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MINUTES OF AN EXTRAORDINARY MEETING OF THE
FINANCE AND STRATEGY COMMITTEE

HELD ON WEDNESDAY, 12 DECEMBER 2007 AT 9.37 AM

PRESENT: Councillor Douglas Armstrong, QSO [Chairman]
  His Worship the Mayor Hon John Banks, QSO [until 10.18am, item 4.1; from10.22am, item 4.1;
until 10.44am, item 4.3; from 10.46am,item 4.3; until 12.23pm; item 6; from 12.30pm, item 6; until 1.15pm, item 6; from 1.25pm, item 6; until 2.40pm, item 6; from 2.49pm, item 6]
  Councillors Ken Baguley  
    Aaron Bhatnagar  
    Leila Boyle  
    Dr Cathy Casey [until 1.15pm, item 6; from 1.40pm, item 6; until 2.40pm, item 6; from 2.44pm, item 6]
    Bill Christian, JP  
    Mark Donnelly [until 10.30am, item 4.1; from 10.33am, item 4.1]
    Graeme Easte  
    Glenda Fryer [until 3.50pm, item 4.6]
    Paul Goldsmith [until 11.40am, item 5.2; from 11.45am, item 5.2; until 1.40pm, item 6; from1.50pm, item 6;
until 4.25pm, item 4.6; from 4.45pm, item 7]
  Deputy Mayor David Hay, JP [until 10.25am, item 4.1; from 10.30am, item 4.1; until 10.45am, item 4.3; from10.47am, item 4.3; until 10.48am, item 4.3; from 10.50am, item 4.3; until11.55am, item 6; from11.59am, item 6]
    Peseta Sam Lotu-Iiga [until 10.30am, item 4.3;
from 10.35am, item 4.3]
    Toni Millar, JP [until 11.55am, item 6; from 11.59am, item 6; until 12.00pm; item 6; from 12.01pm, item 6; until 1.40pm, item 6; from 1.50pm, item 6; until 2.25pm, item 6; from 2.30pm, item 6]
    Greg Moyle [until 2.42pm, item 6; from 2.45pm, item 6]
    Graeme Mulholland, JP  
    Richard Northey, ONZM [until 2.50pm, item 6; from 2.51pm, item 6]
  Noelene Raffills [until 10.28am, item 4.1; from 10.34am, item 4.1; until 10.45am, item 4.3; from 10.47am, item 4.3; until 1.15pm, item 6; from 1.35pm, item 6; until 4.40pm, item 4.6; from 4.41pm, item 4.6]
    Denise Roche [until 2.50pm, item 6; from 2.52pm, item 6]
         

  1. Top APOLOGIES

    There were no apologies.

  2. Top EXTRAORDINARY BUSINESS

    There was no extraordinary business.

  3. Top CHIEF EXECUTIVE'S OVERVIEW OF DIRECTION SETTING FOR THE 2008/2009 ANNUAL PLAN

    1. That it be noted that the Long-Term Council Community Plan 2006-2016 was adopted by Council in June 2006, setting the strategic direction until 2016, including significant investment in identified projects and service improvement initiatives aimed at addressing the challenge of growth and accelerating progress towards achievement of the First City of the Pacific, long-term vision.

    2. That it be noted that the Annual Plan 2008/2009 contains the proposed annual budget and funding statements for year three of the Long-Term Council Community Plan (LTCCP) as amended by the deferral of various new projects and initiatives to produce a draft rates increase equal to the Council rate of inflation of 4.8 per cent; further it provides the opportunity for Council to decide whether or not the planned programme of work is taking the city in the right direction and what the priority projects should be.

    3. That the range of issues that need to be considered in the development of the 2008/2009 Annual Plan be noted, including:

      1. that the draft budget, inclusive of recommended new initiatives, results in an overall rates increase generally in line with the Council's rate of inflation while ensuring that essential community and infrastructure projects are provided for;

      2. a proposal to increase the resource consent fee by five per cent due to the workload impacts arising from the greater volume of resource consents being processed and the policy of this being undertaken on a cost recovery basis;

      3. issues regarding rates, development contributions and debt;

      4. issues regarding charitable payments from Metrowater;

      5. the challenges the organisation faces in implementation of the long-term vision and Long-Term Council Community Plan (LTCCP), including the currently tight labour market;

      6. other current developments: Auckland International Airport Limited shareholding, the government rating inquiry and the Royal Commission of Inquiry into Auckland Governance;

      7. the issues outlined in the report "The Auckland city context: a snapshot of issues facing the city".

    CARRIED

  4. Top BACKGROUND ON ISSUES AND BUDGET ITEMS

    4.1. OPTIONS FOR INCREASING COUNCILS REVENUE
    1. That it be noted that approximately 72% of Auckland City Council's operating revenue comes from rates, with the remainder from user charges, fees, interest, dividends and other non-rates sources.
    2. That it be noted that the Council could increase its revenue over and above that already included in the draft budget from the following options:
      1. increasing "pay and display" charges;
      2. increasing the number of "pay and display" areas;
      3. increasing off-street parking charges;
      4. reviewing car parking lease arrangements;
      5. increased parking enforcement that may require additional parking officers.
    3. That it be noted that officers are exploring other avenues for increasing Council's revenue in the future, including Central Government funding and Auckland International Airport Limited dividend payments.

    CARRIED

    4.2. OVERVIEW DEVELOPMENT CONTRIBUTIONS POLICY
    1. That officers be requested to continue to refine and extend the Auckland City Council's Development Contributions Policy to include:
      1. revising 2007 development contributions charges to account for the programmed cost of finance increases (initial estimate is an increase of five per cent) excluding any changes as a result of adjustments to the capital programme, census data and methodology refinements;
      2. an update of the current Development Contributions Policy involving;
        1. methodology refinements;
        2. amendments to the assessment for historic financial contributions;
        3. review the treatment of retirement villages for development contributions;
        4. charge and payment certainty for developers;
        5. special assessment and private development agreement guidelines.
      3. extending the application of the Development Contributions Policy to the Hauraki Gulf Islands in relation to community amenities.
    2. That the Community Boards be briefed on their role in prioritising capital projects funded by the Development Contributions Policy as part of the Council's planning for growth.
    3. That Auckland City Council's commitment to the ongoing work on the Development Contributions Policy be reconfirmed.

    CARRIED

    4.3. EFFICIENCY AND EFFECTIVENESS

    The Chairman moved:

    1. That the report of the Operational reporting manager regarding Efficiency and Effectiveness dated 28 November be received.

    2. That officers be thanked for work done and that the Chief Executive be requested to investigate further initiatives to increase productivity, efficiency and effectiveness, which could include targets for further "hard" savings of up to $6 million to be carried forward to the 2008/2009 budget.

      Councillor Donnelly moved the following amendment:

      That officer's and the Chief Executive be thanked for the work done.

    3. That it be noted that savings of $19.7 million were achieved in 2006/2007, and savings of $13.6 million were achieved in 2005/2006, it is also noted that in 2006/2007 $13.7 million were "hard" (reduced outflows) savings.

    4. That the 2008/2009 budget be amended to include a conservative estimate of budgeted "hard" savings of $6 million, and that the Chief Executive report against this budgeted target quarterly to the Finance and Strategy Committee.

    5. That the Chief Executive report the 1 July 2007 to 31 December 2007 savings to the March 2008 Combined Committees meeting, and confirm their impact on the 2007/2008 budget.

    LOST

    The Chairman put the following substantive motion:

    1. That the report of the Operational reporting manager regarding Efficiency and Effectiveness dated 28 November be received.

    2. That officers be thanked for work done and that the Chief Executive be requested to investigate further initiatives to increase productivity, efficiency and effectiveness, which could include targets for further "hard" savings of up to $6 million to be carried forward to the 2008/2009 budget.

