Minutes of Finance and Performance Committee

Kōmiti 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 Thursday, 17 June 2021 at 10.05am.

present

Chairperson	Cr Desley Simpson, JP
Deputy Chairperson	Cr Shane Henderson	Until 2.21pm, Item C1
Members	IMSB Member Renata Blair	Until 2.47pm, Item C2
	Cr Dr Cathy Casey	From 10.11am, Item 8
	Deputy Mayor Cr Bill Cashmore
	Cr Fa’anana Efeso Collins	Via electronic link Until 11.47am, Item 11
	Cr Pippa Coom
	Cr Linda Cooper, JP
	Cr Angela Dalton	Via electronic link until 12.58pm, Item C1
	Cr Chris Darby
	Cr Alf Filipaina
	Cr Christine Fletcher, QSO	Via electronic link from 12.49pm, Item C1
	Mayor Hon Phil Goff, CNZM, JP	From 11.15am, Item 8; until 2.42pm, Item C1
	Cr Richard Hills	Until 2.28pm, Item C1
	Cr Tracy Mulholland
	Cr Daniel Newman, JP	From 10.41am, Item 8
	Cr Sharon Stewart, QSM
	Cr Wayne Walker	From 11.00am, Item 8
	Cr John Watson	From 10.09am, Item 8
	Cr Paul Young	From 10.12am, Item 8

ABSENT

Members	Cr Josephine Bartley
	Cr Greg Sayers	Absence on council business
	IMSB Chair David Taipari

ALSO PRESENT

Lee Corrick, Chairperson – Albert-Eden Local Board

Izzy Fordham, Chairperson – Aotea/Great Barrier Local Board

Julie Fairey, Chairperson – Puketāpapa Local Board, via electronic attendance

Cath Handley, Chairperson – Waiheke Local Board

Kay Thomas, Chairperson – Whau Local Board, via electronic attendance

Finance and Performance Committee

17 June 2021

1 Apologies

Resolution number FIN/2021/54

MOVED by Chairperson D Simpson, seconded by Deputy Mayor BC Cashmore:

That the Finance and Performance Committee:

a) accept the apology from Cr G Sayers for absence on council business; Mayor P Goff, Cr D Newman and IMSB Chair D Taipari for lateness.

CARRIED

Note: An apology had been received from IMSB Chair D Taipari for lateness, however the meeting had concluded before IMSB Chair Taipari could attend.

Note: Apologies were subsequently received from Cr J Bartley for absence; Cr C Casey, Cr C Darby, Cr A Filipaina and Cr C Fletcher for lateness, on council business; and Cr A Dalton and Cr R Hills for early departure.

Electronic Attendance

Resolution number FIN/2021/55

MOVED by Chairperson D Simpson, seconded by Cr S Henderson:

That the Finance and Performance Committee:

b) approve electronic attendance under Standing Order 3.3.3 for :

· Cr E Collins

· Cr A Dalton

· Cr C Fletcher

CARRIED

2 Declaration of Interest

There were no declarations of interest.

3 Confirmation of Minutes

Resolution number FIN/2021/56

MOVED by Chairperson D Simpson, seconded by Cr S Henderson:

That the Finance and Performance Committee:

a) confirm the ordinary minutes of its meeting, held on Thursday, 20 May 2021, including the confidential section, and the extraordinary minutes of its meeting, held on Tuesday, 25 May 2021 as a true and correct record.

CARRIED

4 Petitions

There were no petitions.

5 Public Input

There was no public input.

6 Local Board Input

There was no local board input.

7 Extraordinary Business

There was no extraordinary business.

