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OPEN AGENDA

I hereby give notice that a meeting of the

*COMBINED COMMITTEES

will be held as follows:

DATE: Wednesday, 4 March 2009

Note: If necessary, the meeting will be adjourned to 9.30 am on the following day Thursday, 5 March 2009
TIME: 9:30 am
VENUE: Reception Lounge
  Town Hall Building
  301 Queen Street
  Auckland
Priscilla Steel
DEMOCRACY ADVISOR

Members: *

Cr Douglas Armstrong, QSO Chairperson
His Worship the Mayor, Hon John Banks, QSO
Cr Ken Baguley Deputy Mayor David Hay, JP
Cr Aaron Bhatnagar Cr John Lister, OBE
Cr Leila Boyle Cr Peseta Sam Lotu-Iiga
Cr Dr Cathy Casey Cr Toni Millar, JP
Cr Bill Christian, JP Cr Greg Moyle, E.D.
Cr Mark Donnelly Cr Graeme Mulholland, JP
Cr Graeme Easte Cr Richard Northey, ONZM
Cr Glenda Fryer Cr Noelene Raffills
Cr Paul Goldsmith Cr Denise Roche

* Combined Committees comprises the following committees of council: Arts Culture and Recreation; City Development; Transport; Finance and Strategy; Community Services.


  1. Top APOLOGIES

    At the close of the agenda no apologies had been received.

  2. Top EXTRAORDINARY BUSINESS

    Section 46A(7) of the Local Government Official Information and Meetings Act 1987 (as amended) states:
    "An item that is not on the agenda for a meeting may be dealt with at that meeting if-
    (a) The local authority by resolution so decides; and
    (b) The presiding member explains at the meeting at a time when it is open to the public,-
      (i) The reason why the item is not on the agenda; and
      (ii) The reason why the discussion of the item cannot be delayed until a subsequent meeting."
    Section 46A(7A) of the Local Government Official Information and Meetings Act 1987 (as amended) states:
    "Where an item is not on the agenda for a meeting,-
    (a) That item may be discussed at that meeting if-
      (i) That item is a minor matter relating to the general business of the local authority; and
      (ii) The presiding member explains at the beginning of the meeting, at a time when it is open to the public, that the item will be discussed at the meeting; but
    (b) no resolution, decision, or recommendation may be made in respect of that item except to refer that item to a subsequent meeting of the local authority for further discussion."

    CHIEF EXECUTIVE'S OVERVIEW

  3. Top THE CHIEF EXECUTIVE'S OVERVIEW OF DIRECTION SETTING FOR THE TEN-YEAR PLAN

    David Rankin  
    Chief Executive 19 February 2009

    Providing a report on the proposed Ten-year budget and funding statements, including a proposed average increase in rates of two per cent for 2009/10. The increase meets council's commitment to affordable progress, without any material changes to council's service levels.

    Recommending the Committee notes the changes made to the draft Ten-year Plan for 2009-2019 and approve the draft plan for public consultations.

    [ATTACHMENT 3] Pages 1-6

    BUDGET UPDATE

  4. Top CHANGES TO THE TEN-YEAR PLAN ASSUMPTIONS/GUIDELINES MADE SINCE 18 NOVEMBER DIRECTION SETTING MEETING

    Grant Smith  
    Corporate Planning Manager 18 February 2009

    Updating the Committee on changes to assumptions made on the Ten-year Plan since the 18 November 2008 Direction Setting meeting.

    The Ten-year Plan supports a significant capital expenditure programme with a $532 million spend forecasted in 2009/10.

    Recommending that the Committee adopts the proposed budgets for inclusion in the 2009 - 2019 Ten-year Plan.

    [ATTACHMENT 4] Pages 7-14

  5. Top ACE AND CITY PLANNING FEES AND CHARGES

    Michael Smith  
    Business development manager, Auckland City Environments 4 February 2009

    Providing a report on Auckland City Environments and City Planning’s proposal to increase fees to enable full cost recovery for services with a private benefit in light of increasing operating costs.

    Auckland City has a policy of full cost recovery for services with a private benefit. Services are assessed on a private benefit and public good basis with the private benefit being funded through fees and charges and the public good component funded through general rates.