    CARRIED

    4.4. ASSET MANAGEMENT PLAN PROCESS

    1. That the report of the Asset planning manager regarding the Asset Management Plan Process dated 30 November be received.

    2. That it be noted that Councillors and Community board members will be closely involved as appropriate in the development of asset management plans from March to August 2008.

    3. That the relevant asset management plans be presented to the appropriate Boards, including the Art Gallery Enterprise Board and the Zoo Enterprise Board, prior to consideration by the appropriate standing committee.

    CARRIED

    4.5. ASSET PERFORMANCE AND FUNDING
    1. That it be noted that Auckland City Council's commercial assets generally do not deliver a fully commercial rate of return but that every endeavour be made by Council to maximise the rate of return in the interests of ratepayers, consistent with Council's other objectives and policies.
    2. That it be noted that, with the exception of Auckland International Airport Limited, there is little scope for improvements in asset performance without a significant change in policy direction but that officers be requested to maximise asset performance whenever possible.
    3. That it be noted that officers are investigating options for council's administrative buildings.

    CARRIED

    That items 5, 5.1, 5.2 and 6 be taken at this point.

    CARRIED

    4.6. METROWATER AND WATER ISSUES

    [ATTACHMENT 4.6A]

    The Chairman moved:

    1. That it be noted that Council's revenue projections provide for charitable payments of $260 million to be obtained over the next eight years to fund stormwater network upgrades.
    2. That it be noted that any reduction in charitable payments will require either rates increases, an increase in borrowing or a reduction in planned expenditure.
    3. That it be noted that, on balance, officers recommend the continuation of the policy of seeking charitable payments from Metrowater for the following reasons:
      1. it will establish water prices at a level that will encourage efficient water use which in turn will help optimise capital investment decisions over the long term;
      2. it will provide ratepayers with a more appropriate return on their investment in Metrowater.
    4. That it be noted that there are a range of options available, as set out in the "Metrowater and Water Issues" report and the supplementary report, to reduce or remove the charitable payment programme and maintain overall revenue levels.
    5. That the potential tax scenarios arising from the binding ruling application to the Inland Revenue Department and the range of associated solutions be noted and that officers be requested to explore these solutions further should the binding ruling declare that Metrowater is a tax paying entity.
    6. That the practical issues and inequities associated with the introduction of a progressive pricing system for water charges be noted.
    7. That the continued funding of wastewater services through user charges rather than rates based bulk funding be endorsed.
    8. That the role price has to play in determining appropriate water use habits be noted.
    9. That the current division of responsibilities with regard to the management of the stormwater network be endorsed subject to further analysis by officers should the Royal Commission on Regional Governance or other circumstances warrant it.
    10. That Council is desirous of rectifying the problem of profits from Metrowater being used to subsidise Council rates and notes;
      1. Metrowater budgeted income from water and wastewater tariffs for 2008/2009 is:
        1. $151 million, the amount required to maintain a first class supply
        2. $26 million, the amount to cover the planned charitable payment
        3. $177 million, total income
      2. Council's budgeted income as per LTCCP for 2008/2009 is:
        1. $439 million, rates income after 10.5% increase
        2. $24 million, the income from Metrowater charitable payment
        3. $463 million, total of above
      3. A significant portion of the Metrowater charges are required to create the surplus profit and cover charitable payments to Council are to Metrowater customers who occupy non rateable properties and who will therefore benefit significantly from any increase in rates to replace a reduction in the water tariff and resultant reduction in charitable payments.
      4. Any reduction in Metrowater tariffs to reduce the surplus profit will benefit Metrowater customers in proportion to their useage whereas the transfer of this reduction to a rates increase will be paid by ratepayers either in proportion to their property value, as a uniform annual charge or combination of the two.
      5. Any increase in debt to cover reduced Metrowater charges and the reduced payments from Metrowater to Council would introduce additional borrowing costs to service the loans.
    11. That officers be asked to provide a report and information that enables Council to consult with the citizens and ratepayers of Auckland on at least the following;
      1. Reducing water and wastewater prices from 1 July 08 to the minimum level required to maintain a first class water and wastewater service on a sustainable basis and increasing rates by either a uniform annual charge, increase in rate per dollar of annual value, borrowing or a combination of these to replace the reduction in Metrowater income and subsequent charitable payments, (modelling will be required to show the impact of this on various bands of rateable properties and water users);
      2. Adjusting the water and wastewater prices over two or three years to remove the surplus profit in Metrowater and the subsequent charitable payments from Metrowater to Council that presently subsidises rates;
      3. The possibility of maintaining the surplus profit and charitable payments at their present level but with no increase in the future;
      4. Investigating means of charging users in non rateable properties so they contribute towards a return on the capital used by Metrowater;
      5. How Metrowater can give their customers certainty into the future of affordable tariff increases required to meet its increasing costs including those from Watercare;
      6. Consequences of increasing debt

      Councillor Easte moved the following amendment by way of replacement:

    12. That Council develop and adopt a socially responsible and appropriate progressive pricing system for water charges to be applied from 2009/2010.
    13. That the current funding for wastewater services through user charges be endorsed for the 2008/2009 year and that officers be requested to report on the option of part funded wastewater services through a value based rate.

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

    For the Amendment: Against the Amendment:
    Cr Leila Boyle
    Cr Dr Cathy Casey
    Cr Graeme Easte
    Cr Richard Northey
    Cr Denise Roche    		 Cr Doug Armstrong
    Cr Ken Baguley
    Cr Aaron Bhatnagar
    Cr Bill Christian
    Cr Mark Donnelly
    Cr Paul Goldsmith
    Deputy Mayor David Hay
    Cr Peseta Sam Lotu-Iiga
    Cr Toni Millar
    Cr Greg Moyle
    Cr Graeme Mulholland
    Cr Noelene Raffills
    His Worship the Mayor

    Councillor Glenda Fryer was absent.

    The amendment was declared LOST by 13 votes to 5.

    Councillor Boyle moved the following amendment:

    1. That Metrowater be requested to reduce its early payment discount to 5% and apply the saving as a lower water tariff.

    LOST

    Councillor Northey moved the following amendment:

    1. That Metrowater be requested not to apply water supply restrictions except where the customer has agreed to the imposition.

    A show of hands was called for and the amendment was declared LOST by 11 votes to 6, with 2 abstentions.

    Councillor Hay moved the following amendment:

    1. That the question of water supply restrictions and the disputes process be included in discussions surrounding Metrowater's Statement of Corporate Intent.

    A show of hands was called for and the amendment was declared CARRIED by 17 votes to 1. Councillor Glenda Fryer was absent.

    Councillor Casey moved the following amendment:

    1. That given that Metrowater has recently amended their disputes procedure that it now be asked to report to Council on reviewing the cases currently before the district court including any future cases with the intention of processing these claims through the disputes tribunal.
    2. That Metrowater report to the Finance and Strategy Committee on the rationale for not including tenants as customers and the rationale for the Metrowater Community Trust not including tenants as eligible for assistance.

    CARRIED

    Councillor Roche moved the following amendment:

    1. That as part of the consultation on water and wastewater prices Council seek the views of Auckland residents on the governance and structure of Metrowater such as whether it should be returned to Council management as a Stand Alone Business Unit.

