option to recommend to the Governing Body for consultation the
introduction of additional public transport services in Paremoremo and funding
this from an Upper Harbour Local Board Transport Targeted Rate.
4. During
consideration of the item, area maps were tabled in relation to Option 2 which
can be found under Attachment B.
5. The
local board resolved as follows:
Resolution number UH/2020/140
MOVED by Chairperson M Miles, seconded by Member A
Atkinson
That the Upper Harbour Local Board:
a) recommend
that the Governing Body consult through the 10-year Budget 2021-2031 on options
for introducing a Transport Targeted Rate to provide additional public
transport services in the Paremoremo area, as follows:
i) Option
1 – Upper Harbour Local Board Transport Targeted Rate of $259 per
Separately Used or Inhabited Part on properties in the serviced area to fund a
Paremoremo – Albany bus service as part of the 10-year Budget 2021-31
ii) Option
2 (preferred) – Upper Harbour Local Board Transport Targeted Rate of an
amount per Separately Used or Inhabited Part, to be advised by the Finance
department prior to the Finance and Performance Committee meeting on 15
December 2020, applied to properties in the service area of Paremoremo,
including additional properties in the Upper Harbour Local Board area within
the boundaries between Lucas Creek, Brookdale Road and Ridge Road, including
The Avenue and its side roads (as per the map in Attachment A to the minutes
document).
b) note,
as per advice from staff at the meeting, further work will be carried out by
Auckland Transport on capital costs to inform the Finance and Performance
Committee meeting on 15 December 2020 of rate costings for Options 1 and 2
outlined above in clause a).
c) forward
the local board decision to the Mayor and councillors for their information.
d) request
speaking rights at the Finance and Performance Committee meeting on
15 December 2020 to speak to its recommendations with regard to the
proposed options for consultation on introducing a Transport Targeted Rate to
provide additional public transport services in the Paremoremo area.
CARRIED UNANIMOUSLY
6. The
committee is requested to consider the recommendation from the Upper Harbour
Local Board and decide whether to recommend to the Governing Body (through the
Finance and Performance Committee) an item for consultation through the 10-year
Budget 2021-2031.
7. These
decisions are required to enable the preparation of the consultation document
and supporting information for public consultation.
|
Ngā tūtohunga
Recommendation/s
That the Finance and
Performance Committee:
a) consider
the recommendation from the Upper Harbour Local Board to consult through the
10-year Budget 2021-2031 on options for introducing a Transport Targeted Rate
to provide additional public transport services in Paremoremo.
b) decide
whether to recommend to the Governing Body that the consultation document and
supporting information include an item for consultation on the proposed
options for introducing a Transport Targeted Rate to provide additional
public transport services in Paremoremo.
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Ngā tāpirihanga
Attachments
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No.
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Title
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Page
|
|
a⇩
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Original report to the Upper Harbour Local Board
Extraordinary Meeting of 1 December 2020
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11
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b⇩
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Area map for Option 2, tabled at the Upper Harbour
Local Board meeting
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31
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Ngā kaihaina
Signatories
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Author
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Sandra Gordon - Senior Governance Advisor
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Authoriser
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Kevin Ramsay - Acting Group Chief Financial Officer
|
|
Finance and
Performance Committee
15 December
2020
|
|
|
Finance and
Performance Committee
15 December
2020
|
|
|
Finance and
Performance Committee
15 December
2020
|
|
|
Finance and
Performance Committee
15 December
2020
|
|
|
Finance and
Performance Committee
15 December
2020
|
|
|
Finance and
Performance Committee
15 December
2020
|
|
|
Finance and Performance
Committee
15 December
2020
|
|
|
Finance and
Performance Committee
15 December
2020
|
|
|
Finance and
Performance Committee
15 December
2020
|
|
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Finance and
Performance Committee
15 December
2020
|
|
|
Finance and
Performance Committee
15 December
2020
|
|
|
Finance and
Performance Committee
15 December
2020
|
|
|
Finance and
Performance Committee
15 December
2020
|
|
Emergency Budget 2020/2021 - Update
December 2020
File No.: CP2020/17737
Te take mō te
pūrongo
Purpose
of the report
1. To provide the committee with financial update information since the
Emergency Budget was adopted.
Whakarāpopototanga matua
Executive summary
2. The
Emergency Budget 2020/2021 was adopted by the Governing Body on 30 July 2020.