    The majority of the proposed fees increases fall within the range of 2.5 per cent and 5 per cent and the level of deposits amended to more accurately reflect the real activity cost.

    Recommending that it be noted that various legislation empowers Auckland City Council to recover the reasonable costs it incurs and that the proposed increases to Auckland City Environment and City Planning’s fees and charges be approved.

    [ATTACHMENT 5] Pages 1-26

    POLICIES

  6. Top PROPOSED RATES RELATED POLICIES FOR 2009/10

    Jolene Abrahamson  
    Policy analyst 20 February 2009

    Reporting on the latest proposed levels of rates impacted by decisions made at the October 2008 and November 2008 Long-term Plan Direction Setting meetings regarding the proposed rates-related policy for the 2009/10 financial year.

    Changes from current economic data have resulted in council’s projected rate of inflation for 2009/10 reducing to 2.5 per cent. In addition, the decision to not include in council’s budget for 2009/10 any allowance for salary increases. This reduces the proposed overall citywide rates increase to 2.0 per cent.

    Recent budget information also shows that the refuse collection targeted rate (RCTR) is projected to decrease from $210 to $193 per service for 2009/2010. The level of remission for an approved alternative rubbish service is now projected to decrease from $128 to $113 and increase for an approved alternative recycling service from $71 to around $75. New budget information also projects the level of the new targeted rate for each additional recycling service to be $75.

    New budget information also projects the CBD targeted rate for residential ratepayers to increase from $55 to $57 per residential unit to reflect council’s rate of inflation and to help fund higher development costs associated with the development and revitalisation of the CBD.

    Officers are projecting the council’s discount for early payment of rates to decrease from 3.20 per cent for 2008/09 to around 1.32 per cent for 2009/10.

    Recommending that the Committee confirm the changes stated in the report and that the decisions from this meeting be included in the Draft 2009-2019 Long-term Council Community Plan (LTCCP) for public consultation with the public.

    [ATTACHMENT 6] Pages 1-12

  7. Top DEVELOPMENT CONTRIBUTIONS POLICY 2009: PROPOSED DRAFT POLICY FOR CONSULTATION

    Lyn Voyde  
    Development Contributions Coordinator 12 February 2009

    Reporting on the draft development contributions policy for inclusion in the 2009-19 Ten-year plan for public consultation.

    The purpose of the draft policy is to help fund the costs that the council faces in connection with Auckland's continuing growth. This growth creates a need to improve and expand the city's infrastructure to handle the resulting increase in demand. The policy enables recovery of the council's identified capital costs of growth. This is achieved by requiring development contributions to be paid when certain building and resource consents are granted.

    The main changes to the current policy takes in to account changes suggested by the City Development Committee from December 2008 to February 2009 and accounts for a lower cost of growth, the current economic climate and other factors.

    Recommending that the Committee adopts the changes in the draft development contribution policy, including changes to charging for transport activity citywide to residential and non-residential developments, and delegate to the Chairperson of Combined Committees and the General Manager City Development the authority to make any changes to the draft developments contribution policy to be included in the draft Ten-year Plan.

    [ATTACHMENT 7] Pages 15-24

  8. Top REFINEMENT TO TREASURY MANAGEMENT POLICY FOR 2009 - 2019 LTCCP

    Priscilla Steel  
    Democracy Advisor 19 February 2009

    Providing an extract of the minutes of the Finance and Strategy Committee meeting held on 18 February 2009 where an item on the Refinement to Treasury Management Policy for 2009 - 2019 LTCCP was resolved, inter alia:

    That it be a recommendation to March Combined Committees:

    1. That it be agreed to consult on the following adjustment to the Treasury Management Policy via the draft 2009-2019 Ten-year plan:
      1. permitting borrowing to fund the impacts on ratepayer equity from payments associated with discovered liabilities, eg weathertightness payments, remediation of closed landfill and remediation of other contaminated sites.
    2. That it be noted that this change is in addition to the changes to the Treasury Management Policy endorsed for consultation at its 18 November 2008 meeting.
    3. That it be agreed that the draft Treasury Management Policy wording attached as Appendix I of the "Refinements to Treasury Management Policy for 2009 - 2019 LTCCP" report as set out and amended by resolution D be included in the draft Ten-year plan, with authority to approve any minor wording changes delegated to the Chair of the Finance and Strategy Committee.
    4. That the new Sustainable Debt Policy requirements be that borrowing is permitted, subject to oversight by the treasury management steering group where:
      1. The liability concerned was not previously anticipated or is expected to be considerably higher than previously anticipated;
      2. Funding this operational expenditure from rates would place a significant burden on current ratepayers;
      3. Debt will assist in promoting intergenerational equity by spreading responsibility for funding these issues across generations;
      4. Additionally, 60% of any debt should be repaid over 30 years on a straight line basis; and
      5. That the policy of repaying 60% of debt over 30 years be reviewed during the next review of the Treasury Management Policy.

    Recommending that the Committee agree that the changes in the Treasury Management Policy be included in the draft Ten-year plan.

    [ATTACHMENT 8] Pages 25-36

  9. Top MAINSTREET AND BUSINESS IMPROVEMENT DISTRICTS DRAFT BUDGET 2009-10

    Annie Inwood
    Mainstreet Advisor    		  
    Viju Srinivas
    Project Coordinator    		 16 February 2009

    Providing a report on the 17 mainstreet and business improvement district (BID) programmes, established to foster economic growth, employment opportunities and prosperity in Auckland city.

    Based on the attached draft budgets, a total of $7,568,179.67 (excluding GST) is requested for mainstreet and BID programme operations for the 2009/2010 financial year, to be raised by way of targeted rates levied in the associated mainstreet and BID boundary areas.

    Recommending that the Committee recommends the updated draft mainstreet and BID programme budgets be included in the 2009/10 Draft Annual Plan and Budget.

    [ATTACHMENT 9] Pages 37-42

  10. Top FOLLOW-UP REVIEW OF RATING DIFFERENTIALS AND DEFINITIONS

    Jolene Abrahamson  
    Policy Analyst 20 February 2009

    Responding to concerns raised in a report by the Great Barrier Island (GBI) Community Board at the 18 November 2008 Direction Setting meeting and tabled again at the 18 February 2009 Finance and Strategy Committee meeting concerning the incorporation of land zoning into council’s rating differential policy and Council’s property revaluation methods.

    Recommending that the Committee retain the recommendations of the 18 November 2008 Direction Setting meeting by continuing to base the rating definitions on actual land use instead of zoning and that 2005 valuations for the GBI not be considered as it is not permitted under the Rating Valuations Act and Rating Valuations Rules.

    [ATTACHMENT 10] Pages 13-44

    CHANGES TO CAPEX

  11. Top PROPOSED CHANGES TO CAPITAL EXPENDITURE PROGRAMME

    Grant Smith  
    Corporate planning manager 23 February 2009

    Reporting on the revised Ten-year Plan capital expenditure programme with a $532 million spend currently being forecasted for 2009/10, council’s largest capital investment programme in a single year.

    The 2009/10 capital expenditure programme has been revised based on council’s ability to deliver and on rephasing or increasing funding for priority projects such as the Marine Events Centre, Pah Homestead, Onehunga foreshore upgrade, and construction of the Waiheke library and service centre.

    Subject to approval at Combined Committees, these changes will be reflected in the draft Ten-year Plan document prior to the 26 March 2009 Council meeting.

    A report has also been prepared looking at the development of the elephant precinct at Auckland Zoo. The capital expenditure and operating costs associated with this proposal are not currently reflected in the draft Ten-year Plan document or in the modelling and conclusions reached in this report.

    Recommending that the Committee note the changes in the capital expenditure programme and agrees to the changes to the council’s operating expenditure budget.

    There are seven attachments to this report, two of the attachments will be considered under the confidential section of this agenda.

    [ATTACHMENT 11] Pages 27-72

    RECOMMENDATION OF THE ADOPTION OF THE TEN-YEAR PLAN

  12. Top STATEMENT OF PROPOSAL TEN-YEAR PLAN 2009 - 2019  

    Grant Smith  
    Corporate planning manager 18 February 2009

    Updating the Committee on changes made to the Ten-year Plan since the 18 November 2008 Direction Setting meeting relating to assumptions around council's rate of inflation and other key parameters.

