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MINUTES OF AN EXTRAORDINARY Meeting of the finance and Strategy committee

HELD ON TUESDAY, 12 FEBRUARY 2008 AT 9:34AM

PRESENT:	Councillor	Douglas	Armstrong, QSO	[Chairperson]
	His Worship the Mayor Hon John		Banks, QSO	[from 9.40am, item 6; until 12.15pm, item 3]
	Councillors	Ken	Baguley
		Aaron	Bhatnagar
		Leila	Boyle
		Dr Cathy	Casey
		Bill	Christian, JP	[from 9.50am, item 6.2]
		Mark	Donnelly
		Graeme	Easte
		Glenda	Fryer	[until 10.31am, item 6.4; from 10.36am, item 6.4]
		Paul	Goldsmith	[until 12.29pm, item 3; from 12.30pm, item 3]
	Deputy Mayor	David	Hay, JP	[until 12.23pm, item 3; from 12.28pm, item 3]
		Peseta Sam	Lotu-Iiga	[until 12.23pm, item 3; from 12.26pm; item 3]
		Toni	Millar, JP	[until 12.03pm, item 4; from 12.07pm, item 4]
		Greg	Moyle
		Graeme	Mulholland, JP	[until 10.14am, item 6.3; from 10.16am, item 6.3; until 12.25pm, item 3; from 12.31pm, item 3]
		Richard	Northey, ONZM	[until 10.25am, item 6.3; from 10.29am, item 6.4; until 12.45pm, item 3]
		Noelene	Raffills	[until 10.15am; item 6.2; from 11.07; item 6.5]
		Denise	Roche

1. APOLOGIES

   That the apology from Councillor Christian for lateness be accepted.

   CARRIED

2. EXTRAORDINARY BUSINESS

   2.1 EXTRAORDINARY BUSINESS ITEM - PUBLIC FORUM - Q THEATRE PROJECT

   The Chairman advised that an extraordinary item of business was required for consideration at the 12 February 2008 Annual Plan Direction Setting meeting regarding the Q Theatre Project to allow the appropriate interested parties to each provide a concise five minute presentation to Councillors to ensure that Councillors are fully informed before making a decision. This is the only opportunity that the affected groups will have to address the Council prior to the Combined Committees meeting in March 2008.

   That a public forum extraordinary business item be added to the agenda as item 6 to allow the appropriate interested parties to each provide a concise five minute presentation to Councillors regarding the Q Theatre Project to ensure that Councillors are fully informed before making a decision.

   CARRIED

   That Items  6, 6.1, 6.2, 6.3, 6.4, 6.5 and 4 be taken at this point.

   CARRIED

3. UPDATE ON BUDGETS FOR 2008/2009

   1. That the Zoo Board be requested to investigate ways of improving its financial position to make the 50 cent increase in its non-adult casual admission price unnecessary and this be reported back to March 2008 Combined Committees meeting.

   CARRIED

   The Chairman moved:

   2. That:

   1. the funding of the following initiatives not be included in the draft 2008/2009 Annual Plan:

   Initiative/activity	Impact on rates
   	2008/2009 ($000)	2009/2010 ($000)	2010/2011 ($000)
   Stormwater treatment devices: Consequential operational expenditure component to increase existing service levels for new initiatives approved via the LTCCP process to provide stormwater treatment devices.	200	300	400
   Stormwater pipe network: New initiative approved via the LTCCP process to provide for on-going operational expenditure to maintain newly created or vested stormwater assets at existing operative levels. (i.e. maintain increased network length)	36	49	61
   A new level of footpath cleaning service for the inner CBD and 38 other commercial centres that will raise the standard of cleaning and consequently the appearance of the streetscapes	3,178	6,379	7,011
   Operating expenditures required to prepare for the 2011 Rugby World Cup	145	-	-

   2. it be noted that there are risks in not funding these items listed in the draft 2008/2009 Annual Plan, however, it is the view of officers that these risks are manageable.

