APOLOGIES
An
apology has been received from Councillor Donnelly.
CONFIRMATION OF MINUTES
The
minutes of the Finance and Strategy Committee meeting held on Wednesday, 20
August 2008 to be confirmed as a true and correct record subject to the
following addition to item 6, Electoral System and Maori Representation, to
read:
"Councillors Richard Northey and Cathy Casey requested that their vote against
resolutions A and B be recorded".
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." |
PUBLIC FORUM
A
period of time (approximately 20 minutes) is set aside for members of the public
to address the meeting on matters within its delegated authority. A maximum of
5 minutes per item is allowed, following which there may be questions from
members.
At
the close of the agenda no requests to speak had been received.
REPORTS REQUESTED PENDING
| Priscilla Steel |
|
| Democracy Advisor |
10 September 2008 |
Providing the reports requested pending for the information of the Committee.
Recommending that the report be received.
ANNUAL REPORT 2007/2008
| Ravi Ganesh |
|
| Corporate Finance Manager |
9 September 2008 |
Reporting to the Committee on the Annual Report 2007/2008 which demonstrates
Council's actual performance in relation to its Annual Plan 2007/2008 as
required by the Local Government Act 2002 and also providing a summary of
Council's approach to sustainability using the Global Reporting Initiative (GRI)
indicators.
Due
to higher than anticipated operating revenue from Council services and
non-operating revenue from vested assets, capital subsidies, development and
financial contributions, Council's operating surplus and net non-operating
revenue totalled $165m, $26m above budget.
Recommending that the Committee recommends to Council adoption of the Annual
Report 2007/2008 and that the Committee delegate non-material changes to the
Annual Report to the Chairperson of Finance and Strategy Committee and the
General Manager Finance. Also recommending that the annual reports of Downtown
Marina Limited, Westhaven (Existing Marina) Trust, Westhaven (Marina Extension)
Trust and Westhaven Marina Limited for the year ended 30 June 2008 be adopted.
Further recommending that the Committee resolve that the 2007/2008 operating
surplus variance of $11m be used to fund future operating expenditure.
TRUSTS AND RESERVES
| Ravi Ganesh |
|
| Corporate Finance Manager |
7 August 2008 |
Providing an overview of Auckland City administered funds for the year ended 30
June 2008 and noting that the trusts earned a net income of $22.8m.
Recommending that the Committee approves the distribution of $17.3m for the year
ended 30 June 2008 in accordance with the terms of the respective trusts.
| [ATTACHMENT 7] |
Pages 7-12 |
Q THEATRE - CONTRACT CONDITIONS
| Leigh Redshaw |
|
| Manager, Partnerships and Funding |
5 September 2008 |
Providing the Committee with the terms and conditions of
the Agreement Recording Assistance Auckland City Will Provide for the New
Theatre Initiative between Auckland City Council and Q Theatre that provide
the necessary protections and safeguards for Council as it moves forward with
the Q Theatre project.
The key provisions in the agreement that ensure that the
project cannot proceed without Council being satisfied that the project can
succeed are:
- Council must approve the designs prior to
an application for a building consent being lodged;
- Council must approve the construction
contract being let, but only once it is satisfied that sufficient funds have
been raised from all resources to cover the budgeted costs.
Recommending that the Committee note the Agreement
Recording Assistance Auckland City Will Provide for the New Theatre Initiative,
dated 4 December 2006, is a comprehensive agreement, providing significant
protections and safeguards for Auckland City Council, including project control
group, probity, project design and project funding and that it be recommended to
the appropriate committees of Council for approval of the conditions laid out
under the agreement.
| [ATTACHMENT 8] |
Pages 13-18 |
UPDATE ON POLICY ISSUES FOR 2009-2019 LONG-TERM COUNCIL COMMUNITY PLAN (LTCCP)
| Greg Webb |
|
| Financial and Revenue Strategy Manager |
5 September 2008 |
Updating the Committee on the high-level initial analysis of key funding issues
and options that are being investigated for the 2009-2019 Long-term Council Community Plan (LTCCP).