8	Presentations from the Auckland Regional Amenities
	Note: changes were made to the original recommendation, adding new clause b), with the agreement of the meeting.
	Richard Pamatatau, Chairperson and Nicola Keen-Biggellar, Chief Executive – Drowning Prevention Auckland addressed the committee. Cr J Watson entered the meeting at 10.09am. Cr A Filipaina entered the meeting at 10.12am. Cr C Casey entered the meeting at 10.12am. Cr P Young entered the meeting at 10.13am. Annabel Holland, Chair; Thomas de Mallet Burgess, General Director; Steffan Sinclair, Director Finance; and Joanne Cole, Director Participation - New Zealand Opera addressed the committee and provided a PowerPoint presentation. A copy has been placed on the official minutes and is available on the Auckland Council website as a minutes attachment. Cr C Darby entered the meeting at 10.37am. Cr D Newman entered the meeting at 10.41am. Victoria Travers, Chief Executive and Richard Sorrenson, Chair of the Stardome Board - Stardome Observatory and Planetarium addressed the committee. Cr W Walker entered the meeting at 11.00am. John Judge – Chairperson; David Inns – Chief Executive/Kaiwhakahaere Matua; and Vanessa Zigliani – Kaiwhakahaere ā-Pakihi, ā-Pūtea/Business & Finance Manager, Auckland Festival Trust provided a PowerPoint presentation. A copy has been placed on the official minutes and is available on the Auckland Council website as a minutes attachment. Mayor P Goff entered the meeting at 11.15am.
	Resolution number FIN/2021/57 MOVED by Chairperson D Simpson, seconded by Cr S Henderson: That the Finance and Performance Committee: a) thank the representatives from Auckland Festival Trust; Drowning Prevention Auckland; New Zealand Opera; and Stardome Observatory and Planetarium for their attendance and the information provided. b) thank the Auckland Regional Amenities Funding Board for their collaborative work with the amenities on behalf of Auckland Council. CARRIED
	Attachments a 17 June 2021, Finance and Performance Committee, Item 8 – Presentations from the Auckland Regional Amenities – Auckland Festival Trust - PowerPoint presentation b 17 June 2021, Finance and Performance Committee, Item 8 – Presentations from the Auckland Regional Amenities – NZ Opera - PowerPoint presentation

24 Upper Municipal Place, Onehunga disposal recommendation

Resolution number FIN/2021/58

MOVED by Chairperson D Simpson, seconded by Cr A Filipaina:

That the Finance and Performance Committee:

a) approve, subject to the satisfactory conclusion of any required statutory processes the disposal for urban renewal purposes of 24 Upper Municipal Place, Onehunga comprised of an estate in fee simple more or less being Part Lot 5 Deposited Plan 42993 contained in computer freehold register 96173;

b) note that sales proceeds will be allocated to the Eke Panuku Transform/Unlock budget and contribute towards projects with public good outcomes for Transform Onehunga; and

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

CARRIED

10	Emergency Budget 2020/2021 - Update June 2021
	A PowerPoint presentation was given, along with the Dashboard. Copies have been placed on the official minutes and are available on the Auckland Council website as minutes attachments.
	Resolution number FIN/2021/59 MOVED by Chairperson D Simpson, seconded by Cr S Henderson: That the Finance and Performance Committee: a) receive the update on progress for financial year 2020/2021. CARRIED
	Attachments a 17 June 2021, Finance and Performance Committee, Item 10 – Emergency Budget 2020/2021 - Update June 2021 - Dashboard b 17 June 2021, Finance and Performance Committee, Item 10 – Emergency Budget 2020/2021 - Update June 2021 - PowerPoint presentation

11	Exploring alternative funding and financing opportunities
	Note: changes to the original motion were incorporated with the agreement of the meeting.
	Cr E Collins retired from the meeting at 11.47am.
	Resolution number FIN/2021/60 MOVED by Deputy Mayor BC Cashmore, seconded by Cr C Darby: That the Finance and Performance Committee: a) agree to support the continued exploration of opportunities for the use of Infrastructure Funding and Financing Act 2020 mechanisms to enable growth infrastructure noting that whilst Drury is the first pilot, other locations and opportunities will be considered and assessed by staff. CARRIED

The meeting adjourned at 12.27pm and reconvened at 12.29pm.

Cr S Henderson was not present.

12	Auckland Council Group Procurement Policy
	Note: changes were made to the original motion amending clause a), and adding new clauses b) and c), as a Chair’s recommendation.
	Cr C Darby tabled a letter that had been signed by Cr C Darby, Cr C Casey, Cr S Henderson, Cr R Hills, Cr P Coom and Cr E Collins and sent to Shane Ellison, Chief Executive Officer – Auckland Transport and Adrienne Young-Cooper, Chair of the Auckland Transport Board, dated 31 May 2021. A copy has been placed on the official minutes and is available on the Auckland Council website as a minutes attachment.
	Cr S Henderson returned to the meeting at 12.32pm.
	Resolution number FIN/2021/61 MOVED by Cr C Darby, seconded by Cr C Casey: That the Finance and Performance Committee: a) approve the Auckland Council Group Procurement Policy for immediate adoption by the council group with the following amendment: Under Principle 4: Act fairly, bullet point three is amended to read: Ethical consideration – behave ethically, adhering to the standards set in the procurement guidelines, declaring any perceived conflicts of interest, comply with international standards of human rights and relevant labour laws in supply chains, and any other relevant internal policies, i.e. Code of Conduct, Gifts and Hospitality Policy etc. b) note that this update of the Auckland Council Group Procurement Policy gives effect to recommendation 64 of the review of Auckland Council’s council-controlled organisations. c) note that group procurement activity is delivering significant procurement benefits for the whole council group including over $65 million for 2020/2021 financial year and this is expected to be exceeded in the 2021/2022 financial year. d) delegate the authority to make minor edits and changes to the Auckland Council Group Procurement Policy to a group comprising the group chief financial officer for council and the chief financial officers of the council-controlled organisations. CARRIED UNANIMOUSLY
	Attachments a 17 June 2021, Finance and Performance Committee, Item 12 - Auckland Council Group Procurement Policy - Letter to Auckland Transport, dated 31 May 2021