    LOST

    The Chairman put the following substantive motion:

    1. That it be noted that Council's revenue projections provide for charitable payments of $260 million to be obtained over the next eight years to fund stormwater network upgrades.
    2. That it be noted that any reduction in charitable payments will require either rates increases, an increase in borrowing or a reduction in planned expenditure.
    3. That it be noted that, on balance, officers recommend the continuation of the policy of seeking charitable payments from Metrowater for the following reasons:
      1. it will establish water prices at a level that will encourage efficient water use which in turn will help optimise capital investment decisions over the long term;
      2. it will provide ratepayers with a more appropriate return on their investment in Metrowater.
    4. That it be noted that there are a range of options available, as set out in the "Metrowater and Water Issues" report and the supplementary report, to reduce or remove the charitable payment programme and maintain overall revenue levels.
    5. That the potential tax scenarios arising from the binding ruling application to the Inland Revenue Department and the range of associated solutions be noted and that officers be requested to explore these solutions further should the binding ruling declare that Metrowater is a tax paying entity.
    6. That the practical issues and inequities associated with the introduction of a progressive pricing system for water charges be noted.
    7. That the continued funding of wastewater services through user charges rather than rates based bulk funding be endorsed.
    8. That the role price has to play in determining appropriate water use habits be noted.
    9. That the current division of responsibilities with regard to the management of the stormwater network be endorsed subject to further analysis by officers should the Royal Commission on Regional Governance or other circumstances warrant it.
    10. That Council is desirous of rectifying the problem of profits from Metrowater being used to subsidise Council rates and notes;
      1. Metrowater budgeted income from water and wastewater tariffs for 2008/2009 is:
        1. $151 million, the amount required to maintain a first class supply
        2. $26 million, the amount to cover the planned Charitable payment
        3. $177 million, total income
      2. Council's budgeted income as per LTCCP for 2008/2009 is:
        1. $439 million, rates income after 10.5% increase
        2. $24 million, the income from Metrowater charitable payment
        3. $463 million, total of above
      3. A significant portion of the Metrowater charges are required to create the surplus profit and cover charitable payments to Council are to Metrowater customers who occupy non rateable properties and who will therefore benefit significantly from any increase in rates to replace a reduction in the water tariff and resultant reduction in charitable payments.
      4. Any reduction in Metrowater tariffs to reduce the surplus profit will benefit Metrowater customers in proportion to their useage whereas the transfer of this reduction to a rates increase will be paid by ratepayers either in proportion to their property value, as a uniform annual charge or combination of the two.
      5. Any increase in debt to cover reduced Metrowater charges and the reduced payments from Metrowater to Council would introduce additional borrowing costs to service the loans.
    11. That officers be asked to provide a report and information that enables Council to consult with the citizens and ratepayers of Auckland on at least the following;
      1. Reducing water and wastewater prices from 1 July 08 to the minimum level required to maintain a first class water and wastewater service on a sustainable basis and increasing rates by either a uniform annual charge, increase in rate per dollar of annual value, borrowing or a combination of these to replace the reduction in Metrowater income and subsequent charitable payments (modelling will be required to show the impact of this on various bands of rateable properties and water users);
      2. Adjusting the water and wastewater prices over two or three years to remove the surplus profit in Metrowater and the subsequent charitable payments from Metrowater to Council that presently subsidises rates;
      3. The possibility of maintaining the surplus profit and charitable payments at their present level but with no increase in the future.
      4. Investigating means of charging users in non rateable properties so they contribute towards a return on the capital used by Metrowater.
      5. How Metrowater can give their customers certainty into the future of affordable tariff increases required to meet its increasing costs including those from Watercare.
      6. Consequences of increasing debt
    12. That the question of water supply restrictions and the disputes process be included in discussions surrounding Metrowater's Statement of Corporate Intent.
    13. That given that Metrowater has recently amended their disputes procedure that it now be asked to report to Council on reviewing the cases currently before the district court including any future cases with the intention of processing these claims through the disputes tribunal.
    14. That Metrowater report to the Finance and Strategy Committee on the rationale for not including tenants as customers and the rationale for the Metrowater Community Trust not including tenants as eligible for assistance.

    CARRIED

  5. Top RATING AND REVENUE POLICY

    5.1. ANALYSIS OF INDEPENDENT RATES INQUIRY RECOMMENDATIONS

    The Chairman moved:

    1. That it be noted that the rates inquiry recommendations do not provide funding assistance for councils in the short term, as they require central government to introduce new legislation.

    2. That it be noted that the following rates inquiry recommendations are consistent with Council's policies and previous submissions:

      1. Removing most rating exemptions;

      2. Increasing the local authority petroleum tax by 2 cents per litre;

      3. Establishing a new water infrastructure fund;

      4. Including water-related charges in the central government rates rebate;

      5. Ownership of the rates rebate administration by a central government agency;

      6. Using debt to fund capital infrastructure;

      7. Modifying the current long-term and annual plan requirements to be less prescriptive and more meaningful;

      8. Introducing some form of charge or levy on international visitors.

    3. That it be noted that the following rates inquiry recommendations are not consistent with Council's policies and previous submissions:

      1. Removing the ability to set uniform annual general charges;

      2. Removing the ability to have general rates differentials, although the council does support lowering business differentials for the general rate;

      3. Setting charges for services supplied by council controlled organisations solely on a cost recovery basis.

      Councillor Casey moved the following amendment:

    4. That the council disagree with recommendation 21 from the Shand Independent Rates Inquiry, "That government remove legislative barriers to the funding of transport projects through the use of tolls".

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

    For the Amendment: Against the Amendment:
    Cr Leila Boyle
    Cr Dr Cathy Casey
    Cr Graeme Easte
    Cr Glenda Fryer
    Cr Richard Northey
    Cr Denise Roche    		 Cr Doug Armstrong
    Cr Ken Baguley
    Cr Aaron Bhatnagar
    Cr Bill Christian
    Cr Mark Donnelly
    Cr Paul Goldsmith
    Deputy Mayor David Hay
    Cr Peseta Sam Lotu-Iiga
    Cr Toni Millar
    Cr Greg Moyle
    Cr Graeme Mulholland
    Cr Noelene Raffills
    His Worship the Mayor

    The amendment was declared LOST by 13 votes to 6.

    The Chairman put the following substantive motion:

    1. That it be noted that the rates inquiry recommendations do not provide funding assistance for councils in the short term, as they require central government to introduce new legislation.

    2. That it be noted that the following rates inquiry recommendations are consistent with Council's policies and previous submissions:

      1. Removing most rating exemptions;

      2. Increasing the local authority petroleum tax by 2 cents per litre;

      3. Establishing a new water infrastructure fund;

      4. Including water-related charges in the central government rates rebate;

      5. Ownership of the rates rebate administration by a central government agency;

      6. Using debt to fund capital infrastructure;

      7. Modifying the current long-term and annual plan requirements to be less prescriptive and more meaningful.

      8. Introducing some form of charge or levy on international visitors.

    3. That it be noted that the following rates inquiry recommendations are not consistent with Council's policies and previous submissions:

      1. Removing the ability to set uniform annual general charges;

      2. Removing the ability to have general rates differentials, although the council does support lowering business differentials for the general rate;

      3. Setting charges for services supplied by council controlled organisations solely on a cost recovery basis.

    CARRIED

    5.2. FINANCIAL, REVENUE AND RATES-RELATED POLICIES FOR 2008/2009

    The Chairman moved:

    1. That it be noted that the general rate revenue and targeted rates revenue requirements will not be known until the Council has finalised the 2008/2009 budget.
    2. That the next step of the long-term general rate differential strategy, which transfers around $2.6 million from non-residential groups to the residential group be approved for 2008/2009.
    3. That the CBD targeted rate for the CBD non-residential group be increased in line with the reduction in the general rate by applying the next step of the general rate differential strategy (this will increase the targeted rate by around $2.3 million dollars to $10.7 million for 2008/2009).
    4. That the CBD targeted rate for residential units in the CBD be increased from $52 to $55 for 2008/2009.
    5. That it be noted that increasing the uniform annual general charge (UAGC) is consistent with Council policies, and that the upper limit of the UAGC is $580 per separately used or inhabited part of a property.
    6. That it be noted that increasing the uniform annual general charge will transfer rates from high-value properties to low-value properties.
    7. That the discount for full payment of rates by the first instalment date be increased from 2.83% to 3.2% for 2008/2009.
    8. That it be noted that at this stage, there are no proposed changes to the Council's assistance schemes.
    9. That officers investigate and report on the introduction of an appropriate rate or charge on visitor accommodation.

