I hereby give notice that an ordinary meeting of the Governing Body will be held on:

 

Date:

Time:

Meeting Room:

Venue:

 

Thursday, 23 November 2023

10.00am

Reception Lounge
Auckland Town Hall
301-305 Queen Street
Auckland

 

Tira Hautū / Governing Body

 

OPEN AGENDA

 

 

 

 

MEMBERSHIP

 

Mayor

Wayne Brown

 

Deputy Mayor

Cr Desley Simpson, JP

 

Councillors

Cr Andrew Baker

Cr Mike Lee

 

Cr Josephine Bartley

Cr Kerrin Leoni

 

Cr Angela Dalton

Cr Daniel Newman, JP

 

Cr Chris Darby

Cr Greg Sayers

 

Cr Julie Fairey

Cr Sharon Stewart, QSM

 

Cr Alf Filipaina, MNZM

Cr Ken Turner

 

Cr Christine Fletcher, QSO

Cr Wayne Walker

 

Cr Lotu Fuli

Cr John Watson

 

Cr Shane Henderson

Cr Maurice Williamson

 

Cr Richard Hills

 

 

(Quorum 11 members)

 

 

 

Sarndra O'Toole

Kaiarataki Kapa Tohutohu Mana Whakahaere / Team Leader Governance Advisors

 

20 November 2023

 

Contact Telephone: (09) 890 8152

Email: sarndra.otoole@aucklandcouncil.govt.nz

Website: www.aucklandcouncil.govt.nz

 

 

 


Governing Body

23 November 2023

 

 

ITEM   TABLE OF CONTENTS            PAGE

1          Ngā Tamōtanga | Apologies                                                   5

2          Te Whakapuaki i te Whai Pānga | Declaration of Interest                                                               5

3          Te Whakaū i ngā Āmiki | Confirmation of Minutes              5

4          Ngā Kōrero a te Marea | Public Input                 5

5          Ngā Kōrero a te Poari ā-Rohe Pātata | Local Board Input                                                            5

6          Ngā Pakihi Autaia | Extraordinary Business     5

7          Presentation from Eden Park Trust Board        7

8          Chief Executive and Group Chief Financial Officer Update                                                     13

9          Category 2P Property Risk Mitigation Scheme                                                                              17

10        Amendment to the Terms of Reference           27

11        Summary of Confidential Decisions and related information released into Open           31

12        Summary of Governing Body information memoranda and briefings (including the Forward Work Programme) - 23 November 2023                                                                      33

13        Downtown Carpark strategic transport outcomes and funding                                       37

14        Te Whakaaro ki ngā Take Pūtea e Autaia ana | Consideration of Extraordinary Items

PUBLIC EXCLUDED

15        Te Mōtini ā-Tukanga hei Kaupare i te Marea | Procedural Motion to Exclude the Public                                               39

C1       CONFIDENTIAL:  Downtown Carpark strategic transport outcomes and funding                      39

 


1          Ngā Tamōtanga | Apologies

 

 

 

2          Te Whakapuaki i te Whai Pānga | Declaration of Interest

 

 

 

3          Te Whakaū i ngā Āmiki | Confirmation of Minutes

 

            Click the meeting date below to access the minutes.

  

That the Governing Body:

a)          whakaū / confirm the ordinary minutes of its meeting, held on Thursday, 26 October 2023, and the extraordinary minutes of its meeting, held on Friday, 27 October 2023, including the confidential sections, as a true and correct record.

 

 

 

4          Ngā Kōrero a te Marea | Public Input

 

 

 

5          Ngā Kōrero a te Poari ā-Rohe Pātata | Local Board Input

 

 

 

6          Ngā Pakihi Autaia | Extraordinary Business

 

 


Governing Body

23 November 2023

 

 

Presentation from Eden Park Trust Board

File No.: CP2023/12487

 

  

 

Te take mō te pūrongo

Purpose of the report

1.       To provide a further:

i)       opportunity for the Eden Park Trust Board (which is partially financed by Auckland Council through an existing loan facility) to present to the Governing Body on its performance and financial projections; and

ii)       update on progress against the resolutions of the Finance and Performance committee from 19 March 2019 (FIN/2019/24, FIN/2019/25, FIN/2019/26 and FIN/2019/27).

Whakarāpopototanga matua

Executive summary

2.       In accordance with resolutions previously made by the Finance and Performance Committee in March 2019, the Eden Park Trust Board (the Trust) will present to the Governing Body.  The Trust’s presentation will cover the following areas: finance update, flood damage, FIFA Women’s World Cup 2023, legacy infrastructure, community engagement, sustainability initiatives and future events.

3.       The balance of the loan facility (Facility) that the Trust has with the council remains steady at $48.5 million.  The loan balance is due 30 September 2029. A waiver for the Trust on its financial covenant relating to the Facility, which was put in place following impacts on the Trust’s revenue during and after COVID-19 restrictions, has now expired and has not been reinstated.

4.       A Development Funding Agreement was executed between council and the Trust in late 2019. A total of $9,797,985 was released to the Trust before 30 June 2022.

5.       Tātaki Auckland Unlimited (TAU) has continued to progress work with the Trust on a single operator model for the city’s four main stadiums, though the work has been slower than anticipated due to several factors. The priority from the council to progress on the single stadium operating model was further confirmed in the 21 December 2022 Letter of Expectation to TAU.

Ngā tūtohunga

Recommendation/s

That the Governing Body:

a)      whakamihi / thank the representatives of the Eden Park Trust Board for their attendance and the information provided on their six-month performance and financial projections.

Horopaki

Context

6.       The Finance and Performance Committee agreed to provide the Trust with funding and financing on 19 March 2019 (Resolutions FIN/2019/24, FIN/2019/25, FIN/2019/26 and FIN/2019/27) 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.

7.       In accordance with resolution d), representatives of the Eden Park Trust Board will attend the meeting. Their last appearance before the Governing Body was on 23 March 2023 (in a confidential session).

Update on implementation of previous resolutions

Resolution a) Loan facility

8.       On 30 September 2019, the council took over ASB Bank loans and facilities held by the Trust by paying ASB Bank $40 million (the par value of all amounts outstanding from the Trust to ASB Bank as at 30 September 2019) and consolidating $6.5 million of existing council loans into one $54 million revolving facility with a drawn loan balance of $46.5 million. The council also took over ASB’s first ranking mortgage securities over the Trust’s land and continues to hold first ranking mortgages as security for the Facility.

9.       In September 2020 council agreed to grant the Trust a waiver on its financial covenant relating to the Facility from council until 31 January 2021. The financial covenant states that the ratio of EBITDA (earnings before interest, tax, depreciation and amortisation) to interest for the financial year in question will be equal to or greater than 1:1. The waiver is similar to what other lenders have agreed to in similar situations where the revenue of a business has fallen significantly due to the impacts of COVID-19, and was granted due to the impact that COVID-19 was having on the Trust’s business (mainly in the form of reduced revenue). The impact of COVID-19 was making it highly possible that the Trust would be unable to meet this covenant.