   3. That:

   1. the funding of the following initiatives be included in the draft 2008/2009 Annual Plan:

   Initiative/activity	Impact on rates
   	2008/2009 ($000)	2009/2010 ($000)	2010/2011 ($000)
   Increase frequency of street cleaning in high profile centres, through the provision of foot orderlies, to meet current levels of service	400	400	400
   Development of a funding and implementation plan for establishing new economic initiatives	100	0	0

   2. officers report the criteria and selection process used for the selection of the town centres to receive increased street cleaning, to the Arts, Culture and Recreation Committee, and that an opportunity be given for Community Boards to both propose additional Town Centres such as Mt Albert, or to prioritise Town Centres within their wards.
   3. the Arts, Culture and Recreation Committee be delegated the authority to select and approve the areas to receive the additional street cleaning.

   4. That officers report to the Long Term Council Community Plan Direction Setting meeting in October 2008 on the effectiveness of education and enforcement activities on achieving a major improvement in the cleanliness and appearance of commercial centre streetscapes before any further consideration is given to the introduction of any new level of footpath service.
   5. That it be noted that a decision on operating expenditure from 2009/2010 around the Rugby World Cup 2011 event is not required at this time and officers will report to the April 2008 Arts, Culture and Recreation Committee on a package of Rugby World Cup 2011 related initiatives (It is suggested that any recommendations around funding from 2009/2010 be deferred to that committee).

   Councillor Boyle moved the following amendment:

   3. That the funding of the following initiatives be included in the draft 2008/2009 Annual Plan:

   Initiative/activity	Impact on rates
   	2008/2009 ($000)	2009/2010 ($000)	2010/2011 ($000)
   Increase frequency of street cleaning in high profile centres, through the provision of foot orderlies, to meet current levels of service	400	400	400
   Development of an education and enforcement programme on littering and rubbish dumping in order to achieve a major improvement in the cleanliness and appearance of commercial centre streetscapes	100	0	0

   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 was absent.

   The amendment was declared LOST by 10 votes to 8.

   The Chairman put the following substantive motion:

   2. That:

   1. the funding of the following initiatives not be included in the draft 2008/2009 Annual Plan:

   Initiative/activity	Impact on rates
   	2008/2009 ($000)	2009/2010 ($000)	2010/2011 ($000)
   Stormwater treatment devices: Consequential operational expenditure component to increase existing service levels for new initiatives approved via the LTCCP process to provide stormwater treatment devices.	200	300	400
   Stormwater pipe network: New initiative approved via the LTCCP process to provide for on-going operational expenditure to maintain newly created or vested stormwater assets at existing operative levels. (i.e. maintain increased network length)	36	49	61
   A new level of footpath cleaning service for the inner CBD and 38 other commercial centres that will raise the standard of cleaning and consequently the appearance of the streetscapes	3,178	6,379	7,011
   Operating expenditures required to prepare for the 2011 Rugby World Cup	145	-	-

   2. it be noted that there are risks in not funding these items listed in the draft 2008/2009 Annual Plan, however, it is the view of officers that these risks are manageable.

   3. That:

   1. the funding of the following initiatives be included in the draft 2008/2009 Annual Plan:

   Initiative/activity	Impact on rates
   	2008/2009 ($000)	2009/2010 ($000)	2010/2011 ($000)
   Increase frequency of street cleaning in high profile centres, through the provision of foot orderlies, to meet current levels of service	400	400	400
   Development of a funding and implementation plan for establishing new economic initiatives	100	0	0

   2. Officers report the criteria and selection process used for the selection of the town centres to receive increased street cleaning, to the Arts, Culture and Recreation Committee, and that an opportunity be given for Community Boards to both propose additional Town Centres such as Mt Albert, or to prioritise Town Centres within their wards.
   3. the Arts, Culture and Recreation Committee be delegated the authority to select and approve the areas to receive the additional street cleaning.