3. The
final budget included a projected reduction in cash operating revenue of around
$450 million for 2020/2021 as a result of COVID-19 and a range of measures such
as reductions in operating expenditure, temporarily elevated debt levels,
capital expenditure deferrals, and asset recycling to mitigate the impact
of this revenue shortfall as well as the unprecedented drought situation.
4. As the COVID-19 situation is still evolving, its financial impacts
on council remain uncertain. Finance staff will monitor the progress for
2020/2021, including the financial performance of Auckland Council and its
CCOs, and progress on other key mitigations to ensure the group can respond to
any material changes to the Emergency Budget. Staff will report on progress to
the Finance and Performance Committee on a monthly basis.
Progress for 2020/2021
against the Emergency Budget
5. A
verbal update on the group financial performance for November 2020, accompanied
by a performance dashboard, will be provided at the meeting.
6. Auckland
Council continued to make progress towards the $120 million savings target in
the month of November 2020. A further $8 million of savings was achieved,
bringing the total achieved savings to $95 million or 79 per cent.
|
Ngā tūtohunga
Recommendation/s
That the Finance and Performance Committee:
a) receive
the update on progress for financial year 2020/2021.
b) note
that Auckland Council has achieved $95 million towards the $120 million council organisation savings
target.
|
Horopaki
Context
7. The
Emergency Budget 2020/2021 was adopted by the Governing Body on 30 July 2020.
8. The
financial implications of COVID-19 were highly uncertain at the time when the
Emergency Budget was prepared. Therefore, the adopted budget was developed
based on a set of forecasting assumptions for a “most likely
scenario”. Key assumptions included government decisions on alert levels
and the economic outlook.
9. The
final budget included a projected reduction in cash operating revenue of around
$450 million for 2020/2021 as a result of COVID-19 and a range of measures
including reductions in discretionary expenditure, temporarily elevated debt
levels, capital expenditure deferrals, temporary reductions in operating
service levels and asset recycling to mitigate the
impact of this revenue shortfall as well as the unprecedented drought
situation.
10. As
the COVID-19 situation is still evolving, its financial impacts on council
remain uncertain. As the 2020/2021 year progresses,
staff will monitor the financial performance of the council and its CCOs to
ensure the group can respond to any material variations from the Emergency
Budget. Staff will report on progress to the Finance and Performance Committee
on a monthly basis.
Tātaritanga me ngā
tohutohu
Analysis and advice
Progress for 2020/2021 against the
Emergency Budget
Financial performance
11. A
verbal update on the group financial performance for November 2020, accompanied
by a performance dashboard, will be provided at the meeting.
Savings
progress for Auckland Council
12. The
Emergency Budget included group savings and cost reductions of over $200
million compared to the group budget submitted in March 2019. The progress
towards the savings target for Auckland Council of $120 million is reported
monthly. Progress of the CCOs towards their savings targets will be reported
through the quarterly performance reporting to the CCO Oversight Committee.
13. 
At the end of November, Auckland Council
has achieved $95 million (79 per cent) towards the $120 million savings target,
an increase of $8 million savings from October. Savings amounts reflect the reduction
in the annual budget as a result of the initiative. Savings of note in the
month include:
· $2.00 million of
Sport and Recreation Facilities Investment Fund additional deferral of current
year unallocated budget following the decisions of the Parks, Arts, Community
and Events Committee and signing of funding agreements setting the timing of
payments
· $4.71 million permanent savings from
organisational structure changes, including in support services and planning,
achieved through the reduction of vacant roles and some redundancies
· $0.42 million
one-off savings from reduced utilities costs from facilities closures due to
COVID-19 lockdown
· $0.26 million
ongoing savings from Regulatory Services’ fringe benefit tax reduction
through the use of automated vehicle tracking to inform tax payment obligations
· $0.20 million
permanent savings through favourable contract procurement for fire and security
systems maintenance.
14. Of
the $95 million savings achieved to date, $65 million is one-off cuts or
deferrals of expenditure and $30 million is permanent savings.
Tauākī whakaaweawe
āhuarangi
Climate impact statement
15. Updates
on the financial progress for 2020/2021 provided in this report do not have any
direct impact on climate change. However, close monitoring and providing
visibility to this committee enables continued prudent financial management of
the Auckland Council Group. Achieving efficiency savings and maximising
financial benefits will assist in freeing up resources for applying to the
council’s strategic priorities such as climate change.
16. There
is no additional climate impact in relation to the other updates in this
report.