Recommending that the Committee notes the recommendations in the report and
confirms that:
- investigation to fund the new expenditure component of the Rugby World Cup
operational programme continue;
- $2
million of the refuse collection targeted rate surplus be used to reduce the
targeted rate revenue requirement in 2009/2010;
- the next step of the long-term general rate differential strategy, which
transfers around $2.7 million from non-residential groups to the residential
group will be applied for 2009/2010; and
- council's extended rates
rebate scheme be replaced from a grant with a rates remission policy.
| [ATTACHMENT 9] |
Pages 19-34 |
REPORT ON THE EFFICIENT AND CAPABLE STRATEGY
| Hadas Wittenberg |
|
| Group Manager |
10 September 2008 |
Reporting to the Committee on the key elements of the Efficient and Capable
Council Strategy that was refined with respect to the strategy benefit
statement, priorities and measures that demonstrate stronger connections between
the Council's overall vision and the priority projects and initiatives Council
undertakes.
Recommending that the Committee notes the development of the Long-term Council
Community Plan (LTCCP) 2009-2019 based on the organisation's seven strategies
and the further development and refinement of the Efficient and Capable Council
Strategy.
| [ATTACHMENT 10] |
Pages 35-46 |
JUNE 2008 QUARTER TREASURY OUTCOMES VERSUS RISK LIMITS
| Jason Isherwood |
|
| Funds Manager |
15 August 2008 |
Reporting on Auckland City Council's compliance with its Funds Management Policy
as at the quarter ended 30 June 2008, noting that overall there was full
compliance with the strategic risk limits.
There were mixed results achieved versus benchmarks on the debt and investment
portfolios for the financial year:
- The cost of Auckland City Council's
group (including Metrowater) debt portfolio, which grew from $133.7m to
$323.33m, was 9.45%, marginally higher than the benchmark cost of 9.36%;
- The return on the $14.67m Trusts & Reserves portfolio
was 6.72%, slightly higher better than the benchmark return of 6.57%.
Recommending that it be noted that the Treasury Group operated within the policy
limits established by the Treasury Management Policy and that the interest
expense for 2007/2008 financial year was $21.39m versus budget of $20.89m and
there were mixed results achieved versus benchmarks for the 2007/2008 financial
year.
| [ATTACHMENT 11] |
Pages 47-54 |
DEVELOPMENT OF THE ONEHUNGA FORESHORE MASTER PLAN
| Richard Denney |
|
| Senior Landscape Architect |
7 September 2008 |
Seeking approval from the Committee for unbudgeted expenditure to enable the
commencement of the Onehunga Foreshore Master Plan that will be reported to the
Long-term Council Community Plan (LTCCP) process to consider the allocation of
capital funding for the delivery of the Onehunga foreshore development.
Recommending that the Committee acknowledge Council's commitment to the
enhancement of the Onehunga foreshore and lagoon and that the Committee approve
the unbudgeted operational expenditure of $120,000 for the purpose of leading
the development of a master plan for the Onehunga foreshore and lagoon.
| [ATTACHMENT 12] |
Pages 55-58 |
ESTABLISHMENT OF HOLDING COMPANY
| Kirsty Colquhoun |
|
| Policy Analyst |
10 September 2008 |
Outlining the high-level benefits and costs/risks of establishing a holding
company for a range of Council assets and activities.
Recommending that the Committee note that owning and managing key council assets
and activities through a holding company is consistent with best practice and
has the potential to provide many governance benefits for Auckland City Council
and that the Committee approve the initial establishment of a holding company,
on the basis that no assets or activities are to be transferred to the holding
company at this stage.
| [ATTACHMENT 13] |
Pages 59-74 |
EXEMPTION FOR THE SUBSIDIARY ORGANISATIONS OF THE AUCKLAND REGIONAL TRANSPORT NETWORK LIMITED GROUP FROM COUNCIL-CONTROLLED ORGANISATIONS STATUS
| Adam Milina |
|
| Treasury Advisor |
28 August 2008 |
Recommending that three organisations in which Auckland City Council has an
interest (and are subsidiaries of The Auckland Regional Transport Network
Limited (ARTNL) group be exempted from council-controlled organisation status
under section 7 of the Local Government Act 2002 on the grounds that the
benefits of applying the required level of monitoring would be outweighed by the
costs, and that current reporting arrangements are appropriate:
- ARTNL Harbour Berths Limited;
- ARTNL Metro Limited;
- ARTNL Britomart Limited.