      Councillor Fryer moved the following amendment by way of replacement:

    10. That it be noted that increasing the uniform annual general charge will transfer rates from high-value properties to low-value properties and therefore the uniform annual general charge (UAGC) be discontinued from the 2008/2009 budget.

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

    For the Amendment: Against the Amendment:
    Cr Leila Boyle
    Cr Dr Cathy Casey
    Cr Graeme Easte
    Cr Glenda Fryer
    Cr Richard Northey
    Cr Denise Roche    		 Cr Doug Armstrong
    Cr Ken Baguley
    Cr Aaron Bhatnagar
    Cr Bill Christian
    Cr Mark Donnelly
    Cr Paul Goldsmith
    Deputy Mayor David Hay
    Cr Peseta Sam Lotu-Iiga
    Cr Toni Millar
    Cr Greg Moyle
    Cr Graeme Mulholland
    Cr Noelene Raffills
    His Worship the Mayor

    The amendment was declared LOST by 13 votes to 6.

    Councillor Boyle moved the following amendment:

    1. That officers be requested to report to the City Development Committee on options to remove the uniform targeted rate for rubbish and replacing it with a polluter pays system that could be related to the amount of rubbish generated.

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

    For the Amendment: Against the Amendment:
    Cr Leila Boyle
    Cr Dr Cathy Casey
    Cr Bill Christian
    Cr Mark Donnelly
    Cr Graeme Easte
    Cr Glenda Fryer
    Cr Richard Northey
    Cr Denise Roche    		 Cr Doug Armstrong
    Cr Ken Baguley
    Cr Aaron Bhatnagar
    Cr Paul Goldsmith
    Deputy Mayor David Hay
    Cr Peseta Sam Lotu-Iiga
    Cr Toni Millar
    Cr Greg Moyle
    Cr Graeme Mulholland
    Cr Noelene Raffills
    His Worship the Mayor

    The amendment was declared LOST by 11 votes to 8.

    The Chairman put the following substantive motion:

    1. That it be noted that the general rate revenue and targeted rates revenue requirements will not be known until the Council has finalised the 2008/2009 budget.
    2. That the next step of the long-term general rate differential strategy, which transfers around $2.6 million from non-residential groups to the residential group be approved for 2008/2009.
    3. That the CBD targeted rate for the CBD non-residential group be increased in line with the reduction in the general rate by applying the next step of the general rate differential strategy (this will increase the targeted rate by around $2.3 million dollars to $10.7 million for 2008/2009).
    4. That the CBD targeted rate for residential units in the CBD be increased from $52 to $55 for 2008/2009.
    5. That it be noted that increasing the uniform annual general charge (UAGC) is consistent with Council policies, and that the upper limit of the UAGC is $580 per separately used or inhabited part of a property.
    6. That it be noted that increasing the uniform annual general charge will transfer rates from high-value properties to low-value properties.
    7. That the discount for full payment of rates by the first instalment date be increased from 2.83% to 3.2% for 2008/2009.
    8. That it be noted that at this stage, there are no proposed changes to the Council's assistance schemes.
    9. That officers investigate and report on the introduction of an appropriate rate or charge on visitor accommodation.

    CARRIED

    The meeting adjourned at 12:40pm and reconvened at 1:15pm.

  6. Top UPDATES ON BUDGETS FOR 2008/2009

    Secretarial Note:

    The Chairman moved the following motion in parts and Councillors went through each item line by line. Voting was taken by show of hands and voices and is reflected in the right hand column.

    A. That changes to operational expenditure, service levels and revenue from activities be approved as identified below:

    (i) Additional revenues within the 9.8% baseline budget:

    Ref Row Revenue 2008/2009 ($000) 2009/2010 ($000) 2010/2011 ($000) Voting
    A(i) 1 Licence/consent fees increase from 1 July 2008 of 4.5% to reflect increased overheads for processing. -1,500 -1,500 -1,500 CARRIED
    A(i) 2 Additional revenue from properties purchased as part of AMETI project -1,539 -1,539 -1,539 CARRIED
    A(i) 3 Additional revenues from Auckland City's commercial properties -724 -724 -724 CARRIED
    A(i) 4 Additional revenue for City Parks Services -209 -209 -209 CARRIED
    A(i) 5 Additional parking revenues -2,500 -2,500 -2,500 CARRIED

    (ii) Increased service levels within the 9.8% baseline budget:

    Ref Row Initiative/ activity 2008/2009 ($000) 2009/2010 ($000) 2010/2011 ($000) Voting
    A(ii) 1 New initiative - outcome of public art review. Administration of new advisory panel for public art. This includes printing, honarariums, reimbursements and promotion. 50 50 50 CARRIED
    A(ii) 2 Service level change - loss of revenue as a result of Marine event centre development 0 322 343 CARRIED
    A(ii) 3 Service level change - increase the standard of cleaning in high profile toilets in the key centres 250 250 250 CARRIED
    A(ii) 4 Service level change - Sponsoring and delivering major and community events 220 220 220 CARRIED
    A(ii) 5 LTCCP Initiative - Economic Growth - Framework for Economic Development Strategy - for research and planning to support the delivery of the economic development strategy. 50 0 0 CARRIED
    A(ii) 6 LTCCP Initiative - Economic Growth - Tamaki Edge/Quality Planning - programme of activities to recruit new companies into the Tamaki innovation precinct and wider Tamaki Edge as part of a city-wide investment promotion strategy 33 0 0 CARRIED
    A(ii) 7 LTCCP Initiative - Economic Growth - Town & Gown: Building city relationships - implementation of actions from the University Quarter plan in partnership with AUT University and the University of Auckland 33 0 0 CARRIED
    A(ii) 8 Education campaign - Food and Green waste: New Initiative to introduce a MRF (materials recovery facility) to divert recyclable solid waste from landfill to MRF 150 150 150 CARRIED
    A(ii) 9 Hazardous collection - share of contribution to ARC: New initiative (approved via the LTCCP process) to continue support to the regional project to collect hazardous waste and recycle, thus reducing waste going to landfill and having a negative impact to the environment. 67 200 200 CARRIED
    A(ii) 10 Waste Education: New initiative approved via the LTCCP process to provide on-going waste education and promotion of the waste minimisation (recycling and composting) in the community 100 150 150 CARRIED
    A(ii) 11 Additional anticipated maintenance costs of council owned berths charged by the marina trust account, offset by increased revenue from beth rentals and savings in berth ownership costs arising from potential sale of berths owned at the Orakei Marina 53 31 31 CARRIED
    A(ii) 12 Support the Isthmus district plan hearings 72 174 0 CARRIED
    A(ii) 13 Additional HR planning and support will be required for Auckland City Council to effectively manage initiatives connected with the 2011 Rugby World Cup. 35 0 0 CARRIED
    A(ii) 14 Renewal of city-wide maintenance contracts 800 0 0 CARRIED

    (iii) (a) Increased service levels/new activities not included in the baseline budget:

    Ref Row Initiative/activity 2008/2009 ($000) 2009/2010 ($000) 2010/2011 ($000) Voting
    A(iii) 3 New initiative - Designation/acquisition pre-work.  200 0 0 CARRIED
    A(iii) 6 Secure asset management of Heritage Resources through improved cataloguing and asset validation. 200 200 60 A show of hands was called for and the motion was declared  CARRIED by 13 votes to 6.
    A(iii) 7 LTCCP Initiative - Economic Growth Niche industries. Increased service level to further grow and build on existing partnerships and programme of work to catalyse growth in the city's niche industries (additional budget)