Ngā whakaaweawe me
ngā tirohanga a te rōpū Kaunihera
Council group impacts and
views
17. Progress
against the Emergency Budget is closely monitored across the entire council
group, based on performance information provided by the council and respective
CCO finance teams.
Ngā whakaaweawe
ā-rohe me ngā tirohanga a te poari ā-rohe
Local impacts and local board
views
18. Local
board views and preferences were taken into account during the Emergency Budget
process. The monitoring of progress against the Emergency Budget includes local
board budgets.
19. There
is no specific impact on local communities from the updates provided in this
report.
Tauākī whakaaweawe
Māori
Māori impact statement
20. This
budget update report is for information only and therefore does not have direct
impact on Māori.
21. Auckland
Council has obligations under Te Tiriti o Waitangi and the Significance and
Engagement Policy to take special consideration when engaging with Māori
to enable Māori participation in council decision making to promote
Māori well-being. The Emergency Budget public consultation engagement
programme included:
· Raising awareness of the opportunity to give feedback through the
current Māori database
· Targeted Māori community engagement through partners, covering
our high population areas and regionwide, supporting feedback through online
and hard copy submission forms
· Live discussions and Q&A with elected members and subject matter
experts through Radio Waatea, with a focus on high population areas in the West
and South and including the opportunity for audience and online feedback direct
to decision-makers
· Māori-focused social media campaign.
22. Feedback was collated as part of the Emergency Budget process and
presented by iwi to the Governing Body on 17 June 2020 and subsequently
presented to councillors as part of the main feedback report for their
consideration at the Finance and Performance Committee on 8 July 2020.
23. Future
agenda items may have implications for Māori and the Emergency Budget
identified relevant Maori outcomes which will be addressed in the respective
reports.
Ngā ritenga
ā-pūtea
Financial implications
24. Staff
will reassess the overall group financial position after the half-year finishes
on 31 December 2020 based on the six-monthly operating and capital financial
performance as well as progress with asset recycling. Staff will advise the
committee on any resultant budget changes required to stay within the overall
key financial parameters set for the Emergency Budget.
Ngā raru tūpono me
ngā whakamaurutanga
Risks and mitigations
25. As
the financial year progresses and the COVID-19 situation develops, there is a
risk of further impacts on the council’s financial projections. This will
require close monitoring to ensure council is able to best respond to these
changes.
Ngā koringa ā-muri
Next steps
26. Finance
staff will continue to monitor the financial performance and projections and
update this committee when there are further developments.
Ngā tāpirihanga
Attachments
There are no attachments for this report.
Ngā kaihaina
Signatories
|
Authors
|
Tracy Xu - Senior Analyst
Susan Jiang Su - Financial Analyst
|
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Authorisers
|
Ross Tucker - General Manager,
Financial Strategy and Planning
Kevin Ramsay - Acting Group Chief
Financial Officer
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Finance and
Performance Committee
15 December
2020
|
|
Emergency Budget 2020/2021 Asset
Recycling implementation
File No.: CP2020/18403
Te take mō te
pūrongo
Purpose of the report
1. To provide an update on progress towards the Emergency Budget asset
recycling target and to seek approval for the disposal of one property.
Whakarāpopototanga matua
Executive summary
2. Asset
recycling is an important lever for the council allowing capital to be invested
in the most strategically important activities. The Emergency Budget includes
$244 million proceeds to be realised from asset recycling in 2020/2021.
3. At
the end of November 2020, $34 million had been achieved. Achieving the
budget remains at risk largely due to uncertainty in respect of the carpark
concessions.
4. Most
properties identified in the Emergency Budget have been approved for
disposal. Issues are being worked on for the balance of these
properties.
5. The
property rationalisation process is dynamic with properties being added (as new
opportunities are identified) and removed (when investigation indicates the
property is no longer a rationalisation candidate).
6. Disposal
of the Council owned property at 2 Wiremu Street, Balmoral is
recommended. This is a commercially operated childcare which has never
been a council service property. Extensive investigations have been
completed by staff on alternative uses. No viable planned or funded
alternative use has been identified. The Albert-Eden Local Board do not
support the disposal.
7. Good
progress has been made by the Waiheke Local Board working with other community
organisations on the future of 7 Waitai Road, Waiheke. Subject to the
successful completion of due diligence it is anticipated that one of the
organisations will be in position to make an offer to purchase the property in
February 2021.