| [ATTACHMENT 14] |
Pages 75-80 |
INFORMATION TECHNOLOGY DRAFT ASSET MANAGEMENT PLAN
| Warren McIver |
|
| ITC Consultant |
10 September 2008 |
Recommending that the
Committee consider the following review of growth and lifecycle replacement of
IT assets costs for the Information Technology Asset Management Plan (AMP):
- That the IT capital budget does not
increase over the period of the plan for growth reasons
- That the IT capital budget does not
increase over the period of the plan for IT lifecycle renewal reasons
- That the IT lifecycle replacement projects
over the period of the plan offer savings of approximately $13.4 million in
capital expenditure but that severe risks exist if the replacement projects do
not proceed.
- That the major Organisational Development
portfolio capital requirements over the period of the plan are discretionary
activities, and continue the Council's policy of optimising the benefits
achieved within the funding constraints that prevail.
| [ATTACHMENT 15] |
Pages 81-84 |
PROPERTY ASSET MANAGEMENT PLAN EXPENDITURE OPTIONS
| Peter Walker |
|
| Assets Planner |
2 September 2008 |
Recommending that the Committee consider the following proposed cost reductions,
noting the consequential effects, for the Property Asset Management Plan (AMP):
- Renewal options - total of $7.944 million
over 10 years of which $4.444 is offered as saving options for the first three
years of the proposed 10-year planning period;
- Re-phasing options - planned budgets for UDC House Level 2 fit out be re-phased, saving $500,000 in the first three years
of the proposed 10-year planning period.
- Development with Vision - re-phasing of
programme and a reduction of budget, saving $129.8 million in the first three
years and $139.8 million over the extended life of the revised programme.
| [ATTACHMENT 16] |
Pages 85-94 |
BUSINESS CASE FOR TRAVEL
| John Lister |
|
| Councillor |
29 August 2008 |
Seeking the approval from the Committee to provide funding for the total cost of
$1,835 for Councillor Lister, as Deputy Chair of Transport Committee, to visit
Toronto and San Francisco as part of his study on Metropolitan city transport
systems.
Recommending that the Committee approve the proposed travel plan and also that
Councillor Lister report his findings to the Transport Committee.
| [ATTACHMENT 17] |
Pages 95-98 |
DELEGATED DECISIONS OF THE PROPERTY GROUP MANAGER
| Priscilla Steel |
|
| Democracy Advisor |
10 September 2008 |
Providing a list of decisions made under the Group manager
Property's delegation for the month of August 2008.
Recommending that the decisions made under the Group
manager Property's delegation be noted.
| [ATTACHMENT 18] |
Pages 99-100 |
EXCLUSION OF THE PUBLIC : LOCAL GOVERNMENT OFFICIAL INFORMATION AND MEETINGS ACT 1987
| Priscilla Steel |
|
| Democracy Advisor |
12 September 2008 |
| 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.
This resolution is made in reliance on Section 48(1)(a) of the Local
Government Official Information and Meetings Act 1987 and the particular
interest or interests protected by section 6 or section 7 of that Act which
would be prejudiced by the holding of the whole or relevant part of the
proceedings of the meeting in public, as follows:
| 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. |
Q THEATRE PROJECT UPDATE - RESOLUTIONS FROM ARTS CULTURE RECREATION
COMMITTEE |
Public conduct of matter would be likely
to result in disclosure of information for which good reason to withhold
exists under section 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.
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, this report contains
information that may affect the ability of Q Theatre to secure funding.
|
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. |
| C2. |
DELEGATED DECISIONS OF THE PROPERTY GROUP MANAGER |
Public conduct of matter would be likely
to result in disclosure of information for which good reason to withhold
exists under section 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 report contains
references to the property's value and information that may impact on
the property owner's commercial activities; identification of the site
and contract terms which form the basis of negotiations between council
and the landowner; sensitive information about council's proposed
intentions for the site, which could prejudice or disadvantage its
commercial activities. |
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. |