   4. That officers report to the Long Term Council Community Plan Direction Setting meeting in October 2008 on the effectiveness of education and enforcement activities on achieving a major improvement in the cleanliness and appearance of commercial centre streetscapes before any further consideration is given to the introduction of any new level of footpath service.
   5. That it be noted that a decision on operating expenditure from 2009/2010 around the Rugby World Cup 2011 event is not required at this time and officers will report to the April 2008 Arts, Culture and Recreation Committee on a package of Rugby World Cup 2011 related initiatives (It is suggested that any recommendations around funding from 2009/2010 be deferred to that committee).

   CARRIED

4. Q THEATRE PROJECT UPDATE

   [ATTACHMENT 4A]

   The Chairman moved:

   1. That it be a recommendation to Combined Committees that the implementation of 13(ii)(A) and (B) of the resolution passed on 20 September 2007 (below) be delayed, excluding the release of up to $200,000 to be used to fund a resource consent for the proposed theatre to facilitate the application to proceed for central government funding:

   13 (ii) New Theatre Initiative / Q Theatre

   1. That Q Theatre be authorised to drawdown a further $700,000 against the approved capital grant of $4.6 million for the specific purpose of advancing design work and obtaining building consents, and that the Heads of Agreement be varied accordingly to record this variation to the contract.
   2. That council further fund the Q theatre project to the extent of $4.6 million in the 2008/2009 financial year provided that, to ensure value for money, the venue can and will meet some of the needs of Auckland Theatre Company.

   2. That it be noted, in the event of central government funding not being available by the end of July 2008, it is unlikely that the Q Theatre project, with its increased costs will continue and that the Q Theatre acknowledges its requirement to fund any difference between Council's contribution of $9.2 million and the eventual project cost.
   3. That in light of the significant increase in costs, and the issues raised around theatre priorities to meet wider theatre user needs, there is a need to reconsider the best value for investment Auckland City Council could make for the theatre industry as a whole.
   4. That the current budget provision and the site set aside for the Q Theatre development be retained for theatre facilities and a final decision made:

   1. when an update of the venues research is completed to check the priority for any new theatre given new issues have arisen since this was last updated;
   2. noting there is general agreement among most stakeholders (users and venue providers) on the priority for new theatre facilities;
   3. noting there is greater certainty that the investment provides sufficient value given that council will fund one theatre only at this time.

   Councillor Northey moved the following amendment:

   1. That it be a recommendation to Combined Committees that the implementation of 13(ii)(A) and (B) of the resolution passed on 20 September 2007 (below) be delayed, excluding the release of $200,000 to be used to fund a resource consent for the proposed theatre to facilitate the application to proceed for central government funding and that the remaining $500,000 drawdown be released after the March 2008 Combined Committees meeting unless that meeting resolves otherwise.
   2. That it be noted that in the event of central government funding not being available, it is unlikely that the Q Theatre project, with its increased costs will continue.
   3. That:

   1. the current budget provision and the site set aside for the Q Theatre development be retained for facilities there;
   2. it be noted that the proposed investment provides sufficient value;
   3. Council will fund only one theatre capital project at this time.

   4. That officers be requested to report to the June 2008 Combined Committees meeting on whether, and to what extent, the proposed capital grant and the proposed annual operating grant for the Q Theatre should be increased, taking into account the views of users, venue providers and other interested parties.

   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 a recommendation to Combined Committees that the implementation of 13(ii)(A) and (B) of the resolution passed on 20 September 2007 (below) be delayed, excluding the release of up to $200,000 to be used to fund a resource consent for the proposed theatre to facilitate the application to proceed for central government funding:

   13 (ii) New Theatre Initiative / Q Theatre

   1. That Q Theatre be authorised to drawdown a further $700,000 against the approved capital grant of $4.6 million for the specific purpose of advancing design work and obtaining building consents, and that the Heads of Agreement be varied accordingly to record this variation to the contract.
   2. That council further fund the Q theatre project to the extent of $4.6 million in the 2008/2009 financial year provided that, to ensure value for money, the venue can and will meet some of the needs of Auckland Theatre Company.