8. Further
approvals together with progress reporting will be provided to the Finance and
Performance Committee at future meetings.
|
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 2 Wiremu Street, Balmoral (NA207/106, Part lot 39-40 DP4347)
with the final terms and conditions to be approved under the appropriate
delegations.
b) note
the asset recycling update and the status of properties identified in the
Emergency Budget 2020/21.
c) note
the progress made by the Waiheke Local Board on investigating future
community uses for 7 Waitai Road, Waiheke. Subject to successful due
diligence an offer to purchase the property is anticipated in February 2021.
|
Horopaki
Context
9. Asset
recycling is an important lever for the council allowing capital to be invested
in the most strategically important activities.
10. The Emergency
Budget includes $244 million proceeds to be realised from asset recycling in
2021/2022.
11. The 10-year
budget also has financial targets from asset recycling (excluding asset sales
linked directly to specific projects and programmes such as the unlock and
transform programme).
12. A key
consideration for asset recycling is the opportunity cost of holding an asset
which is not providing a service or generating an appropriate financial return
against the opportunity of investing in new assets which deliver council
services.
Tātaritanga me ngā
tohutohu
Analysis and advice
Status update
13. Achieving the
Emergency Budget asset recycling budget target of $244 million by the end of
2020/2021 remains at risk. There is greater confidence
of achieving the budget by 30 September 2021. This increased confidence is due
to the time, or runway available, to affect the proposed sales.
14. The increased
volume of transactions, complex sales processes and negotiations, and the focus
on maximising value for money all add pressure to achieving the budget by end
of 2020/2021 financial year. However, sales not occurring this financial year
will likely occur early in the following financial year.
15. Work on the
Emergency Budget asset recycling budget target continues to be guided by the
principles agreed by the Finance and Performance Committee and Governing Body
in July 2020. The principles provide an operating framework for elected members
and council staff to operate as the budget is implemented.
16. Good progress
is being made on property rationalisation but there is high uncertainty in
respect of the proposed carpark concession.
17. The current
financial position is:
|
$ Million
|
Budget
|
Achieved
|
Forecast
|
Status
|
|
Property
rationalisation
|
125
|
33.5
|
100 - 150
|
On track
|
|
Alternative
commercial arrangements
|
119
|
0.5
|
TBC
|
At risk
|
|
Total
|
244
|
34
|
TBC
|
At risk
|
Property rationalisation
18. The approved
pipeline of all opportunities is $191.2 million. Approved properties are at
various stages of pre-sale activity with focus on the largest opportunities.
Estimating time of sale and settlement at this stage is difficult due to the
number of unknown factors.
19. The top 10
properties are worth $112.9 million. These are anticipated to be sold by June
2021 or early in the next financial year. The sales approach for these has been
agreed by the Panuku Board.
20. Approval of
the committee will be sought for further disposals during the balance of the
financial year and these properties will contribute towards the budget for
2021/2022.
21. The reserve
revocation process for some properties previously approved will commence at the
end of January 2021. This will provide communities with an opportunity to
express their views and preferences on the proposed revocation of reserve
status prior to any sale.
Alternative commercial arrangements
22. Auckland
Transport are progressing the business case for the sale of the carpark
concession. The business case will be completed and considered by the
Auckland Transport Board in early 2021 for them to recommend a proposed
approach to the Finance & Performance Committee.
Vehicle fleet
23. Optimisation of the vehicle fleet continues. To date, 75 vehicles of the target
of 180 have been sold.
Other opportunities
24. Staff are developing a multi-year view to inform the long-term plan
development. Opportunities are being assessed by staff and will be
brought for Finance & Performance Committee
consideration in due course.
Property rationalisation pipeline
25. The
property rationalisation process is managed by Panuku. Panuku operate across
the council group identifying property (land
and buildings) which do not have a current or future service use and could be
candidates for rationalisation. This includes identifying properties in the
council portfolio that are no longer required for future services (or public
work) purposes and may be suitable for sale, and development if appropriate. It
also includes open space where there is an over provision in certain areas to
allow re-investment where there is less provision.
26. The
property rationalisation process is well developed. 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. The rationalisation process also includes engagement with ward councillors, local boards and mana whenua.
27. Most properties included in the Emergency Budget have been approved
by the Finance & Performance Committee. For those
not approved, staff are working through known issues and engaging with local
boards prior to Finance & Performance Committee
consideration in 2021.