Insurance Renewal, Strategy and Progress on Options for Insurance Arrangements

Resolution number FIN/2021/62

MOVED by Chairperson D Simpson, seconded by Cr T Mulholland:

That the Finance and Performance Committee:

a) note that there is a confidential report included in the agenda which contains information on:

i) the proposed indicative group insurance renewal for 2021/2022

ii) the proposed group insurance strategy for the three years commencing 1 July 2021

iii) progress made in identifying and assessing practical options for insurance arrangements to reflect the size and scale of the Auckland Council group.

CARRIED

Summary of Finance and Performance Committee information memoranda and briefings, including the Forward Work Programme - 17 June 2021

Resolution number FIN/2021/63

MOVED by Chairperson D Simpson, seconded by Cr L Cooper:

That the Finance and Performance Committee:

a) receive the progress on the 2021 forward work programme as appended in Attachment A of the agenda report.

b) receive the Summary of Finance and Performance Committee information memorandum and briefings as at 17 June 2021.

CARRIED

Summary of Confidential Decisions and related information released into Open

Resolution number FIN/2021/64

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

That the Finance and Performance Committee:

a) note the confidential decisions and related information that are now publicly available.

CARRIED

16 Consideration of Extraordinary Items

There was no consideration of extraordinary items.

17 Procedural motion to exclude the public

Resolution number FIN/2021/65

MOVED by Chairperson D Simpson, seconded by Cr C Darby:

That the Finance and Performance Committee:

a) exclude the public from the following part(s) of the proceedings of this meeting.

b) agree that Craig Rice, Partner, Partner, PWC and Janelle George, Director PWC be permitted to remain for Confidential Item C1 CONFIDENTIAL: Optimise our service outcomes – maintenance services after the public has been excluded, because of their knowledge of the analysis and negotiations which will help the Finance and Performance Committee in its decision-making.

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: Optimise our service outcomes – maintenance services

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)(h) - The withholding of the information is necessary to enable the local authority to carry out, without prejudice or disadvantage, commercial activities.

In particular, the report contains commercially sensitive information

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: Insurance Renewal, Strategy and Progress on Options for Insurance Arrangements

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)(h) - The withholding of the information is necessary to enable the local authority to carry out, without prejudice or disadvantage, commercial activities.

In particular, the report contains details of the proposed insurance strategy, policies and programme for which terms and costs are being sought and negotiated with the insurance market.

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.

The text of these resolutions is made available to the public who are present at the meeting and form part of the minutes of the meeting.

CARRIED

12.58pm The public was excluded.

Resolutions in relation to the confidential items are recorded in the confidential section of these minutes and are not publicly available.

2.50pm The public was re-admitted.

restatementS

It was resolved while the public was excluded:

C1	CONFIDENTIAL: Optimise our service outcomes – maintenance services
	Note: This item was deferred.

CONFIDENTIAL: Insurance Renewal, Strategy and Progress on Options for Insurance Arrangements

Resolution number FIN/2021/67

MOVED by Chairperson D Simpson, seconded by Cr P Young:

That the Finance and Performance Committee:

a) approve the Auckland Council group’s indicative insurance renewal programme for 2021-2022

b) approve the 2021/2022 to 2023/2024 group insurance strategy

c) note the progress made in:

i) identifying and assessing options for optimising insurance arrangements to reflect the size and scale of the Auckland Council group

ii) the cumulative loss modelling study

d) delegate the final placement of insurance policies for 2021/2022 to the chair of the Finance and Performance Committee and the group chief financial officer by 30 June 2021.

e) agree that the decisions be transferred to the open minutes, but the report and attachments remain confidential.

2.50pm 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:.......................................................