10.     Since that time, the council has agreed to extend the waiver three times on the same grounds as the initial waiver. The most recent of these follows a request from the Trust on 20 May 2022 (agreed 24 May 2022) for a further extension from 1 November 2022 through to 31 October 2023, due to ongoing uncertainty over COVID-19 lockdown restrictions on their activities. This waiver has now expired and has not been reinstated.

11.     The Trust’s Facility loan balance as at 19 October 2023 was $48.75 million, as it was at the end of August 2022 and March 2023. The maximum amount that may be borrowed under the Facility at any point in time is $54 million. The Trust continues to pay interest on the Facility.  The loan balance is due 30 September 2029.

 

 

 

 

12.     The Trust made a submission to the draft Annual Budget 2022/2023 requesting $6.28 million of grant funding for the 2022/2023 financial year and the same amount each year for a further nine years ($62.8 million in total). The Governing Body declined that request at its 23 June 2022 meeting and resolved to forgive interest payments until 30 June 2023 on any additional Facility drawdown by the Trust whilst the Trust and the council group, through TAU, continue to work on a single-stadium operating model for the city’s stadiums (GB/2022/56).

13.     To date, there have been no additional Facility drawdowns under this arrangement.

Resolution b) Funding

14.     A Development Funding Agreement was executed with the Trust in late 2019. A total of $9,797,985 was released to the Trust before 30 June 2022 in accordance with the development funding agreement for a new turf and protection and maintenance equipment; a video replay screen; turnstiles and hand scanners; cyber security; point of sale; entry-point LED screens for public notifications; and electrical, facilities, lifts, and stadium lighting upgrades.

15.     The Trust has advised that all projects have been completed.

Resolution c) Operational Partnering Proposal and resolution e) Governance:

16.     The CCO review findings were released in August 2020. The recommendations included a merger of Regional Facilities Auckland Limited (RFAL) and Auckland Tourism, Events and Economic Development (ATEED) and that “The merged entity explores, at the council’s direction, the critical need for joint management and operation of the city’s four stadiums with the Eden Park Trust.”

17.     A confidential workshop was held on 7 July 2021 with the CCO Oversight Committee to discuss how TAU should progress work with the Trust and on stadiums. A further three confidential workshops have been held (September and December 2021 and May 2022) to provide progress updates with the work programme and seek feedback on key aspects.

18.     TAU has continued to progress this work with the Trust though the work has been slower than anticipated due to several factors. The priority from the council to progress on the single stadium operating model has been further confirmed in the 21 December 2022 Letter of Expectation to TAU.

19.     TAU is also continuing to engage with wider stakeholders including sports, concerts, festival and community users.

Resolution d) the trust reporting to Finance & Performance Committee:

20.     The Trust continues to comply with the reporting obligations to the council, including their quarterly compliance reports.

21.     In accordance with resolution d), the Trust previously presented to the Finance and Performance Committee in a confidential session on 23 March 2023.  Their 2021/2022 annual report was received by council at this meeting. 

22.     Representatives of the board will present to the Governing Body at this meeting. This reporting is to continue on at least a six-monthly basis.  The subjects the Trust will present on include; a finance update, flood damage, FIFA Women’s World Cup 2023, legacy infrastructure, community engagement, sustainability initiatives and future events.

23.     Prior to the meeting, council finance staff will consider the presentation and raise any risks or issues with the Governing Body at the meeting.

 


 

 

Tauākī whakaaweawe āhuarangi

Climate impact statement

24.     There are no direct climate impacts or implications for delivering climate actions as a result of receiving the presentation from the Eden Park Trust Board.

25.     Eden Park has a range of sustainability initiatives operative at the stadium, including collecting and treating rainwater on-site and using it to water the field, rubbish separation, compostable packing, replacing all sports and emergency lighting with LED products, onsite composting and beehives.

Ngā whakaaweawe me ngā tirohanga a te rōpū Kaunihera

Council group impacts and views

26.     TAU is continuing to progress a single stadium operator model with the Trust as requested by the Governing Body and outlined in the 21 December 2022 Letter of Expectation. It is considered that a single stadium operating model will improve the operational performance of the stadium network, increase overall revenues, and provide efficiencies that will ultimately reduce the impact on ratepayer funding.

Ngā whakaaweawe ā-rohe me ngā tirohanga a te poari ā-rohe

Local impacts and local board views

27.     Receiving regular reporting from Eden Park Trust Board is a responsibility of the Governing Body (resolutions FIN/2019/24, FIN/2019/25, FIN/2019/26 and FIN/2019/27).  No decisions are required. As such the views of local boards have not been sought on the content of this report.

Tauākī whakaaweawe Māori

Māori impact statement

28.     The decision to receive the presentation from the Eden Park Trust Board does not have direct impacts on Māori.  Views from, and engagement with Māori, has not been sought.

29.     Eden Park hosted the Te Matatini Herenga Waka Festival in February 2023 and in May 2023 signed a kōtuitanga, a shared agreement between Ngāti Whātua Ōrākei and Eden Park. 

Ngā ritenga ā-pūtea

Financial implications

30.     As outlined earlier in this report, the Trust’s current Facility loan balance as at 19 October 2023 was $48.75 million, as it was at the end of August 2022 and March 2023. The maximum amount that may be borrowed under the Facility at any point in time is $54 million. The Trust continues to pay interest on the Facility.  The loan balance is due 30 September 2029.

Ngā raru tūpono me ngā whakamaurutanga

Risks and mitigations

31.     There are no significant risks arising from the Governing Body receiving the presentation from the Eden Park Trust Board on their six-monthly performance.

Ngā koringa ā-muri

Next steps

32.     The Eden Park Trust Board will next present to the Governing Body in March 2024.

 

 

Ngā tāpirihanga

Attachments

There are no attachments for this report.     

Ngā kaihaina

Signatories

Author

Sarah Johnstone-Smith - Principal Advisor

Authorisers

Alastair Cameron - Manager - CCO Governance & External Partnerships

Anna Bray - Acting Director - Governance and CCO Partnerships

Phil Wilson - Tumu Whakarae / Chief Executive

 

 


Governing Body

23 November 2023

 

 

Chief Executive and Group Chief Financial Officer Update

File No.: CP2023/16732

 

  

 

Te take mō te pūrongo

Purpose of the report

1.       To provide a monthly update to the Governing Body on key matters from the Auckland Council Chief Executive and Group Chief Financial Officer as at 31 October 2023.

Whakarāpopototanga matua

Executive summary

Chief Executive and Group Chief Financial Officer’s Update

2.       Phil Wilson, Chief Executive and Peter Gudsell, Group Chief Financial Officer (GCFO) will provide a summary of highlights and key activities and updates for the following:

·    Government relationships and reform

·    Service performance

·    Moody’s credit rating affirmed

·    Long-term Plan (LTP) update

·    Financial performance for Auckland Council and the Auckland Council Group

·    Economic/market update.