28. The status of properties included in the Emergency Budget is:
|
Properties
|
Number
|
|
Properties included in Emergency Budget consultation document
|
103
|
|
Properties added
|
1
|
|
TOTAL
|
104
|
|
Approved for disposal July 2020
|
48
|
|
Approved for disposal September 2020
|
13
|
|
Approved for disposal October 2020
|
23
|
|
Total approved
|
84
|
|
Removed from pipeline after further investigation (E.g.
retained for stormwater management)
|
7
|
|
Properties still being investigated
|
13
|
|
TOTAL
|
104
|
29. The
following properties included in the Emergency Budget are still being
investigated. Properties with higher priority provide a greater financial
contribution to the budget target.
|
Local Board
|
Property
|
Priority
|
Issues
|
Timing
|
|
Albert-Eden
|
2 Wiremu
Street, Balmoral
|
H
|
To be
considered December.
|
Dec 2020
|
|
Albert-Eden
|
520 Dominion
Road (part), Balmoral
|
L
|
Building
condition assessment required by Community Facilities.
Could only be
sold to adjoining owner - need to determine interest.
|
Mar 2021
|
|
Albert-Eden
|
738 Mt Eden
Road, Mt Eden
|
L
|
Could only be sold
to adjoining owner – need to determine interest.
|
Mar 2021
|
|
Devonport-Takapuna
|
1/328 Lake
Road, Hauraki
|
L
|
Cross leased
property with legal access issues.
|
Mar 2021
|
|
Kaipatiki
|
25 Alfred
Street, Northcote Point
|
L
|
Local board
seeking to classify as a reserve.
|
Mar 2021
|
|
Orakei
|
9 Tagalad Road,
Mission Bay
|
H
|
Investigation
underway on alternative use – as community garden.
Land was
originally gifted.
|
June 2021
|
|
Papakura
|
26-32
O’Shannessey Street, Papakura
|
M
|
Previous
Committee resolution to retain to end of 2021 to allow AT to investigate car
park requirements.
|
Mar 2022
|
|
Papakura
|
36 Coles
Crescent, Papakura
|
M
|
Previous
Committee resolution to retain to end of 2021 to allow AT to investigate car
park requirements.
|
Mar 2022
|
|
Rodney
|
14 Baxter
Street, Warkworth
|
M
|
Complex site
requiring significant capital investment.
Workshop held
with local board.
|
Mar 2021
|
|
Waitemata
|
19/28, 20/28
Remuera Road, Newmarket
|
M
|
Investigation
into use as activation space to be completed.
|
June 2021
|
|
Waitemata
|
313-321, 329 Queen
Street, Auckland Central
|
L
|
Heritage
properties, seismic issues.
To incorporate
into future Aotea and Myers Park planning.
|
2022
|
|
Whau
|
1B Rankin
Avenue, New Lynn
|
H
|
Acquired for
roading purposes. Investigations completed. To progress engagement
with local board.
|
Mar 2021
|
|
Whau
|
13 Crown Lynn
Place, New Lynn
|
H
|
Identified as
potential site for aquatic centre.
Business case
required prior to decision making.
|
June 2021
|
Developing future pipeline
30. The
property rationalisation process is dynamic with properties being added (as new
opportunities are identified) and removed (when investigation indicates the
property is no longer a rationalisation candidate).
31. Staff
are investigating properties to be included in the pipeline over the next 3
years. It is anticipated that this will be shared with the Finance &
Performance Committee in the last quarter (April to June 2021) of the current
financial year.
Disposal consideration for 2 Wiremu Street, Balmoral
32. Approval is sought for the disposal of 2 Wiremu
Street, Balmoral. This property is commercially leased as a childcare facility
and has never been a council service property.
33. This property has previously been considered by the Finance
& Performance Committee and not approved for
disposal. In June 2016, the Committee received a
presentation from the Albert-Eden Local Board and Panuku’s disposal
recommendation report on the property. The committee
resolved (resolution FIN/2016/1) for council departments to determine the need
for and possible location of a suitable community hub for senior and other
community groups; and (resolution FIN/2016/2) to defer a decision on the
future of 2 Wiremu Street until the end of 2016.
34. The
property was considered again by the Finance & Performance Committee at its
meeting on 17th September 2020. At that meeting concern was
expressed that the previous resolution of the Finance & Performance
Committee had not been satisfactorily resolved and the committee requested
(informally with no resolution) to discuss with the local board.
35. The
local board’s views and preferences have changed from 2016 to 2020.
In 2016 the preferred use was for a “community hub for senior and other
community groups” and in 2020 the local board passed a resolution for a
“community centre/hub or for a future civic square”.