     

    		 50 0 0 A show of hands was called for and the motion was declared CARRIED by 13 votes to 6.
    A(iii) 8 LTCCP Initiative - Economic Growth - Availability of right skill sets - Invest in labour market research to understand Auckland city's current and future skill needs and a means to address them. (additional budget) 25 50 0 A show of hands was called for and the motion was declared CARRIED by 13 votes to 6.
    A(iii) 9 LTCCP Initiative - Economic Growth - Study of Wealth Drivers - forecast economic growth (additional budget) 50 0 0 A show of hands was called for and the motion was declared CARRIED by 13 votes to 6.
    A(iii) 10 LTCCP Initiative - Economic Growth - Sister city relationships - Delivering economic focused initiatives with our international partnerships (additional budget) 50 0 0 A show of hands was called for and the motion was declared CARRIED by 11 votes to 7.
    A(iii) 12 Economic Growth - Broadband - Implement WiFi and fibre ducting initiatives

     

    		 250 0 0 A show of hands was called for and the motion was declared CARRIED by 9 votes to 7 with 2 abstentions. Councillor Donnelly did not vote or speak on this item.
    A(iii) 13 To provide on-going maintenance for Galway recycling facility 50 50 50 CARRIED

    (iii) (b) That further information be provided on the following projects to the 12 February 2008 Annual Plan Direction Setting meeting:

    Ref Row Initiative/activity 2008/2009 ($000) 2009/2010 ($000) 2010/2011 ($000) Voting
    A(iii) 1 Stormwater treatment devices: New initiative approved via the LTCCP process to provide for on-going operational expenditure relating to capital works delivery to maintain newly created stormwater assets at its minimum operative levels of service. 200 300 400 CARRIED
    A(iii) 2 Stormwater pipe network: New initiative approved via the LTCCP process to provide for on-going operational expenditure relating to capital works delivery to maintain newly created stormwater assets at it's minimum operative levels of service. 36 49 61 CARRIED
    A(iii) 4 Service level change (maintain) - increase frequency of street cleaning in high profile centres to meet current levels of service 400 400 400 CARRIED
    A(iii) 5 A new level of service for the inner CBD and 38 other commercial centres that will raise the standard of cleaning and consequently the appearance of the streetscapes. 3,000 5,800 5,800 CARRIED
    A(iii) 11 Development of a funding and implementation plan for establishing a convention centre 100 0 0 CARRIED
    A(iii) 14 Operating expenditures required to prepare for the 2011 Rugby World Cup 145 518 2,510 CARRIED

    B. That it be noted that further reductions in operational service levels, additional revenues and capital expenditure deferrals will be required to achieve a budget for 2008/2009 with a 4.8 percent rate increase.

    CARRIED

    C. That it be noted that the following options, which together with an additional $4.7 million of capital projects to be funded from debt rather than surplus, reduce the rate increase requirement to 4.8 per cent:

    (i) (a) Identified additional revenues from existing sources:

    Ref Row Revenue 2008/2009 ($000) 2009/2010 ($000) 2010/2011 ($000) Voting
    C(i) 2 Proposed licence/consent fees increase of 5% from 1 January 2009 to recognise enhanced service levels as a result of Regulatory Programme -860 -1,720 -1,720 CARRIED
    C(i) 3 Additional parking revenue (net) from recruitment of 30 additional parking officers and 3 supporting infringement review advisors, 10 + 1 per year over 3 years -2,000 -4,000 -6,000 CARRIED
    C(i) 4 Additional leasing revenue -58 -58 -58 A show of hands was called for and the motion was declared CARRIED by 10 votes to 9.
    C(i) 5 Additional revenue for City Parks Services -528 -83 -679 A show of hands was called for and the motion was declared CARRIED by 14 votes to 3 with 2 abstentions.
    C(i) 6 Increased subsidies (75%) relating to School Travel Plans -344 -344 -344 CARRIED

    (i) (b) That further information be provided on the following projects to the 12 February 2008 Annual Plan Direction Setting meeting:

    Ref Row Revenue 2008/2009 ($000) 2009/2010 ($000) 2010/2011 ($000) Voting
    C(i) 1 Further increase to Zoo admission prices -55 -55 -55 CARRIED

    (ii) Identified savings from reduced service levels/ceasing activities:

    Ref Row Reduced expenditure 2008/2009 ($000) 2009/2010 ($000) 2010/2011 ($000) Voting
    C(ii) 1 Reducing the making community facilities more relevant projects based on prioritisation -194 -194 -194 A show of hands was called for and the motion was declared CARRIED by 12 votes to 7.
    C(ii) 2 Not continuing with Cadetships Programme. -174 -174 -174 A show of hands was called for and the motion was declared CARRIED by 13 votes to 6.

     
    C(ii) 3 Ceasing proceeding with uncommitted projects. -449 -449 -449 A show of hands was called for and the motion was declared CARRIED by 12 votes to 7.
    C(ii) 4 Declining opportunity to join the Beacon Research Consortium -200 0 0 CARRIED
    C(ii) 5 Not filling Climate Change position -100 0 0 A show of hands was called for and the motion was declared CARRIED by 13 votes to 6.
    C(ii) 6 Slowing the corporate sustainability initiative -50 0 0 A show of hands was called for and the motion was declared CARRIED by 13 votes to 6.
    C(ii) 7 Not filling position around Economic Retail Strategy -

     

    		 -50 0 0 A show of hands was called for and the motion was declared CARRIED by 11 votes to 7.
    C(ii) 8 Reducing costs around production and promotion of the LTCCP for public consultation (SOH 12 for, 6 against) -200 -200 -200 A show of hands was called for and the motion was declared CARRIED by 12 votes to 6.
    C(ii) 9 Reducing external legal fees by increasing in in-house legal services delivery -297 -551 -551 CARRIED
    C(ii) 10 Ceasing with kitchen and garden waste collection programme -430 -430 -430 A show of hands was called for and the motion was declared CARRIED by 11 votes to 7.

    (iii) Changes to major capital projects subject to resolution D below:

    (a) List of projects no longer budgeted:

    • Stormwater Water Quality
    • International facilities (briefing paper ref #5a)
    • Bledisloe demountable car park (briefing paper ref #4)
    • Community facilities development (briefing paper ref #9)
    • Avondale swimming pool (briefing paper ref #8)

    (b) List of major projects deferred by one year:

    • AMETI construction (briefing paper ref #1)

    • Zoo Te Wao Nui (briefing paper ref #15)

    • Blockhouse Bay library redevelopment

    • Auckland Domain Sandcarpet Installation

    • Waiheke service centre and library

    • Peter Blake memorial

    • Waiheke library redevelopment

    • Mt Roskill library redevelopment

    • Paved area renewals - Citywide

    • Jordan Recreation Centre redevelopment

    • Te Wero island bridge (briefing paper ref #2)

    • Fanshawe Street upgrade for Wynyard Point (briefing paper ref #2)

    • Public space land acquisition for Wynyard Point (briefing paper ref #2)

    • Pedestrian overbridges at Wynyard Point (briefing paper ref #2)

    • Neilson Street transport upgrade (briefing paper ref #7e)

    (c) List of major projects deferred by three years:

    • Hauraki Gulf Islands (briefing paper ref #13)

    • Pah Homestead (briefing paper ref #16)

    • Otahuhu library redevelopment

    • 254 Ponsonby Road open space development

    • Auckland Domain open space development

    • Pt Erin Pool redevelopment

    • Lorne Street Library and Canopy

    • Tiverton and Wolverton Intersection (briefing paper ref #7c)

    • Development with Vision (briefing paper ref #3)

    • Westhaven Marina development

    • Mt Albert Shopping Centre upgrade

    (d) List of major projects partly deferred:

    • AMETI land purchases (briefing paper ref # 1)

    • Cycling and walking projects (briefing paper ref #7b)

    • Transport road and intersection improvement (briefing paper ref #7a)

    • Transport Land purchases (briefing paper ref #7f)

    • Rapid transport land (briefing paper ref #7d)

    • Aotea Square project (briefing paper ref #4)

    • School safety projects

    • Volcanic landscape project

    • Tamaki Edge projects (briefing paper ref #18)

    • Footpath improvements (briefing paper ref #12)

    (e) That the Q Theatre (briefing paper ref #17) be reported to the 12 February 2008 Annual Plan Direction Setting meeting rather than to the Arts Culture and Recreation Committee.