Government relationships and reform

3.       Staff are finalising feedback on the engagement draft of the transitional National Planning Framework (NPF). It is a ‘transitional’ NPF as it intends to carry over the policy intent of existing Resource Management Act (RMA) national direction and includes new direction to support the development of the first regional spatial strategies (RSS). The Ministry for the Environment has advised that further engagement has been paused until clear direction is provided by the new government. Staff will make a technical submission on behalf of the Auckland Council group. Once the Government is in a position to make decisions on this work programme, the council will have another opportunity to provide feedback / input through the Planning, Environment and Parks Committee.

4.       Council lodged its submission to the Parliamentary Inquiry into Community-led Retreat and Adaptation Funding. The findings of this inquiry were intended to support the development of the Climate Adaptation Bill although the future of this third piece of legislation is uncertain.

5.       Staff are finalising council’s submission on a new National Policy Statement on Natural Hazard Decision-making (NPS-NHD). It is an interim tool (under the RMA) to guide plan changes and resource consent decision-making for new developments.  The NPS-NHD and inquiry into community-led retreat and adaptation funding were intended to shape more comprehensive national direction for natural hazards for the new RM system.

Moody’s credit rating affirmed

6.       Moody’s Investor Services have affirmed Auckland Council’s issuer credit rating of Aa2 on “Stable” outlook.

7.       The rating reflects the council's well established local government institutional framework that allows for the flexibility to deliver a strong operating performance through adjustments to revenues (rates, fees and charges) and spending decisions, while ensuring strong governance practices (including adherence to its reporting and planning requirements and audit controls).

8.       Moody’s note that the council has benefited from a fundamentally sound economic profile and its close alignment with the Crown as part of its mature institutional framework. In particular, the ongoing strength of this relationship was amply demonstrated by the joint response to the Auckland Anniversary weekend flood and Cyclone Gabrielle earlier in 2023.

Long-term Plan process 2024 - 2034

9.       Work on the Long-Term Plan 2024-2034 (LTP) is continuing as we move towards a mayoral proposal and decision-making on items for consultation.

10.     Work has included the development of initial investment options for Auckland Council including community, natural environment, and storm water options. We have also looked at Auckland Transport investment options and Watercare’s investment and funding requirements.

11.     Workshops on climate risks disclosure and funding for local boards have been completed.

12.     Ongoing discussions with Audit NZ about the information and processes required for the LTP will continue. It is clear there will be pressure across the group to meet constrained timelines, including the need for contingency planning, associated with potential changes to scenarios related to government water reform and the regional fuel tax – particularly given the ongoing uncertainty in the formation of a new government.

Financial performance for Auckland Council and the Auckland Council Group

13.     The monthly financial dashboard for Auckland Council and the Auckland Council Group was not available at the time the agenda was due for release and will be made available prior to the meeting. A summary of the key highlights and results will be provided by the Group Chief Financial Officer at the meeting.

Economic/ market update

14.     Key economic/ market activity and updates are:

·        Annual inflation rate – Consumer Price Index was 5.6 per cent at end of September 2023 (updated quarterly, next due 24 January 2024).

·        Non-tradable inflation was at 6.3 percent for the year to September 2023. Non-tradables are goods and services that do not face foreign competition and are an indicator of domestic demand and supply conditions. (Updated quarterly, next due 24 January 2024)

·        Unemployment rate – 3.9 per cent to the end of October 2023, an increase of 0.3 per cent on the previous quarter (updated quarterly, next due 7 February 2023).

·        Gross Domestic Product increased by 0.9 per cent in the June 2023 quarter, bringing annual growth to 3.2 per cent (next update is 14 December 2023)

·        Auckland new dwellings consented numbers – 17,079 for the year ended September 2023 (22 per cent lower than the year ended September 2022).

·        The Official Cash Rate (OCR) rate remained at 5.5 per cent on 16 August 2023 (next update is 29 November 2023)

·        International migration (national level) – net gain of 110,200 people for the 12 months to August 2023, comprising 225,400 arrivals and 115,100 departures (provisional estimates, subject to revision)

Ngā tūtohunga

Recommendation/s

That the Governing Body:

a)      whiwhi / receive the information provided in this report, in the monthly financial dashboard circulated prior to the meeting and the verbal updates by the Chief Executive and Group Chief Financial Officer.

 

Ngā tāpirihanga

Attachments

There are no attachments for this report.     

Ngā kaihaina

Signatories

Authors

Karuna Dahya - Manager Group Performance Reporting

Lisa Tocker - Executive Officer

Kerri Foote - Executive Officer : CFO Division

Authorisers

Peter Gudsell - Group Chief Financial Officer

Phil Wilson - Tumu Whakarae / Chief Executive

 

 


Governing Body

23 November 2023

 

 

Category 2P Property Risk Mitigation Scheme

File No.: CP2023/17224

 

  

 

Te take mō te pūrongo

Purpose of the report

1.       To agree the proposed arrangements for the new Category 2P Property Risk Mitigation Scheme noting that the new service is expected to cost approximately $350,000 over three financial years to deliver, and that the costs will be absorbed within existing budgets to the extent possible.

Whakarāpopototanga matua

Executive summary

2.       On 26 October, the Governing Body agreed to implement a new service to fund Category 2P property interventions, with a feasible cost indicator of up to 25 per cent of capital value, as part of the council’s Storm Recovery programme [GB/2023/208]. This report presents the proposed support scheme design.

3.       It is proposed to operate the service as a grant scheme, where the council offers a fixed sum of money to support Category 2P property owners to make risk mitigation improvements to their homes. The amount of the grant will be determined based on the costs of the improvements, up to a maximum of 25 per cent of the Capital Value (CV) of the property (as at 26 January 2023).

4.       The proposed process includes two key stages. First, a design and consenting grant to support property owners to fully scope, design and gain resource and building consent approvals to confirm the feasibility and scope of the works. Second, a construction grant to support property owners to carry out the mitigation solutions on their properties. With 100 to 120 homes likely to be eligible for the Category 2P grants support scheme, the total amount of grants disbursed is estimated to be in the range of $20 - $30 million.

5.       That cost will be shared with the crown, through the co-funded Storm Recovery package. A new council service to support the implementation of the scheme is unbudgeted.  While further scoping work is required to confirm resource requirements, it is estimated that administering the scheme will cost approximately $350,000 over three financial years. This cost will be absorbed within existing budgets to the extent possible.

6.       Funding for Category 2P projects is currently allocated through the Risk Mitigation portion of the Crown Funding Agreement. Staff are in discussions with the crown to potentially amend the agreement, to enable Category 3 funding to be used for Category 2P mitigation interventions.

 

Ngā tūtohunga

Recommendation/s

That the Governing Body:

a)      whakaae / approve the key elements of the Category 2P Property Risk Mitigation Scheme, as set out in paragraphs 14 - 28 of the agenda report

b)      tautapa / delegate to the Chief Executive the power to finalise the Scheme documentation and rules of the Category 2P Property Remediation Scheme, in accordance with Auckland Council’s policies and resolutions and subject to any confirmation of possible Crown co-funding arrangements noting that these decisions will need to be taken through the Crown funding agreement process.

c)       whakaae / approve council funding for the Category 2P Property Risk Mitigation Scheme from budget currently allocated for the council’s contribution to the Storm Recovery co-funding agreement;

d)      tono / request staff to continue negotiations with the government Cyclone Recovery Office and Crown Infrastructure Partners to make possible amendments to the Crown Funding Agreement to enable Category 3 funds to be applied to Category 2P mitigation interventions.

e)      tuhi ā-taipitopito / note administering the new service is estimated to cost approximately $350,000 over three financial years.