Engagement with the local board
36. A
briefing memorandum was prepared by staff for the Albert-Eden Local Board
(Attachment A) outlining the property history, prior investigations undertaken
and staff analysis.
37. A
site visit was arranged for local board members and on 10 November 2020 a
workshop was held with relevant staff from the Finance Division, Property and
Commercial, and Panuku (Asset Optimisation).
38. The
views and preferences expressed by the local board at the workshop was that the
property should be converted to a civic square.
39. Development
into a civic square has previously been investigated by staff.
Development into a future civic square likely requires acquisition of other
property. The current property is only 726m2. Opportunities to
acquire other adjacent property is likely to be limited due to the location of
an adjacent church and school. Nearby Potters Park is well-developed open
space which is less than 200 metres away. Staff provided this advice to
the local board at the workshop.
40. Following
the local board workshop, Parks and Recreation Policy have again reviewed the
site and advised that this location would not be the preferred location for a
civic space. Should there be a need for a civic space in Balmoral this should
be confirmed if/when the light rail route is finalised.
41. Attachment
B shows the property location, the constraints to increasing the size of the
site and the proximity to Potters Park and Mount Eden War Memorial Hall.
Addressing the 2016 resolution of the
Committee
42. Following
the 2016 resolution of the Committee there was investigation on alternative
uses of the property. This included the local board engaging
‘Innovate Engage’ to “help them better understand how the
community facilities in the Albert-Eden area are used and identify
opportunities to improve facility accessibility and effectiveness”. The conclusions of the review included:
a. Community facilities
are in use most of the time.
b. There is no evidence of
large-scale unmet demand for community facility access.
43. Previously
there has been a facility for seniors in the local board area. Mt. Albert
Senior Citizens Hall is in Rocket Park (2km from the property).
Previously, it was dedicated for senior citizens but due to low utilisation it
is now a hall for hire.
44. Community
Facilities and Community Leasing teams reconfirmed previous advice to
Albert-Eden Local Board that:
· the
local board area is well provisioned with both council facilities and external
provider facilities for hire.
· the
property was not suitable for community leasing due to the age and
configuration of the premises.
· Mt-Eden
War Memorial Hall is 200 metres away.
Is there current unmet demand in the
local board area?
45. Community
Leasing maintain an interest register for groups seeking accommodation.
Currently there are 11 expressions of interested recorded for a variety of
accommodation requirements in the Albert-Eden area. A review of these
groups’ requirements indicate that 2 Wiremu Street is not suitable for
any of these groups.
If there was unmet demand would 2 Wiremu Street be suitable as a
community facility?
46. The
property is a former residential house modified for use as a childcare
facility. Modifications include ramps for improved access but also that
other parts of the building such as toilet height have been modified to
accommodate the needs of pre-school children.
47. The
general approach for community facilities is for them to accommodate a range of
uses and users. The size, configuration, and room size of the property is
small compared to other community facilities.
48. The
property is older with potentially higher future maintenance requirements and
is not suitable as a community facility.
Conclusions
49. Significant
time has been invested in investigating potential alternative uses for the
premises. No planned or funded viable alternative use has been
identified.
50. No
funding is available for this property to be converted to an alternative use
and no provision has been made in the local board plans or any other strategic
plans.
51. Approval is sought for the disposal of this
property.
Update on 7 Waitai Road, Waiheke
52. This property was approved for disposal on 17th September
2020. The Waiheke Local Board requested time to investigate alternative
uses of the property including as either community housing or for the provision
of health services. The Committee resolved to support the local
board request with a report back in December 2020.
53. Since October
the local board, supported by Council and Panuku staff, has
worked with the Waiheke Housing Trust, the Waiheke Health
Trust and Ngati Paoa Iwi Trust on uses for the site which will both benefit the
community and meet the council’s financial objectives. Good
progress has been made.
54. The property acquisition is only a small part of any future
development. The potential purchaser must develop future designs, secure
funding and engage with the wider community. These items are all
underway.
55. Subject to the successful completion of due diligence it is
anticipated that one of the parties will be in position to make an offer to
purchase the property in February 2021.
56. This extension of time is reasonable and supported by staff.
Tauākī whakaaweawe
āhuarangi
Climate impact statement
57. Recommendations
in this report have a neutral climate impact.
58. Should this
property be sold, future development may have an adverse climate impact;
however the cash receipts allow council to respond to climate impacts.
Ngā whakaaweawe me
ngā tirohanga a te rōpū Kaunihera
Council group impacts and views
59. Asset
recycling takes a group wide approach. Council and CCO’s all identify
potential opportunities and prior to any disposal checks are made that council
or a CCO do not have an alternative use.
