Skip navigation
Council member and meetings
Finance and Strategy Committee
Back to contents AGENDA ATTACHMENTS

OPEN AGENDA

I hereby give notice that a meeting of the

FINANCE AND STRATEGY COMMITTEE

to discuss Council controlled organisations will be held as follows:

DATE: Wednesday, 25 March 2009
TIME: 9:30am
VENUE: Committee Room, Level 15
  Civic Administration Building
  1 Greys Avenue
  Auckland
Priscilla Steel
DEMOCRACY ADVISOR

Members:

Cr Douglas Armstrong, QSO [Chairperson]
Cr Paul Goldsmith [Deputy Chairperson]
Cr Aaron Bhatnagar
Cr Dr Cathy Casey
Cr Mark Donnelly
Cr Peseta Sam Lotu-Iiga
Cr Richard Northey, ONZM

Ex Officio:

His Worship the Mayor, Hon John Banks, QSO
Deputy Mayor, David Hay, JP

  1. Top APOLOGIES

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

  2. Top CONFIRMATION OF MINUTES

    The minutes of the Finance and Strategy Committee meeting held on Wednesday, 18 March 2009 to be confirmed as a true and correct record.

  3. 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."

  4. Top 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.

  5. Top REVIEW OF METROWATER'S PERFORMANCE FOR THE HALF YEAR 2008/09

    Catherine Syme  
    Policy Analyst 25 February 2009

    Reporting on Metro Water Limited's (Metrowater) performance for the half year ending 31 December 2008. Metrowater has reported a Net Profit Before Tax (NPBT) of $6.033 million for the half-year, $3.099 million below budget due to lower than expected revenue from sales and from the Network Upgrade Charge. Metrowater has exceeded its half year targets in relation to three out of four of the key performance indicators set out in the 2008/09 Statement of Intent (SOI) and has achieved significant reductions in Unaccounted for Water (UfW) in 2007/08; however, the rate of improvement has slowed.

    Recommending that the Committee notes Metrowater's half yearly performance, and notes the potential impact on charging for conveying trade waste through local sewers that needs to be addressed following the decision by the Royal Commission on Auckland's governance.

    [ATTACHMENT 5] Pages 1-28

  6. Top AUCKLAND INTERNATIONAL AIRPORT LTD INTERIM RESULT

    Kris Munday  
    Policy Analyst 3 March 2009

    Providing a report on Auckland International Airport Ltd (AIAL) interim result for the first half of the 2008/09 financial year, summarising the company's financial and non-financial performance, the dividend payment and its outlook.

    The interim dividend is 3.75 cents per share and council's receipt will be $5.8 million. Brokers expect that AIAL's full-year dividend for 2008/09 will be 8.2 cents per share, unchanged from last year.

    Recommending that the Committee notes that AIAL achieved a good operating result for the six months to 31 December 2008 and agrees that council's interim dividend receipt is in line with expectations.

    Further recommending that it be noted that council's total dividend receipt for the 2008/09 year is lower than budgeted at $9.7 million, as AIAL increased its 2007/08 interim dividend to make use of surplus imputation credits that would have been lost following a takeover, and reduced its final 2007/08 dividend to offset this increase.

    [ATTACHMENT 6] Pages 29-34

  7. Top REVIEW OF THE EDGE®'S PERFORMANCE FOR THE HALF-YEAR ENDING 31 DECEMBER 2008

    Neil Huang  
    Treasury Advisor 3 March 2009

    Outlining summary of the performance of THE EDGE® for the half-year ending 31 December 2008 based on the financial statements in its half-yearly report.

    Recommending that the Committee notes that THE EDGE® reported a net operating deficit of $515,790 for the first half of the financial year 2008/09, after making reserve fund transfers and receiving council funding.

    Further recommending that it be noted that THE EDGE® is on track to meet all but two of the key performance targets set out in their 2008/09 Statement of Intent.

    [ATTACHMENT 7] Pages 35-44

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

    Priscilla Steel  
    Democracy Advisor 19 Mar 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. REVIEW OF THE EDGE®'S PERFORMANCE FOR THE HALF-YEAR ENDING 31 DECEMBER 2008 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 EDGE®'s commercial activities take place in a very competitive environment. Disclosure of sensitive information such as profit margin and sales numbers will disadvantage THE EDGE® in the competition.

    		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. PROPOSAL TO PROVIDE THE EDGE® WITH WORKING CAPITAL FUNDING 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)(i)

    The withholding of the information is necessary to protect information where the making available of the information would disclose a trade secret.

    In particular, the report contains trade information related to THE EDGE®'s commercial investment, which, if released to the public, could prejudice and disadvantage THE EDGE®'s commercial position.

    		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.

    C3. REVIEW OF THE PARKING ADVISORY BOARD'S PERFORMANCE FOR THE SECOND QUARTER 2008/2009 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)(h)

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

    In particular, the report contains material that in a competitive environment, competing with privately owned car parks, and disclosure of strategic intent could have an adverse impact on the market.

    		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.

    C4. REVIEW OF THE PROPERTY ENTERPRISE BOARD'S PERFORMANCE FOR THE HALF-YEAR ENDING 31 DECEMBER 2008 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)(h)

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

    In particular, the report contains information about potential property transactions that would place council at a disadvantage in carrying out commercial activities if released to the public.

    		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.

    C5. REVIEW OF WATERCARE'S PERFORMANCE FOR THE QUARTER ENDING 31 DECEMBER 2008 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)(h)

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

    In particular, the report contains capital and operating expenditure information relating to suppliers, contractors and other third parties, which if released to the public, would prejudice and disadvantage Watercare Services Limited's commercial position.

    		 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.

    C6. INITIAL REVIEW OF WATERCARE'S 2009 FUNDING PLAN 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)(i)

    The withholding of the information is necessary to enable the local authority to carry on, without prejudice or disadvantage, negotiations (including commercial and industrial negotiations).

    In particular, the report contains information which if disclosed has the potential to prejudice or disadvantage the negotiations with Watercare.

    		 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.