 

Horopaki

Context

7.       Auckland Council has negotiated a co-funded storm recovery package with the Crown to respond to the Auckland Anniversary Weekend and Cyclone Gabrielle severe weather events.  The package is valued at just under $2 billion with $1.1 billion coming from government and $900 million from Auckland Council. The three components of the package are transport network recovery, Category 3 buy-out and risk mitigation projects.

8.       The process is ‘locally-led and centrally-supported’ – with the methodology and parameters for the package to be developed by Auckland Council.  Auckland Council’s clear position is that the approach that has been proposed by the government is a one-off and does not set a precedent for future responses. The council is strongly advocating to central government to establish national schemes to support recovery from future events, and to support managed retreat in advance of disaster.

9.       On 6 October 2023, the Governing Body made key policy decisions on land categorisation methodology and scheme rules for the buyout of Category 3 properties to progress the Crown’s proposal to co-fund a storm recovery package for Auckland [GB/2023/187]. 

10.     On 26 October 2023, the Governing Body agreed to establish a new one-off council administered scheme and service to fund Category 2P property interventions (based on an agreed cost estimate for each intervention) [GB/2023/208].

11.     Category 2P residential properties are defined as having:

·   an intolerable risk to life from land instability or flooding risk; and

·   feasible property-level mitigation solutions that would reduce that risk to tolerable levels.

10.     On 26 October 2023, the Governing Body agreed that feasible property-level interventions would be defined as:

·   an intervention that is estimated to cost 25% or less of the CV of the property; and

·   can reasonably be expected to be able to be delivered within two years of the categorisation decision.

11.     The information presented to the Governing Body identified that Category 2P interventions could:

·   enable more whānau to stay in their homes and communities

·   reduce the environmental impact of demolishing or deconstructing buildings

·   be more cost effective for the ratepayers and council than voluntary Category 3 buy-outs.

12.  Staff were asked to prepare a report for the Governing Body on how the scheme and service will be implemented.


 

 

Tātaritanga me ngā tohutohu

Analysis and advice

Policy intent

12.     Auckland Council’s overarching policy objective for the Category 2P Property Risk Mitigation Scheme is to support Aucklanders to remove the intolerable risk to life posed by some residential properties due to the severe weather events.

13.     This is complementary to the Category 3 Voluntary Buy-out Support Scheme, which seeks to voluntarily relocate people from situations of intolerable risk, where that risk cannot be feasibly mitigated.

Overview of the proposed scheme

14.     In situations where a residential property affected by the January and February 2023 severe weather events is determined to be Category 2P, it is proposed that the council offers the property-owner a grant to support them to reduce the property’s risk to a tolerable level. Around 100 to 120 residential properties are expected to be in this category.

15.     The grant would be provided for specified works to feasibly reduce risk to life from flooding or land slips. This could include interventions such as raising or shifting homes, strengthening foundations, redirecting overland flowpaths, and building retaining walls. It would not cover works that are not related to risk mitigation. 

16.     The value of the council grant would be for the total cost of the specified works, to a maximum value of 25% of the CV of the property, as at 26 January 2023. If, in the design and consenting phase, the total cost is determined to be more than 25%, the council and property owner would discuss options, including to recategorise the property to Category 3 and enter into a voluntary buy-out, or to remain as Category 2P and have the homeowner take responsibility for the additional costs.

17.     Homeowners would bear the responsibility for obtaining professional advice, any necessary resource and building consents, project management, and any cost overruns, as they would do in any normal renovation project.

18.     Grant funding would be released in two stages and would follow a progressive payment schedule, as agreed with the council. The two grants are:

·   a design and consent grant to support homeowners to obtain the necessary technical advice and consents and confirm project feasibility

·   a construction grant with progressive payments to support homeowners to implement the identified and consented solutions.

19.     Recognising the potential for highly variable circumstances for each property, similar special circumstances and disputes resolution processes would apply to the Category 2P Property Risk Mitigation Scheme as are already in place for the Category 3 Voluntary Buy-out Support Scheme.

Key elements of the scheme

20.     Role of the homeowner: the homeowner will undertake the improvements, including sourcing contractors to provide professional advice and building services. Project management services could be built into the total cost of the grant (up to the 25% threshold) to support property owners who may find implementation challenging.

21.     Role of the council: the council will provide a grant in support of homeowners’ efforts. Auckland Council will not be liable for completion of the works, or for any cost overruns. Council will also continue its normal regulatory and compliance roles.

 

22.     Cross-boundary situations: the intolerable risk to life on some properties can be mitigated through works on neighbouring properties, for example building retaining walls on higher land. The legal requirements in such a situation are complex, requiring neighbour agreement for the work to proceed, cost allocation, and commitment to ongoing maintenance where necessary. There is no simple process to achieve neighbour agreement, with civil litigation a possible pathway. For this reason, staff are proposing to treat such instances as Category 3 properties, even where the mitigation is financially feasible. In situations where property owners can demonstrate that they have the necessary neighbour permissions, they can seek recategorisation to Category 2P.  

23.     Insurance: insurance payments that could be applied to the mitigation works will be netted off the grant funding.

24.     Recategorisation: If, in the course of scoping the specified works, the cost of the interventions exceeds the 25% value and the property owners are not able or prepared to pay for any additional cost, then the property would be recategorised as Category 3 and a voluntary buy-out offer made. Once a works grant contract is signed to proceed with implementing a 2P intervention, the home will not be able to be recategorised.

25.     Retrospective works: If the property is categorised as Category 2P and property owners have commenced works on an intervention that is supported by the council as effective in reducing risk to a tolerable level, these could be considered for a retrospective grant with the appropriate documentation.

26.     Use of CV to calculate maximum value of grant: the categorisation and the scheme will both rely on the Capital Value of the property as at 26 January 2023, as registered in the Auckland Council rates database (value set a 1 June 2021). The approach was approved by the Governing Body as it provides the most efficient and cost-effective mechanism to determine whether an intervention is feasible.

27.     Confirmation of feasibility: the initial estimate of feasibility will be made through the council’s categorisation process. After further detailed design is developed in the scoping phase, the council will re-confirm that the proposed interventions still meet the feasibility criteria before the construction grant is approved.

Implementation stages

28.     Implementation of the scheme would follow four main stages:

a)  Categorisation: Homeowners have their property assessed as part of the council’s categorisation process. The risk and feasibility assessments identify the property as Category 2P – having intolerable risk to life, and a feasible mitigation solution that is estimated to be no more than 25% of the property value and achievable within two years. Homeowners are informed of the categorisation and can opt to proceed to the next phase.

b) Scoping, design and consenting: After initial discussion with the council about the grants process, the homeowner obtains quotes for the design and consenting phase of works. They then submit a design and consenting grant application using the council’s Smarty Grants system, for the value of the design and consent works.