60. Implementing
the resolutions in this report will require input from council, Auckland
Transport and Panuku.
Ngā whakaaweawe
ā-rohe me ngā tirohanga a te poari ā-rohe
Local impacts and local board views
61. The
Albert-Eden local board do not support the disposal of 2 Wiremu Street.
The analysis section of this report and Attachment A outline the local boards
views and preferences in respect of potential future uses.
62. The Waiheke
Local Board support the extension of time to February 2022 for the disposal of
7 Waitai Road, Waiheke to allow due diligence to be completed.
63. Other local
boards will be interested in the property pipeline and these boards will be
engaged as these are progressed.
Public consultation views on asset recycling
64. No
feedback was received during the Emergency Budget consultation in respect of 2
Wiremu Street.
Tauākī whakaaweawe
Māori
Māori impact statement
65. Māori
have an active and specific role in Auckland, including kaitiakitanga
(guardianship) of our land and marine resources. Land has a specific role in
protecting, enabling and building Māori social and cultural capital. Local
marae, kohanga reo, and other Māori entities offer spiritual, cultural, as
well as a range of social, educational, health and justice services for the
community.
66. The
importance of effective communication and engagement with Māori about land
is understood. The process to date undertaken by Panuku is 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. This provides mana whenua the opportunity to
respond with any issues of cultural significance the group would like to
formally express in relation to the subject properties.
67. Mana whenua
consultation for the subject properties has been undertaken. As part of
Panuku’s disposal process, all iwi entities will be given early notice
before subject properties are taken to market to allow them to express
potential commercial interest in the subject sites.
68. No mana
whenua feedback was received for 2 Wiremu Street.
69. Waiheke local
board have been working with Ngati Paoa Iwi Trust in respect of future uses for
7 Waitai Street.
Ngā ritenga
ā-pūtea
Financial implications
70. Capital
receipts from the sale of properties not required by Auckland Council
contribute to the Emergency and 10-year Budgets by providing the Council with
an efficient use of capital and prioritisation of funds to achieve its
activities and projects.
Ngā raru tūpono me
ngā whakamaurutanga
Risks and mitigations
71. 2 Wiremu
Street, Balmoral is not required for a council service use. The following are
potential risks of retaining the property:
· Increased
current and future maintenance costs
· The
opportunity cost of not being able to invest in strategically important
activities
· Economic
downturn making it more difficult to attract potential purchasers at the
optimum price.
72. There may be
a perceived risk that disposing of this property means that it will not be
available for future council group use if required and further purchases may be
necessary. This risk is considered low because we have carefully confirmed
throughout extensive investigation and consultation with the group that this
property is not required now or in the future for a council service use.
Ngā koringa ā-muri
Next steps
73. Should
the Finance and Performance Committee approve the proposed disposal, the
following will be completed (in accordance with the principles):
a. Completion
of any statutory obligations
b. Prepare
property for sale and complete sales process.
74. The Finance and Performance Committee will receive regular reporting
on progress.
Ngā tāpirihanga
Attachments
|
No.
|
Title
|
Page
|
|
a⇩
|
Memo to Albert-Eden Local Board
|
57
|
|
b⇩
|
Location of 2 Wiremu Street
|
63
|
Ngā kaihaina
Signatories
|
Author
|
Ross Chirnside – Programme Lead
|
|
Authoriser
|
Kevin Ramsay - Acting Group Chief Financial Officer
|
|
Finance and
Performance Committee
15 December
2020
|
|
|
Finance and
Performance Committee
15 December
2020
|
|
|
Finance and
Performance Committee
15 December
2020
|
|
Auckland Regional Amenities Funding
Board - Delegate approval of Council's submission for the 2021/2022 Funding
Plan
File No.: CP2020/17411
Te take mō te
pūrongo
Purpose of the report
1. To
delegate approval of the Auckland Council submission to the Auckland Regional
Amenities Funding Board Draft Funding Plan 2021/2022.
Whakarāpopototanga matua
Executive summary
2. The
Auckland Regional Amenities Funding Act 2008 (the Act) provides for eight
regional organisations to submit annual funding applications to the Auckland
Regional Amenities Funding Board (Funding Board).
3. The
Funding Board must analyse these applications and in accordance with the Act
prepare a draft funding plan that provides any information that is
necessary to enable an informed assessment of the annual levy.