    (f) That the Dominion Road Public Transport project be reported to the Transport Committee for reconsideration given the new State Highway 20 route to the city and "the opening of the Onehunga line".

    D. That the capital projects identified in resolution C (iii) (a), (b), (c), (d) and (f) be referred to the appropriate standing committee for consideration in February 2008, with recommendations to the March 2008 Combined Committees meeting.

    E. That officers be requested to report to the March 2008 Combined Committees meeting on the cost of the capital projects recommended by the standing committees and the level of rate required to fund these projects.

    F. That the 2008/2009 annual plan consultation process be used to amend the Long Term Council-community plan for the revised capital and operating expenditures and funding mechanisms.

    G. That the officers be requested to report to the February 2008 City Development Committee, on revised costs for roading works around Eden Park, specifically the likely reduction in costs if the Sandringham Road widening, and Cricket Avenue extension are cancelled.

    CARRIED

    Councillor Fryer moved the following amendment:

    (iii) Changes to major capital projects:

    (e) That the following projects be continued as currently scheduled and not be deferred:

    • Pah Homestead (briefing paper ref #16)

    A show of hands was called for and the amendment was declared LOST by 12 votes to 7.

    • Otahuhu library redevelopment

    A show of hands was called for and the amendment was declared LOST by 11 votes to 8.

    • Blockhouse Bay library redevelopment

    A show of hands was called for and the amendment was declared LOST by 11 votes to 6, with 2 abstentions.

    • Waiheke service centre and library

    A show of hands was called for and the amendment was declared LOST by 10 votes to 6, with 3 abstentions.

    • Waiheke library redevelopment

    A show of hands was called for and the amendment was declared LOST by 12 votes to 6, with 1 abstention.

    • Mt Roskill library redevelopment

    A show of hands was called for and the amendment was declared LOST by 12 votes to 6, with 1 abstention.

    • Jordan Recreation Centre redevelopment

    A show of hands was called for and the amendment was declared LOST by 11 votes to 6, with 2 abstentions. Councillor Northey did not vote or speak on this item.

    • Footpath improvements (briefing paper ref #12)

    A show of hands was called for and the amendment was declared LOST by 10 votes to 8, with 1 abstention.

    • Community facilities development (briefing paper ref #9)

    A show of hands was called for and the amendment was declared LOST by 13 votes to 6.

    • 254 Ponsonby Road open space development

    A show of hands was called for and the amendment was declared LOST by 12 votes to 6, with 1 abstention.

    • Volcanic landscape project

    A show of hands was called for and the amendment was declared LOST by 11 votes to 7, with 1 abstention.

    The Chairman put the following substantive motion:

    A. That changes to operational expenditure, service levels and revenue from activities be approved as identified below:

    (i) Additional revenues within the 9.8% baseline budget:

    Ref Row Revenue 2008/2009 ($000) 2009/2010 ($000) 2010/2011 ($000)
    A(i) 1 Licence/consent fees increase from 1 July 2008 of 4.5% to reflect increased overheads for processing. -1,500 -1,500 -1,500
    A(i) 2 Additional revenue from properties purchased as part of AMETI project -1,539 -1,539 -1,539
    A(i) 3 Additional revenues from Auckland City's commercial properties

     

    		 -724 -724 -724
    A(i) 4 Additional revenue for City Parks Services -209 -209 -209
    A(i) 5 Additional parking revenues -2,500 -2,500 -2,500

    (ii) Increased service levels within the 9.8% baseline budget:

    Ref Row Initiative/activity 2008/2009 ($000) 2009/2010 ($000) 2010/2011 ($000)
    A(ii) 1 New initiative - outcome of public art review. Administration of new advisory panel for public art. This includes printing, honarariums, reimbursements and promotion. 50 50 50
    A(ii) 2 Service level change - loss of revenue as a result of Marine event centre development 0 322 343
    A(ii) 3 Service level change - increase the standard of cleaning in high profile toilets in the key centres 250 250 250
    A(ii) 4 Service level change - Sponsoring and delivering major and community events 220 220 220
    A(ii) 5 LTCCP Initiative - Economic Growth - Framework for Economic Development Strategy - for research and planning to support the delivery of the economic development strategy. 50 0 0
    A(ii) 6 LTCCP Initiative - Economic Growth - Tamaki Edge/Quality Planning - programme of activities to recruit new companies into the Tamaki innovation precinct and wider Tamaki Edge as part of a city-wide investment promotion strategy 33 0 0
    A(ii) 7 LTCCP Initiative - Economic Growth - Town & Gown: Building city relationships - implementation of actions from the University Quarter plan in partnership with AUT University and the University of Auckland 33 0 0
    A(ii) 8 Education campaign - Food and Green waste: New Initiative to introduce a MRF (materials recovery facility) to divert recyclable solid waste from landfill to MRF 150 150 150
    A(ii) 9 Hazardous collection - share of contribution to ARC: New initiative (approved via the LTCCP process) to continue support to the regional project to collect hazardous waste and recycle, thus reducing waste going to landfill and having a negative impact to the environment. 67 200 200
    A(ii) 10 Waste Education: New initiative approved via the LTCCP process to provide on-going waste education and promotion of the waste minimisation (recycling and composting) in the community 100 150 150
    A(ii) 11 Additional anticipated maintenance costs of council owned berths charged by the marina trust account, offset by increased revenue from beth rentals and savings in berth ownership costs arising from potential sale of berths owned at the Orakei Marina 53 31 31
    A(ii) 12 Support the Isthmus district plan hearings 72 174 0
    A(ii) 13 Additional HR planning and support will be required for Auckland City Council to effectively manage initiatives connected with the 2011 Rugby World Cup. 35 0 0
    A(ii) 14 Renewal of city-wide maintenance contracts 800 0 0

    (iii) (a) Increased service levels/new activities not included in the baseline budget:

    Ref Row Initiative/activity 2008/2009 ($000) 2009/2010 ($000) 2010/2011 ($000)
    A(iii) 3 New initiative - Designation/acquisition pre-work.  200 0 0
    A(iii) 6 Secure asset management of Heritage Resources through improved cataloguing and asset validation. 200 200 60
    A(iii) 7 LTCCP Initiative - Economic Growth Niche industries. Increased service level to further grow and build on existing partnerships and programme of work to catalyse growth in the city's niche industries (additional budget) 50 0 0
    A(iii) 8 LTCCP Initiative - Economic Growth - Availability of right skill sets - Invest in labour market research to understand Auckland city's current and future skill needs and a means to address them. (additional budget) 25 50 0
    A(iii) 9 LTCCP Initiative - Economic Growth - Study of Wealth Drivers - forecast economic growth (additional budget) 50 0 0
    A(iii) 10 LTCCP Initiative - Economic Growth - Sister city relationships - Delivering economic focused initiatives with our international partnerships (additional budget) 50 0 0
    A(iii) 12 Economic Growth - Broadband - Implement WiFi and fibre ducting initiatives 250 0 0
    A(iii) 13 To provide on-going maintenance for Galway recycling facility 50 50 50