The council evaluates and approves the release of the grant, for a specified amount for engineering and design advice based on quotes and for the cost of resource and building consents.

Design and consenting work is then progressed by the homeowner and their consultants. Auckland Council is offering an express service for consents related to flood and land slip repairs. This means applications will be allocated for processing immediately. The time to process the consent will still depend on the complexity of the works proposed, and the quality of the application (e.g., if further information is required). 

At the end of this stage, the homeowner should have obtained all necessary technical advice and consents and have a quote for the works.

 

 

c)  Allocating the grant: The information from the previous phase is brought back to the council for evaluation to ensure the project is still feasible and meets the conditions of the grant. The homeowner then submits a construction grant application for the cost of the works, up to a maximum value of 25% of the property CV (including the value of the design and consenting grant already disbursed). Where the total costs exceed 25% of CV, there is provision for recategorisation or for the property owner to make a financial contribution to meet the extra cost.

d) Implementing the works: The homeowner’s contractors proceed with the works. Regular consent inspection processes will apply. Payments will be released on a progressive basis, as milestones are achieved. Once the works are certified as completed to a satisfactory standard, the final grant payment is made and the LIM notice that has been applied to the property, is lifted.

 

Options analysis

29.     Staff have considered three options for the design of the grants scheme, described here as high, medium, and light touch. The implications of each option for Auckland Council and property owners is outlined in Table 1. Under the high-touch approach, the council would take an active role in designing mitigation solutions, procuring contractors to deliver works, and having a high level of control over the payments process.

30.     Under the medium-touch approach, the council would have a higher level of involvement at the start of the process, to ensure the scope of works and designs are feasible. The homeowner would be fully accountable for implementation. The council would administer progress payments but keep administration to minimal levels. This is the option recommended by staff.

31.     Under the light-touch approach, the council would agree the scope of works through the contract and provide the grant and have minimal involvement beyond that.

32.     In all options, the council would provide the express consenting process.

Table 1. Options assessment

 

Option 1: High touch

Option 2: Medium touch

Option 3: Light touch

Implications for Auckland Council

•     High control over outcomes

•     Higher liability for results

•     High administrative cost

•     Higher risk of dispute with property-owners

•     Well-informed decisions at start of grant process

•     Lower liability for result

•     Moderate administration cost

 

·    Less control over outcomes

·    Low liability for results

·    Low administrative cost

·    Higher risk of non-completion of works

 

 

 

Implications for property owners

•     Risk of dissatisfaction with council-delivered interventions

•     Less control over decisions that affect their property

•     Well-supported by the council to scope works and understand what is required

•     Property-owners may be dissuaded by level of risk involved (e.g. liability for cost overruns)

•     High level of control over decisions, with accountability requirements to report on expenditure to access progress payments

·    Limited support from the council

·    High level of control over decisions

·    Higher risk of non-completion (lack of incentive to make progress through progress payment structure)

 

Tauākī whakaaweawe āhuarangi

Climate impact statement

33.     Te Tāruke-ā-Tāwhiri: Auckland’s Climate Plan sets a number of priorities for action on climate adaptation, including addressing immediate, known risks that are affecting Aucklanders today.  

34.     Implementation of the co-funded storm recovery package will support Auckland’s climate adaptation, through improving the resilience of communities and infrastructure, and removing people from intolerable risks to life from climate-related natural hazards. 

35.     The Category 2P scheme will enable homes to be repaired, made more resilient to severe weather events, and continue to be lived in. This is an efficient use of resources, avoiding the significant waste associated with demolition of homes.

Ngā whakaaweawe me ngā tirohanga a te rōpū Kaunihera

Council group impacts and views

36.     The methodology to support the co-funded storm recovery package has been developed by staff from across the council group, including the Recovery Office, Chief Executive’s Office, Chief Planning Office, Finance, Legal, Healthy Waters, Resilient Land and Coasts, Regulatory, and Eke Panuku Development Auckland. 

37.     Implementation will follow a similar coordinated approach across the council group.

 


 

 

Ngā whakaaweawe ā-rohe me ngā tirohanga a te poari ā-rohe

Local impacts and local board views

38.     There has been no specific consultation with Local Boards on the elements of this scheme.  However, most local boards provided feedback on the Crown offer and the methodology of the Voluntary Buy-out Support Scheme.  Feedback was reported to the Governing Body on 6 October 2023 [GB/2023/187]. Common themes relevant to the consideration of Category 2P properties included:

·   the need to provide certainty and support to affected property owners

·   the huge impact that the severe weather events have had on local communities and individual families

·   ensuring that any council approach is fair and equitable

·   the impacts of rates rises.

39.     The council has also received correspondence from affected property owners seeking clarity on the council’s approach to 2P properties and advocating for some form of council support to assist property owners to undertake any feasible property level interventions. A presentation was provided to the Governing Body by Piha Karekare Anawhata representatives specifically on support required for Category 2P properties. Key messages included:

·   supporting property owners to return to their homes

·   insurance and EQC payments will not be enough to pay for repairs

·   homeowners will not be able to fund interventions on their own

·   reduce red tape and consent costs.

Tauākī whakaaweawe Māori

Māori impact statement

40.     Māori are among the affected property owners and will benefit from the proposed package of Category 3 and Category 2P supports. A separate process for whenua Māori is being led by the Crown, outside of the council’s categorisation process.   

41.     Feedback from mana whenua has included describing the anxiety and stress for whānau as a result of the storms and uncertainty about the pathway to recovery. As part of developing the Tāmaki Makaurau Recovery Plan, officers are working with mana whenua to develop improved engagement processes moving forward. 

Ngā ritenga ā-pūtea

Financial implications

42.     Auckland’s recovery from the severe weather events of early 2023 is going to require significant investment. The co-funding package increases the total investment into Auckland, with over $1 billion in new and reprioritised central government funding.

43.     From a financial perspective, the estimated total cost of Category 2P interventions is significantly below the estimated buy-out cost of the properties. Each property assessed as having a feasible intervention, and therefore categorised as Category 2P, is one less property that is part of the voluntary buy-out scheme. This will have the effect of enabling more people to stay in their homes and communities and reducing the impact on ratepayers.

44.     Assuming 100-120 property interventions are implemented via the grant scheme, the total grant funding allocated is expected to be around $20 to $30 million over two to three years.  The cost to run the scheme is estimated at $350,000 over three financial years (from December 2023 to December 2025).

 

 

45.     The funding agreement with the Crown sets separate parameters for funding available for Category 3 home buy-out and funding available for risk reduction programmes.

46.     Recovery Office, legal and finance staff are in discussion with the Cyclone Recovery Office to re-negotiate the terms of the crown funding package, with a view to providing greater flexibility within the overall package to access funds earmarked for Category 3 properties where it is possible to categorise those properties as Category 2P. This could enable an overall reduction in the total funding required to respond to the severe weather events while also providing a better outcome for whānau who wish to stay in their homes and communities.