4. The
draft funding plan is yet to be published by the Funding Board. When it
is published, Council can make a submission on the draft funding
plan.
5. The
final date for receiving submissions will be 10 February 2021 which is prior to
the first Finance & Performance Committee meeting of 2021 (which is on 18
February 2021).
6. Following
consideration of any submissions, the funding plan will be finalised and
Auckland Council levy will be assessed. A Finance & Performance Committee
report in March 2021 will consider the levy itself.
7. Given
the timing difference between publication of the draft funding plan, the
Finance and Performance Committee meetings, and the submission period, this
report seeks to delegate approval of council’s submission on the Draft
Funding Plan 2021/2022 to the chair and deputy chair of this committee.
|
Ngā tūtohunga
Recommendation/s
That the Finance and
Performance Committee:
a) delegate
approval of the Auckland Council submission to the Auckland Regional
Amenities Funding Board Draft Funding Plan 2021/2022 to the chair and deputy
chair of the Finance and Performance Committee.
|
Ngā tāpirihanga
Attachments
There are no attachments for
this report.
Ngā kaihaina
Signatories
|
Author
|
Josie Meuli - Senior Advisor
|
|
Authorisers
|
Alastair Cameron - Manager - CCO Governance &
External Partnerships
Phil Wilson - Governance Director
Kevin Ramsay - Acting Group Chief Financial Officer
|
|
Finance and
Performance Committee
15 December
2020
|
|
Exclusion of the Public: Local Government Official Information
and Meetings Act 1987
That the Finance
and Performance Committee
a) exclude
the public from the following part(s) of the proceedings of this meeting.
The general
subject of each matter to be considered while the public is excluded, the
reason for passing this resolution in relation to each matter, and the specific
grounds under section 48(1) of the Local Government Official Information and
Meetings Act 1987 for the passing of this resolution follows.
This resolution
is made in reliance on section 48(1)(a) of the Local Government Official
Information and Meetings Act 1987 and the particular interest or interests
protected by section 6 or section 7 of that Act which would be prejudiced by
the holding of the whole or relevant part of the proceedings of the meeting in
public, as follows:
C1 CONFIDENTIAL:
Auckland Unlimited Development Opportunity
|
Reason for
passing this resolution in relation to each matter
|
Particular
interest(s) protected (where applicable)
|
Ground(s)
under section 48(1) for the passing of this resolution
|
|
The public
conduct of the part of the meeting would be likely to result in the
disclosure of information for which good reason for withholding exists under
section 7.
|
s7(2)(b)(ii)
- The withholding of the information is necessary to protect information
where the making available of the information would be likely unreasonably to
prejudice the commercial position of the person who supplied or who is the
subject of the information.
s7(2)(h) -
The withholding of the information is necessary to enable the local authority
to carry out, without prejudice or disadvantage, commercial activities.
s7(2)(i) -
The withholding of the information is necessary to enable the local authority
to carry on, without prejudice or disadvantage, negotiations (including
commercial and industrial negotiations).
In
particular, the report contains commercial information that is subject to
negotiation and could impact on Auckland Unlimited and Council’s
negotiation position, particularly in regards to the negotiation of lease
arrangements with third parties. In addition, information contained in this
report was provided by a third party and the disclosure of this information
could prejudice its commercial position.
|
s48(1)(a)
The public
conduct of the part of the meeting would be likely to result in the
disclosure of information for which good reason for withholding exists under
section 7.
|
C2 CONFIDENTIAL:
Potential development opportunity commercial approach (Covering report)
|
Reason for
passing this resolution in relation to each matter
|
Particular
interest(s) protected (where applicable)
|
Ground(s)
under section 48(1) for the passing of this resolution
|
|
The public
conduct of the part of the meeting would be likely to result in the
disclosure of information for which good reason for withholding exists under
section 7.
|
s7(2)(b)(i) -
The withholding of the information is necessary to protect information where
the making available of the information would disclose a trade secret.
s7(2)(h) -
The withholding of the information is necessary to enable the local authority
to carry out, without prejudice or disadvantage, commercial activities.
s7(2)(i) -
The withholding of the information is necessary to enable the local authority
to carry on, without prejudice or disadvantage, negotiations (including
commercial and industrial negotiations).
In
particular, the report contains information relating to a future commercial
negotiation. Releasing this information would negatively impact
council's negotiations.
|
s48(1)(a)
The public
conduct of the part of the meeting would be likely to result in the
disclosure of information for which good reason for withholding exists under
section 7.
|