    (iii) (b) That further information be provided on the following projects to the 12 February 2008 Annual Plan Direction Setting meeting:

    Ref Row Initiative/activity 2008/2009 ($000) 2009/2010 ($000) 2010/2011 ($000)
    A(iii) 1 Stormwater treatment devices: New initiative approved via the LTCCP process to provide for on-going operational expenditure relating to capital works delivery to maintain newly created stormwater assets at its minimum operative levels of service. 200 300 400
    A(iii) 2 Stormwater pipe network: New initiative approved via the LTCCP process to provide for on-going operational expenditure relating to capital works delivery to maintain newly created stormwater assets at it's minimum operative levels of service. 36 49 61
    A(iii) 4 Service level change (maintain) - increase frequency of street cleaning in high profile centres to meet current levels of service 400 400 400
    A(iii) 5 A new level of service for the inner CBD and 38 other commercial centres that will raise the standard of cleaning and consequently the appearance of the streetscapes. 3,000 5,800 5,800
    A(iii) 11 Development of a funding and implementation plan for establishing a convention centre 100 0 0
    A(iii) 14 Operating expenditures required to prepare for the 2011 Rugby World Cup 145 518 2,510

    B. That it be noted that further reductions in operational service levels, additional revenues and capital expenditure deferrals will be required to achieve a budget for 2008/2009 with a 4.8 percent rate increase.

    C. That it be noted that the following options, which together with an additional $4.7 million of capital projects to be funded from debt rather than surplus, reduce the rate increase requirement to 4.8 per cent:

    (i) (a) Identified additional revenues from existing sources:

    Ref Row Revenue 2008/2009 ($000) 2009/2010 ($000) 2010/2011 ($000)
    C(i) 2 Proposed licence/consent fees increase of 5% from 1 January 2009 to recognise enhanced service levels as a result of Regulatory Programme -860 -1,720 -1,720
    C(i) 3 Additional parking revenue (net) from recruitment of 30 additional parking officers and 3 supporting infringement review advisors, 10 + 1 per year over 3 years -2,000 -4,000 -6,000
    C(i) 4 Additional leasing revenue -58 -58 -58
    C(i) 5 Additional revenue for City Parks Services -528 -83 -679
    C(i) 6 Increased subsidies (75%) relating to School Travel Plans -344 -344 -344

    (i) (b) That further information be provided on the following projects to the 12 February 2008 Annual Plan Direction Setting meeting:

    Ref Row Revenue 2008/2009 ($000) 2009/2010 ($000) 2010/2011 ($000)
    C(i) 1 Further increase to Zoo admission prices -55 -55 -55

    (ii) Identified savings from reduced service levels/ceasing activities:

    Ref Row Reduced expenditure 2008/2009 ($000) 2009/2010 ($000) 2010/2011 ($000)
    C(ii) 1 Reducing the making community facilities more relevant projects based on prioritisation -194 -194 -194
    C(ii) 2 Not continuing with Cadetships Programme. -174 -174 -174
    C(ii) 3 Ceasing proceeding with uncommitted projects. -449 -449 -449
    C(ii) 4 Declining opportunity to join the Beacon Research Consortium -200 0 0
    C(ii) 5 Not filling Climate Change position -100 0 0
    C(ii) 6 Slowing the corporate sustainability initiative -50 0 0
    C(ii) 7 Not filling position around Economic Retail Strategy - -50 0 0
    C(ii) 8 Reducing costs around production and promotion of the LTCCP for public consultation (SOH 12 for, 6 against) -200 -200 -200
    C(ii) 9 Reducing external legal fees by increasing in in-house legal services delivery -297 -551 -551
    C(ii) 10 Ceasing with kitchen and garden waste collection programme -430 -430 -430

    (iii) Changes to major capital projects subject to resolution D:

    (a) List of projects no longer budgeted:

    • Stormwater Water Quality

    • International facilities (briefing paper ref #5a)

    • Bledisloe demountable car park (briefing paper ref #4)

    • Community facilities development (briefing paper ref #9)

    • Avondale swimming pool (briefing paper ref #8)

    (b) List of major projects deferred by one year:

    •  AMETI construction (briefing paper ref #1)

    •  Zoo Te Wao Nui (briefing paper ref #15)

    •  Blockhouse Bay library redevelopment

    •  Auckland Domain Sandcarpet Installation

    •  Waiheke service centre and library

    •  Peter Blake memorial

    •  Waiheke library redevelopment

    •  Mt Roskill library redevelopment

    •  Paved area renewals - Citywide

    •  Jordan Recreation Centre redevelopment

    •  Te Wero island bridge (briefing paper ref #2)

    •  Fanshawe Street upgrade for Wynyard Point (briefing paper ref #2)

    •  Public space land acquisition for Wynyard Point (briefing paper ref #2)

    •  Pedestrian overbridges at Wynyard Point (briefing paper ref #2)

    •  Neilson Street transport upgrade (briefing paper ref #7e)

    (c) List of major projects deferred by three years:

    •  Hauraki Gulf Islands (briefing paper ref #13)

    •  Pah Homestead (briefing paper ref #16)

    •  Otahuhu library redevelopment

    •  254 Ponsonby Road open space development

    •  Auckland Domain open space development

    •  Pt Erin Pool redevelopment

    •  Lorne Street Library and Canopy

    •  Tiverton and Wolverton Intersection (briefing paper ref #7c)

    •  Development with Vision (briefing paper ref #3)

    •  Westhaven Marina development

    •  Mt Albert Shopping Centre upgrade

    (d) List of major projects partly deferred:

    •  AMETI land purchases (briefing paper ref # 1)

    •  Cycling and walking projects (briefing paper ref #7b)

    •  Transport road and intersection improvement (briefing paper ref #7a)

    •  Transport Land purchases (briefing paper ref #7f)

    •  Rapid transport land (briefing paper ref #7d)

    •  Aotea Square project (briefing paper ref #4)

    •  School safety projects

    •  Volcanic landscape project

    •  Tamaki Edge projects (briefing paper ref #18)

    •  Footpath improvements (briefing paper ref #12)

    (e) That the Q Theatre (briefing paper ref #17) be reported to the 12 February 2008 Annual Plan Direction Setting meeting rather than to the Arts Culture and Recreation Committee.

    (f) That the Dominion Road Public Transport project be reported to the Transport Committee for reconsideration given the new State Highway 20 route to the city and "the opening of the Onehunga line".

    D. That the capital projects identified in resolution C (iii) (a), (b), (c), (d) and (f) be referred to the appropriate standing committee for consideration in February 2008, with recommendations to the March 2008 Combined Committees meeting.

    E. That officers be requested to report to the March 2008 Combined Committees meeting on the cost of the capital projects recommended by the standing committees and the level of rate required to fund these projects.

    F. That the 2008/2009 annual plan consultation process be used to amend the Long Term Council-community plan for the revised capital and operating expenditures and funding mechanisms.

    G. That the officers be requested to report to the February 2008 City Development Committee, on revised costs for roading works around Eden Park, specifically the likely reduction in costs if the Sandringham Road widening, and Cricket Avenue extension are cancelled.

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

    For the Motion: Against the Motion:
    Cr Doug Armstrong
    Cr Ken Baguley
    Cr Aaron Bhatnagar
    Cr Mark Donnelly
    Cr Paul Goldsmith
    Deputy Mayor David Hay
    Cr Peseta Sam Lotu-Iiga
    Cr Toni Millar
    Cr Greg Moyle
    Cr Graeme Mulholland
    Cr Noelene Raffills
    His Worship the Mayor    		 Cr Leila Boyle
    Cr Dr Cathy Casey
    Cr Graeme Easte
    Cr Glenda Fryer
    Cr Richard Northey
    Cr Denise Roche

    Councillor Bill Christian was absent.