47.     If it is not possible to renegotiate the funding agreement, crown funding for risk reduction programmes is a pre-allocation from the National Resilience Plan fund (subject to business case approval).  If Category 2P funding needs to come from this allocation, it could slow down implementation of Category 2P interventions and reduce the amount of funding available for other risk reduction programmes, including elements of Making Space for Water.

Budget allocation for new scheme service

48.     The Category 2P Property Risk Mitigation Scheme is a new service, and will require systems to support:

·   grant administration and disbursement of funds

·   management of the scheme and assessment of applications, including technical assessment to ensure the intervention will be effective        

·   advice from a range of subject matter experts, including finance, legal and regulatory

49.     Much of the administration can be undertaken through normal council processes, including any resource consent and building consent applications, site monitoring and certification of completed works.

50.     Assuming 100-120 property interventions are implemented via the grant support scheme, the total grant funding allocated is expected to be around $20 to $30 million over two to three years.  The cost to run the scheme is estimated at $350,000 over three financial years (from December 2023 to December 2025). The Recovery Office will endeavour to absorb this cost.

51.     Further discussion is required with the Crown to finalise details for the co-funding arrangements.

Ngā raru tūpono me ngā whakamaurutanga

Risks and mitigations

52.     The risks associated with the co-funding package, in particular the buy-out scheme, are significant and were reported in detail to the Governing Body on 6 October 2023 [GB/2023/187]. 

53.     Risks relating to the provision of the Category 2P service are set out in Table Two.


 

 

Table Two: Risks and mitigations

Risk

Mitigation

Funding may not be available or sufficient

·    Funding for Category 2P interventions is currently subject to business case approval via the National Resilience Plan.

·    Funding Category 2P interventions could mean there is insufficient funding to implement community-level risk mitigation projects, such as Making Space for WaterStaff are in discussion with central government to use Voluntary Buy-out Support Scheme funding to support property level interventions for Category 2P properties.

Property interventions may be more complex or expensive than anticipated

If the infeasibility is identified during the scoping stage, the property could:

·    Proceed to the construction grant subject to the homeowner committing to fund the costs above the maximum grant eligibility

·    Be re-categorised as category 3

If complications emerge after the grant is in place, the grant agreement will have specified that the homeowner is liable for any cost overruns.

Property owners choose not to proceed with construction after they have received the design and consent grant

·    If the cost of the intervention is above 25% of CV, the property would be recategorised as Category 3. The council could purchase the property and on-sell it with consents for repairs in place.

·    If the cost of the intervention is below 25% of CV, the property owner could opt out of the process. This will not achieve the council’s policy objective of removing intolerable risk to life. However, having any necessary resource and building consents in place will be a step towards the desired outcome, and will be on file should the owners decide to on-sell. 

Property interventions not completed

Progress payments will encourage movement towards completion.

Any underspend will be expected to be repaid.

Categorisation will remain on the LIM until remediation is in place or be replaced with a risk rating on 1 July 2025.

Property interventions may not be effective

Feasibility assessments at the scoping stage, through the resource consent and building consent applications, and in evaluation of the grant will provide a level of confidence that the works will be effective.

The funding agreement specifies that a property cannot be recategorised as Category 3 if an intervention is implemented but is not effective.

Further severe weather events occur before risk mitigation interventions are complete

The council will work with affected homeowners and central government to resolve situations on a case by case basis.

 

Ngā koringa ā-muri

Next steps

54.     Subject to approval, the Recovery Office will stand up the systems and resourcing needed to support implementation of the Category 2P Property Risk Mitigation Scheme with the support of the Auckland Council Group.  

55.     Technical assessment of storm-impacted properties continues, with properties beginning to move to the categorisation step and, where relevant, the buy-out and category 2P processes. 

56.     The decisions made in this report will be communicated to the public.  A Category 2P Handbook will also be prepared to guide impacted property owners through the process.

57.     The Recovery Office will continue to implement and grow the navigation service available to assist impacted homeowners through the categorisation and buy-out process.  

58.     Staff are in discussions with the Cyclone Recovery Office and Crown Infrastructure Partners to investigate whether the Crown Funding Agreement to enable Category 3 funding to be used for Category 2P property interventions.

 

Ngā tāpirihanga

Attachments

No.

Title

Page

a

Draft Category 2P Property Risk Mitigation Scheme Terms

 

     

Ngā kaihaina

Signatories

Authors

Mace Ward - Deputy Group Recovery Manager

Megan Howell - Programme Manager

Tanya Stocks - Recovery Office Strategic Support

Authorisers

Mat Tucker - Group Recovery Manager

Phil Wilson - Tumu Whakarae / Chief Executive

 

 


Governing Body

23 November 2023

 

 

Amendment to the Terms of Reference

File No.: CP2023/16932

 

  

 

Te take mō te pūrongo

Purpose of the report

1.       To update the Governing Body Terms of Reference to reflect the change to the membership of the Joint Governance Working Party.

Whakarāpopototanga matua

Executive summary

2.       The mayor has the power to establish committees; appoint chairs and deputy chairs; and setup political working parties.  The Governing Body gives effect to the committees by delegating responsibilities and powers in the Terms of Reference. 

3.       The Terms of Reference include the roles, responsibilities, and membership of the committees and political working parties of the Governing Body.

4.       The terms are subject to change to reflect changes in committee structure or requests from elected members, committee chairs on the membership of the committee and political working parties and approved by the mayor.

5.       At the Governing Body meeting of 26 October 2023 which requested the Joint Governance Working Party (JGWP) undertake work to determine appropriate arrangements for Māori representation, Councillor Leoni requested that a member of the Independent Māori Statutory Board join the JGWP. This was welcomed and agreed to by the mayor.

6.       The Chair of the JGWP has written to the Independent Māori Statutory Board (IMSB) to request the IMSB nominate a member of their board to join the JGWP as a co-opted member, pending the Governing Body considering the changes to the JGWP Terms of Reference to enable a full representative.

7.       The proposed amendments to the terms are to reflect that change, to the membership of the Joint Governance Working Party.

 

Ngā tūtohunga

Recommendation/s

That the Governing Body:

a)      whakaae / agree the nomination of an Independent Māori Statutory Board member to the Joint Governance Working Party.

b)      whai / adopt the amendments contained in the current Governing Body Terms of Reference in Attachment A of the agenda report and delegate those powers and responsibilities as listed.

Horopaki

Context

8.       The Terms of Reference implement the committee structure established by the mayor. By adopting the Terms of Reference, the Governing Body is delegating the appropriate responsibilities and powers to, and setting quorums for, the committees and political working parties established by the mayor.

9.       On 26 October 2023 the Governing Body requested the JGWP undertake work to determine appropriate arrangements for Māori representation on Auckland Council (Resolution GB/2023/195) and report back to the Governing Body by 31 December 2024.

10.     At the Governing Body meeting Councillor Leoni requested a member of the IMSB to join the JGWP. This was welcomed and agreed to by the mayor and the chair and deputy chair of the JGWP.

11.     To give effect to the mayor’s direction, the Terms of Reference will be amended to reflect the change to the membership of the JGWP. 

Tātaritanga me ngā tohutohu

Analysis and advice

12.     The proposed change to the Terms of Reference is included as Attachment A to this report. The addition to the membership of the JGWP is shown in red and underline (insert) page 39.