    Recommending that the Committee recommend to Council adoption of the draft 2009 - 2019 Ten-year Plan.

    The draft Ten-year Plan document can be viewed at: http://www.aucklandcity.govt.nz/council/members/committeemeetings/combined/a20090304.asp

    [ATTACHMENT 12] Pages 43-46

  13. Top MARINAS - GOVERNANCE AND USER REPRESENTATION

    Priscilla Steel  
    Democracy Advisor 19 February 2009

    Providing an extract of the minutes of the Finance and Strategy Committee meeting held on 18 February 2009 where an item on the Marinas - Governance and User Representation was resolved, inter alia:

    1. That it be a recommendation to Combined Committees:
      1. That it be noted that the completion of Treasury's rolling review of council's marina assets has identified that a greater commercial focus is needed to improve performance and efficiency, and that creating a marina council controlled organisation is an option for addressing this. That it be further noted that Westhaven Marina is operated commercially, but that the marina also has vital public good aspects and qualities that need to be fully taken into account in its management, including its integrated relationship with adjoining public spaces;
      2. That it be agreed that an option to create a marina council controlled organisation be included for public consultation in the draft 2009-2019 Long-term Council Community Plan;
      3. That it be noted that Council resolved at its 25 September 2008 meeting to establish a holding company responsible for the governance of council assets and activities with commercial objectives, and the intention to consult for each activity transferred into this structure;
      4. That it be noted that the inclusion of a marina council controlled organisation in the holding company structure could provide a more efficient governance structure and aligns with the holding company's intended role; and
      5. That it be agreed that an option to include a marina council controlled organisation in the holding company should be included for public consultation in the draft 2009-2019 Long-term Council Community Plan.

    Recommending that the Committee consider the creation of a marina council controlled organisation as a holding company and that it be included for public consultation in the draft 2009-2019 Long-term Council Community Plan.

    [ATTACHMENT 13] Pages 47-62

  14. Top STATEMENTS OF PROPOSAL RELATING TO THE ESTABLISHMENT OF A HOLDING COMPANY

    Kirsty Colquhoun  
    Policy Analyst 4 February 2009

    Outlining three draft statements of proposal for inclusion in the draft Long-term Council Community Plan (LTCCP):

    1. the establishment of a holding company;
    2. the establishment of subsidiaries within the proposed holding company; and
    3. the establishment of a council-controlled organisation to manage the council's marina assets.

    The policy on council's Auckland International Airport Limited (AIAL) shareholding is also being included in the draft LTCCP and this policy contains a provision for those shares to be transferred to the holding company.

    Recommending that the Committee review the draft statements of proposal and consider including the statement of proposal entitled "Establishing a holding company" in the draft Long-term Council Community Plan (LTCCP)".

    [ATTACHMENT 14] Pages 63-76

  15. Top EXCLUSION OF THE PUBLIC : LOCAL GOVERNMENT OFFICIAL INFORMATION AND MEETINGS ACT 1987

    Priscilla Steel  
    Democracy Advisor

    27 Feb 2009
    Section 48, Local Government Official Information and Meetings Act 1987:

    The following motion is submitted for consideration:

    That the public be excluded 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.

    Item No. General subject of each matter to be considered 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
    C1. PROPOSED CHANGES TO CAPITAL EXPENDITURE PROGRAMME Public conduct of matter would be likely to result in disclosure of information for which good reason to withhold exists under section 7. Pah Homestead [Attachment 3]

    Section 7(2)(h)

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

    In particular, detailed cost estimates for components of capital works which if known could make it more difficult for council to negotiate prices for this work and estimates of funding contributions that might be received by other parties, that either have not as yet been approached or that need to be negotiated.

    Ten Year Parks Acquisition Programme [Attachment 7]

    Section 7(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.

    In particular, the commercially sensitive information in relation to acquisitiond contained in the report, if released, would place the parties who participated in the process at a disadvantage in carrying out commercial activities.

    Section 7(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, to enable the Council negotiate the purchase price of park land.

    		 Section 48(1)(a)

    The public conduct of the part of the meeting would be likely to result in the disclosure of information for which good reason for withholding exists under section 7.

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