    The motion was declared CARRIED by 12 votes to 6.

    The meeting adjourned at 3:20pm and reconvened at 3:35pm.

    6.1. UPDATE ON BUDGETS FOR 2008/2009 - OPEX

    This item was incorporated into item 6.

    6.2. 2008/2009 BUDGET - CAPEX

    This item was incorporated into item 6.

  7. Top 2008/2009 ANNUAL PLAN POLITICAL PROCESS

    The Chairman moved:

    1. That the following 2008/2009 annual plan stakeholder forums be noted:
      1. That officers and the Pou Tahuhu (the councillor with the Iwi relationship portfolio) attend the Trust Board meetings for Ngati Whatua, Ngati Rehua and Ngati Paoa (iwi with ahi kaa status) to give a presentation on the Annual Plan (A presentation to also be given to the Tangata Whenua Committee - officer attendance only).
      2. That two Pasifika fono be held - to be hosted by a committee chairperson and staff in conjunction with the Ministry of Pacific Island Affairs and Council's Pacific Advisory Board. The first of the fono will be for Pacific Island Church Ministers as leaders in their community and the second fono a general pacific peoples fono - both meetings to be held at the Fickling Convention Centre.

      3. That individual one on one sessions be held with the General managers with their allocated key business communities (Key stakeholders in the business community are the Employers Manufacturers Association, Auckland Chamber of Commerce, Property Council, Heart of the City and the Automobile Association).

      4. That four community board/public meetings be held in the following areas: Eastern Bays, Avondale, Waiheke and the central business district - to be hosted by a committee chairperson and staff.

      5. That one public meeting be held during the day in the morning to accommodate elderly persons in the Western Springs Garden Community Hall - to be hosted by a committee chairperson and staff.

      6. That one Asian forum be held at the Fickling Convention Centre - to be hosted by a committee chairperson and staff in conjunction with the Asian Network Steering Group and the Department of Internal Affairs, Ethnic Communities Office.

      7. That one youth forum be held in the Town Hall - to be hosted by a committee chairperson, staff and the Auckland City Youth Council, inviting representatives from each of the secondary and tertiary institutions.
      8. That one union forum be held in the Town Hall - to be hosted by staff in conjunction with the PSA.
      9. That a presentation be given to the Gay, Lesbian, Transsexual and Takapui community - officer attendance only.
    2. That the hearings process be noted as being scheduled on the following basis:
      1. Over three days from Tuesday 3 June to Thursday 5 June 2008 commencing at 9.30am, with a reserve day of Friday 6 June 2008. Hearings to be scheduled in the evening depending on the number of submissions received. That hearings be held at the Fickling Centre for 1 day and at the Town Hall for 2 days.
      2. Deliberations to be held on Tuesday, 10 June 2008 from 9.30am to 1pm in the Town Hall or earlier, if the hearing of submissions finishes earlier.
    3. That the General manager finance, in conjunction with the Chairman of the Finance and Strategy Committee and the Democracy advisor, determine suitable times for individual, community board and organisational submitters to present at the annual plan hearings.
    4. That the submission period for the 2008/2009 draft annual plan continue to be one month from 18 April to 20 May 2008.

      Councillor Casey moved the following amendment by way of replacement:

    5. That the following 2008/2009 annual plan stakeholder forums be noted:
      1. Deletion of the words "- officer attendance only".

      2. That a business forum continue to be held with the key business community (Key stakeholders in the business community are the Employers Manufacturers Association, Auckland Chamber of Commerce, Property Council, Heart of the City and the Automobile Association).

      3. That a forum be held with the Gay, Lesbian, Transsexual and Takatapui community. - delete the words "officer attendance only".
      4. That a forum held with environmental, cultural, and social service groups.
      5. That all specified forums and presentations associated with the annual plan be open to elected representatives.

      A show of hands was called for and resulted in a TIE with 8 votes for and 8 votes against, with 2 abstentions.  The Chairman exercised his casting vote against the amendment and it was declared LOST. Councillor Glenda Fryer was absent.

      Councillor Easte moved the following amendment by way of replacement:

    6. That the hearings process be noted as being scheduled on the following basis:
      1. Over three days from Tuesday 3 June to Thursday 5 June 2008 commencing at 9.30am, with a reserve day of Friday 6 June 2008. Hearings to be scheduled in the evening depending on the number of submissions received (That hearings be held at the Fickling Centre for 1 day and at the Town Hall for 2 days).
      2. Deliberations to be held on Tuesday, 10 June 2008 from 9.30am to 1pm in the Town Hall or earlier, if the hearing of submissions finishes earlier.

      A show of hands was called for and the amendment was declared CARRIED by 12 votes to 4, with 2 abstentions.

      The Chairman put the following substantive motion:

    7. That the following 2008/2009 annual plan stakeholder forums be noted:
      1. That officers and the Pou Tahuhu (the councillor with the Iwi relationship portfolio) attend the Trust Board meetings for Ngati Whatua, Ngati Rehua and Ngati Paoa (iwi with ahi kaa status) to give a presentation on the Annual Plan (A presentation to also be given to the Tangata Whenua Committee - officer attendance only).
      2. That two Pasifika fono be held - to be hosted by a committee chairperson and staff in conjunction with the Ministry of Pacific Island Affairs and Council's Pacific Advisory Board. The first of the fono will be for Pacific Island Church Ministers as leaders in their community and the second fono a general pacific peoples fono - both meetings to be held at the Fickling Convention Centre.

      3. That individual one on one sessions be held with the General managers with their allocated key business communities (Key stakeholders in the business community are the Employers Manufacturers Association, Auckland Chamber of Commerce, Property Council, Heart of the City and the Automobile Association).

      4. That four community board/public meetings be held in the following areas: Eastern Bays, Avondale, Waiheke and the central business district - to be hosted by a committee chairperson and staff.

      5. That one public meeting be held during the day in the morning to accommodate elderly persons in the Western Springs Garden Community Hall - to be hosted by a committee chairperson and staff.

      6. That one Asian forum be held at the Fickling Convention Centre - to be hosted by a committee chairperson and staff in conjunction with the Asian Network Steering Group and the Department of Internal Affairs, Ethnic Communities Office.

      7. That one youth forum be held in the Town Hall - to be hosted by a committee chairperson, staff and the Auckland City Youth Council, inviting representatives from each of the secondary and tertiary institutions.
      8. That one union forum be held in the Town Hall - to be hosted by staff in conjunction with the PSA.
      9. That a presentation be given to the Gay, Lesbian, Transsexual and Takapui community - officer attendance only.
    8. That the hearings process be noted as being scheduled on the following basis:
      1. Over three days from Tuesday 3 June to Thursday 5 June 2008 commencing at 9.30am, with a reserve day of Friday 6 June 2008. Hearings to be scheduled in the evening depending on the number of submissions received (That hearings be held at the Fickling Centre for 1 day and at the Town Hall for 2 days).
      2. Deliberations to be held on Tuesday, 10 June 2008 from 9.30am to 1pm in the Town Hall or earlier, if the hearing of submissions finishes earlier.
    9. That the General manager finance, in conjunction with the Chairman of the Finance and Strategy Committee and the Democracy advisor, determine suitable times for individual, community board and organisational submitters to present at the annual plan hearings.
    10. That the submission period for the 2008/2009 draft annual plan continue to be one month from 18 April to 20 May 2008.

    CARRIED

    There being no further business the Chairman declared the meeting closed at 4:55 pm.