13.     The terms of reference manage operational, logistical, and legal factors to ensure the right allocation of responsibilities across the established structure.

14.     Changes to membership and key roles have more of a political implication, rather than procedural or operational and the change in membership of a working party has no procedural or operational issues.

15.     The working party does not have designated decision-making powers but reports its findings back to the local boards and the Governing Body.

Tauākī whakaaweawe āhuarangi

Climate impact statement

16.     The proposed change of membership to a political working party does not have an impact on climate change.

Ngā whakaaweawe me ngā tirohanga a te rōpū Kaunihera

Council group impacts and views

17.     The change of membership to a political working party is a political decision so the views of the wider council group were not sought.

Ngā whakaaweawe ā-rohe me ngā tirohanga a te poari ā-rohe

Local impacts and local board views

18.     The Terms of Reference relate to committees of the Governing Body and local board views have not been sought, as these are procedural matters for elected members of the Governing Body.

19.     Local board members are represented on the JGWP. All elected members are able to attend and listen to the JGWP meetings and may participate at the invitation of the chairperson.

Tauākī whakaaweawe Māori

Māori impact statement

20.     All council reports received by committees for decision making required active consideration about the direct and indirect impact on Māori.

21.     Accountability to mana whenua and mataawaka of Tāmaki Makaurau is a matter for consideration throughout all council decision making, regardless of the committee.  Implications on Māori and the impacts of decisions (both direct and indirect) are important considerations for all report writers when providing advice to all committees of the Governing Body.

22.     The addition of a member of the IMSB will assist the working party with the promotion of issues of significance for mana whenua groups and mataawaka of Tāmaki Makaurau.

23.     Including an IMSB member does not replace the need to consult and engage with Māori.

Ngā ritenga ā-pūtea

Financial implications

24.     There are no direct changes to budgets or spending because of the proposed change to the Terms of Reference.

Ngā raru tūpono me ngā whakamaurutanga

Risks and mitigations

25.     Risks associated with the proposed changes could include political, reputational and management related impacts.

26.     There are no greater risks associated with the proposed change than the existing terms that cannot be managed through existing council risk management processes.

Ngā koringa ā-muri

Next steps

27.     An amended version of the Governing Body Terms of Reference will be uploaded to the council’s website.

 

Ngā tāpirihanga

Attachments

No.

Title

Page

a

Terms of Reference

 

     

Ngā kaihaina

Signatories

Author

Andrew Simon Pickering - Governance Support Manager

Authorisers

Kenneth Aiolupotea - General Manager Democracy and Engagement

Anna Bray - Acting Director - Governance and CCO Partnerships

Phil Wilson - Tumu Whakarae / Chief Executive

 

 


Governing Body

23 November 2023

 

 

Summary of Confidential Decisions and related information released into Open

File No.: CP2023/16728

 

  

 

Te take mō te pūrongo

Purpose of the report

1.       To note confidential decisions and related information released into the public domain.

Whakarāpopototanga matua

Executive summary

2.       This is a regular information-only report which aims to provide greater visibility of confidential decisions made that can now be released into the public domain.

3.       The following decisions/documents are now publicly available:

Date of Decision

Subject

5.5.22

Planning Committee

Transit-Orientated Development in the Eastern Busway corridor

22.5.22

Finance and Performance Committee

Transit-Orientated Development in the Eastern Busway corridor

22.6.23

Capital Base of the Self-Insurance Fund

24.8.23

Budget Update Report August 2023

28.9.23

Land Acquisition Hill Road

Storm Recovery Related Documents

 

Governing Body Workshop - Consultation requirements for any central-local co-funding for storm affected properties

 

Governing Body Workshop - Funding Auckland’s storm recovery and resilience

 

Category 3 Storm Recovery Political Advisory Group

 

Governing Body Workshop - Consultation Feedback for storm affected properties

6.10.23

Consideration of Crown co-funding offer for storm recovery and resilience

 

Final signed version of ‘Buyout Scheme Rules’

Final signed version of ‘Categorisation approach’

Final signed version of “Draft dispute resolution framework”

Final signed version of “Special Circumstances Guidance”

Final Signed Version of “Uninsured individual circumstances”

Funding Storm Recovery and Resilience summary of feedback

Local Board feedback

 

4.       Note that, unlike an agenda report, staff will not be present to answer questions about the items referred to in this summary.  Governing Body members should direct any questions to the authors.

 

Ngā tūtohunga

Recommendation/s

That the Governing Body:

a)      tuhi ā-taipitopito / note the confidential decision and related information that is now publicly available:

i)       Planning Committee 5 May 2022 - Transit-Orientated Development in the Eastern Busway corridor

ii)       Finance and Performance Committee 22 May 2022 - Transit-Orientated Development in the Eastern Busway corridor

iii)      Capital Base of the Self-Insurance Fund

iv)      Budget Update Report 2023

v)      Land Acquisition Hill Road

vi)      Storm Recovery related information as listed in the report

 

 

Ngā tāpirihanga

Attachments

No.

Title

Page

a

Planning Committee 5 May 2022 - Transit-Orientated Development in the Eastern Busway corridor (Under Separate Cover)

 

b

Finance and Performance Committee 22 May 2022 - Transit-Orientated Development in the Eastern Busway corridor (Under Separate Cover)

 

c

Capital Base of the Self-Insurance Fund (Under Separate Cover)

 

d

Budget Update Report (Under Separate Cover)

 

e

Land Acquisition Hill Road (Under Separate Cover)

 

f

Storm Recovery Related Documents (Under Separate Cover)

 

     

Ngā kaihaina

Signatories

Author

Sarndra O'Toole - Kaiarataki Kapa Tohutohu Mana Whakahaere / Team Leader Governance Advisors

Authoriser

Phil Wilson - Tumu Whakarae / Chief Executive

 

 


Governing Body

23 November 2023

 

 

Summary of Governing Body information memoranda and briefings (including the Forward Work Programme) - 23 November 2023

File No.: CP2023/16726

 

  

 

Te take mō te pūrongo

Purpose of the report

1.       To receive an update Forward Work Programme and provide a public record of memoranda or briefing papers that may have been distributed to the Governing Body or its committees.

Whakarāpopototanga matua

Executive summary

2.       This is a regular information-only report which aims to provide greater visibility of information circulated to Governing Body members via memoranda/briefings or other means, where no decisions are required.

3.       The following memos or information were circulated to members of the Governing Body:

Date

Subject

27.10.23

Information Memorandum:  Auckland International Airport Annual Meeting October 2023

14.11.23

Mayor Wayne Brown:  Report on International Travel – Australia, Melbourne and Brisbane

16.11.23

Recovery Office Update

 

4.       The following workshops/briefings have taken place for the Governing Body:

Date

Subject

25.10.23

CONFIDENTIAL:  Regional Cultural Institutions Legislation Change (no attachment)

Reason for confidentiality:

Reason:

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.

Interests:

s7(2)(i) The withholding of the information is necessary to enable the local authority to carry on, without prejudice or disadvantage, negotiations.