   2. That it be noted, in the event of central government funding not being available by the end of July 2008, it is unlikely that the Q Theatre project, with its increased costs will continue and that the Q Theatre acknowledges its requirement to fund any difference between Council's contribution of $9.2 million and the eventual project cost.
   3. That in light of the significant increase in costs, and the issues raised around theatre priorities to meet wider theatre user needs, there is a need to reconsider the best value for investment Auckland City Council could make for the theatre industry as a whole.
   4. That the current budget provision and the site set aside for the Q Theatre development be retained for theatre facilities and a final decision made:

   1. when an update of the venues research is completed to check the priority for any new theatre given new issues have arisen since this was last updated;
   2. noting there is general agreement among most stakeholders (users and venue providers) on the priority for new theatre facilities;
   3. noting there is greater certainty that the investment provides sufficient value given that council will fund one theatre only at this time.

   A show of hands was called for and the motion was declared CARRIED unanimously by 19 votes to 0.

5. ANNUAL PLAN/LONG-TERM COUNCIL COMMUNITY PLAN (LTCCP) EDITORIAL WORKING PARTY

   The Chairman moved:

   That the Annual Plan/Long-term Council Community Plan (LTCCP) working party, consisting of Councillor Armstrong (Chairman), Councillor Northey, and Councillor Hay, be delegated authority to approve the communications plan, creative design and budget for the draft and final annual and LTCCP plans and the annual and LTCCP reports.

   Councillor Fryer moved the following amendment:

   That the Annual Plan/Long-term Council Community Plan (LTCCP) editorial working party, consisting of Councillor Armstrong (Chairman), Councillor Northey, Councillor Boyle, and Councillor Hay, be delegated authority to approve the communications plan, creative design and budget for the draft and final annual and LTCCP plans and the annual and LTCCP reports.

   LOST

   The Chairman put the following substantive motion:

   That the Annual Plan/Long-term Council Community Plan (LTCCP) working party, consisting of Councillor Armstrong (Chairman), Councillor Northey, and Councillor Hay, be delegated authority to approve the communications plan, creative design and budget for the draft and final annual and LTCCP plans and the annual and LTCCP reports.

   CARRIED

6. PUBLIC FORUM - Q THEATRE PROJECT

   [ATTACHMENT 6]

   A list of attendees in support of the Q Theatre was tabled at the meeting.

   6.1. Q THEATRE PROJECT - COLIN MCCOLL AND LESTER MCGRATH, AUCKLAND THEATRE COMPANY

   [ATTACHMENT 6.1]

   That Mr Colin McColl and Mr Lester McGrath, Auckland Theatre Company be thanked for their presentation regarding the Q Theatre project.

   CARRIED

   6.2. Q THEATRE PROJECT - Greg Innes, CEO, The Edge, and Richard Waddel, Chair of the Aotea Centre Board of Management (TRADING AS THE EDGE)

   [ATTACHMENT 6.2]

   That Mr Greg Innes, CEO, The Edge, and Mr Richard Waddel, Chair of the Aotea Centre Board of Management (Trading as The Edge) be thanked for their presentation regarding the Q Theatre project.

   CARRIED

   6.3. Q THEATRE PROJECT - Alan Sorrell, Chair, Creative NZ

   That Mr Alan Sorrell, Chair, Creative NZ be thanked for his presentation regarding the Q Theatre project.

   CARRIED

   6.4. Q THEATRE PROJECT - Roseanne Meo, Chairperson, Auckland Philharmonia Orchestra

   That Ms Roseanne Meo, Chairperson, Auckland Philharmonia Orchestra be thanked for her presentation regarding the Q Theatre project.

   CARRIED

   6.5. Q THEATRE PROJECT - David Appleby, Chairman Q Theatre Board, and Geoff Clews, Q Theatre Director

   That Mr David Appleby, Chairman Q Theatre Board, and Mr Geoff Clews, Q Theatre Director be thanked for their presentation regarding the Q Theatre project.

   CARRIED

   The meeting adjourned at 11:15am and reconvened at 11:35am.

   There being no further business the Chairman declared the meeting closed at 12:55 pm.