In particular, the workshop material contains information regarding potential legislative change options for Auckland’s regional cultural institutions.

Grounds:

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.

30.10.23

CONFIDENTIAL:  Category 3 Storm Recovery Political Advisory Group (no attachment)

Reason:

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.

Interests:

s7(2)(g) - The withholding of the information is necessary to maintain legal professional privilege.

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 workshop material contains advice regarding negotiations with the Crown.

Grounds:

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.

15.11.23

CONFIDENTIAL:  Category 3 Storm Recovery Political Advisory Group (no attachment)

Reason:

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.

Interests:

s7(2)(g) - The withholding of the information is necessary to maintain legal professional privilege.

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 workshop material contains advice regarding negotiations with the Crown.

Grounds:

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.

 

5.       This document can be found on the Auckland Council website, at the following link:

http://infocouncil.aucklandcouncil.govt.nz/

at the top left of the page, select meeting/Te hui “Governing Body” from the drop-down tab and click “View”;

under ‘Attachments’, select either the HTML or PDF version of the document entitled ‘Extra Attachments’.

6.       Note that, unlike an agenda report, staff will not be present to answer questions about the items referred to in this summary.  Governing Body members should direct any questions to the authors.


 

 

Ngā tūtohunga

Recommendation/s

That the Governing Body:

a)      whiwhi / receive the Summary of Governing Body information memoranda and briefings (including the Forward Work Programme) – 23 November 2023.

 

Ngā tāpirihanga

Attachments

No.

Title

Page

a

Forward Work Programme

 

b

Information Memorandum:  Auckland International Airport Annual Meeting October 2023 (Under Separate Cover)

 

c

Mayor Wayne Brown:  Report on International Travel – Australia, Melbourne and Brisbane (Under Separate Cover)

 

d

Recovery Office Update (Under Separate Cover)

 

     

Ngā kaihaina

Signatories

Author

Sarndra O'Toole - Kaiarataki Kapa Tohutohu Mana Whakahaere / Team Leader Governance Advisors

Authoriser

Phil Wilson - Tumu Whakarae / Chief Executive

 

 


Governing Body

23 November 2023

 

 

Downtown Carpark strategic transport outcomes and funding

File No.: CP2023/18197

 

  

 

Te take mō te pūrongo

Purpose of the report

1.       To note that there is a confidential report contained in the confidential section of this meeting.

Whakarāpopototanga matua

Executive summary

2.       The Finance and Performance Committee approved the sale of the Downtown Carpark (DCP) in December 2020 and requested that Eke Panuku undertake an open market competitive sale process supported by Auckland Transport (Resolution FIN/2020/104).

3.       The sales process was to identify a development partner to redevelop the site to achieve development outcomes agreed by the Planning Committee in December 2020. (Resolution PLA/2020/120) and June 2021.

4.       The DCP site is identified in the Council City Centre Master Plan as a significant site that should be redeveloped to enhance the quality and experience of this key part of Auckland city centre waterfront.

5.       The development outcomes were in respect of land use, urban form and quality design, movement and access, environmental and social responsibility, and Māori. (Resolution PLA/2020/120)

6.       In addition, strategic transport outcomes were for the provision of a bus facility, either as part of the site redevelopment or by removing the Lower Hobson Street flyover and creating an on-street bus facility, provision of a multi modal transport/micro mobility hub and seeking responses as to car park provision from the developer to meet the objectives of the development and any additional public short stay car parking it proposed to deliver. (Resolution PLA/2021/52)

7.       A competitive process was undertaken. The Expressions of Interest (EOI) and Request for Development Proposal (RFDP) process did not require demolition of the DCP, and bidders were free to determine how they would meet council’s outcomes. Precinct Properties was selected by Eke Panuku at the end of that sales process as the preferred development partner in September 2022.

8.       The negotiated Development Agreement materially achieves each of council’s agreed development outcomes for the DCP site.

9.       Two of council’s strategic transport outcomes have been secured at council’s discretion, given they require a specific council funding commitment which may or may not come from the proceeds of the development. These are the Multi Modal/Micro Mobility Outcome and the Bus Facility Outcome which includes removal of the Lower Hobson Flyover and related public realm improvements. In response to feedback from council, the terms of the Development Agreement was amended so that council can make funding decisions about these transport outcomes as part of the Long-Term Plan 2024-2034 process.  The Development Agreement secures Precinct’s cooperation with council’s decisions on these outcomes.

10.     An update on the sales process was provided at a Transport and Infrastructure Committee workshop in December 2022. It set out the high-level commercial terms, the strategic transport outcomes to be achieved and the estimated cost for delivering these.  The Transport and Infrastructure Committee resolved to note the receipt of this information.

11.     Auckland Transport also reviewed the strategic transport outcomes. The review determined that the DCP site is not a suitable location for a Micro Mobility facility of this type as it isn’t predicted to generate sufficient demand and would offer low value for money for public expenditure. The AT Board’s decided at its 26 September 2023 meeting that the Micro Mobility facility should be removed from the DCP redevelopment.

12.     Both the Eke Panuku and Auckland Transport Boards have received business cases which set out the financial implications of the sale, noting that the costs of delivering the outcomes need to be incorporated into the Long-term Plan considerations.

13.     In October 2023 a further update on the sales process, outcomes and value issues was provided to a Governing Body workshop. Feedback has been incorporated into this report.

14.     The delivery of the Micro Mobility facility is proposed to be removed as a transport outcome and that the funding of the other transport and streetscape outcomes form part of the Long-Term Plan 2024-2034 process.

15.     Having consulted the Auckland Transport Board, the Eke Panuku Board has approved the final terms and conditions of the transaction. In approving the transaction, the Eke Panuku Board notes that it has met all the original requirements of the delegation. The development outcomes are secured by the Development Agreement. Other outcomes on council land have been secured at council discretion and require council decisions and budget approvals. Once Council decides to proceed with all or any of those outcomes, Precinct Properties is contractually obliged to cooperate.

16.     Various other issues have been raised which are commercially confidential. The issues can only be debated meaningfully in a confidential session. Once an agreement is concluded, substantial information can be released publicly.

 

Ngā tūtohunga

Recommendation/s

That the Governing Body:

a)      tuhi ā-taipitopito / note:

i)       the information contained in this report

ii)       that the report is confidential due to the commercial aspects of the council’s carparking operations contained in the report.

 

Ngā tāpirihanga

Attachments

There are no attachments for this report.    

Ngā kaihaina

Signatories

Authors

Allan Young - Director Development

Marian Webb - General Manager Assets and Delivery, Eke Panuku

Authorisers

David Rankin - Chief Executive - Eke Panuku

Phil Wilson - Chief Executive

 

 


Governing Body

23 November 2023

 

 

 

Exclusion of the Public: Local Government Official Information and Meetings Act 1987

That the Governing Body

a)      whakaae / agree to 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:  Downtown Carpark strategic transport outcomes and funding

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 commercially sensitive information that could prejudice negotiations, would affect the commercial interest of a third party  and would be likely prejudice or disadvantage the commercial position of Council.

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.