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Council member and meetings
Finance and Strategy Committee
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OPEN AGENDA

 I hereby give notice that a meeting of the

FINANCE AND STRATEGY COMMITTEE

will be held as follows:

DATE: Wednesday, 20 May 2009
TIME: 9:30am
VENUE: Committee Room, Level 15
  Civic Administration Building
  1 Greys Avenue
  Auckland
Soo Jean Kok
ACTING 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, 15 April 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 REPORTS REQUESTED/PENDING

    Soo Jean Kok  
    Acting Democracy Advisor 11 May 2009

    Reporting on the reports requested/pending for the information of the Committee.

    Recommending that the reports requested/pending of the Acting Democracy Advisor, dated 11 May 2009, be received, noting the changes listed.

    [ATTACHMENT 5] Pages 1 - 2

  6. Top BRISBANE BUSINESS MISSION - REPORT BACK AFTER TRAVEL

    Hon John Banks, QSO  
    His Worship the Mayor 8 May 2009

    Reporting back to the Committee on the travel to Brisbane from 1-4 April 2009 by a delegation of Auckland business leaders travelled to Brisbane to celebrate the 20th anniversary of the sister city relationship and to reciprocate an inbound business mission led by the Lord Mayor of Brisbane in October 2008.

    Recommending that the report, which outlines the successful business mission to Brisbane and the cost and benefit to council, be received.

    [ATTACHMENT 6] Pages 3 - 8

  7. Top PERFORMANCE REPORT FOR MARCH 2009 INCLUDING ANNUAL PLAN PROGRESS, FINANCIAL RISKS AND EFFICIENCY GAINS

    Joy Buckingham  
    Operational Reporting Manager 30 April 2009

    Providing the first performance report to the Committee that incorporates information supplied in the monthly financial report and the quarterly efficiency gains report, which outlines council's operating and capital expenditure.

    Recommending that the Committee notes the operating expenditure is $8.0 million favourable to budget, the year to date capital expenditure under spend is $35.3 million against budget, and organisational efficiency gains is $7.3 million.

    [ATTACHMENT 7] Pages 9 - 36

  8. Top MARCH 2009 QUARTER TREASURY OUTCOMES VERSUS RISK LIMITS

    Jason Isherwood  
    Funds Manager, Treasury 6 May 2009

    Reporting on the Treasury Group's compliance with Auckland City Council's Treasury Management Policy (TMP) and the strategic risk limits contained in the Treasury Operating Manual, and its performance versus benchmarks for the quarter ended 31 March 2009.

    Recommending that the Committee notes that during the March 2009 quarter, the Treasury Group operated within the policy limits established by the TMP and as at 31 March, the cost of the debt portfolio was 7.18% and the return on the Trusts and Reserves portfolio was 7.09%.

    [ATTACHMENT 8] Pages 37 - 46

  9. Top FOLLOW-UP REVIEW OF PROPOSED "FARMING AND OPEN SPACE" RATING DIFFERENTIAL DEFINITION

    Jolene Manford  
    Policy Analyst 1 May 2009

    Outlining a report on reducing the property size threshold from 5ha to 4ha to reflect the considerable number of properties on Great Barrier Island that have been subdivided into 4ha, which is closer to the traditional ten acre block. The intention of the proposed change is to encourage landowners to preserve properties that are large and primarily vacant or bush blocks.

    Recommending that the Committee notes that vacant land and residential land greater than 5ha on Waiheke, Great Barrier and Rakino islands should be incorporated into the Farming and open space differential. Further recommending that the Committee notes that the proposed farming and open space definition was included in the Draft 10-year Plan and an analysis of all rates-related submissions will be reported to the June 2009 Combined Committees.

    [ATTACHMENT 9] Pages 47 - 72

  10. Top TRUST AND RESERVES

    Mark Donovan  
    Corporate Finance Manager  

    Reporting to the Committee on details of the nature of existing trusts, the terms of statutory reserves and the performance of trust investments. Also outlining the application of individual trust funds, statutory reserves and in particular, the ability to apply the Onehunga Endowment Fund toward enhancements for the Onehunga foreshore project.

    Recommending that the Committee notes that the recent changes to the Charities Registration Act means that council could set up a charitable trust or apply for donee status for specific receipts, that the existing trusts and reserves will continue to be protected following the proposed creation of the Auckland Council, and that income from the Onehunga Endowment Fund could be applied to the Onehunga foreshore project.

    [ATTACHMENT 10] Pages 73 - 88

  11. Top AUCKLAND CITY COUNCIL FORMER PENSIONER HOUSING PORTFOLIO - UPDATE FROM HOUSING NEW ZEALAND CORPORATION

    Christine Smith  
    Property Officer 27 April 2009

    Updating on the status of the project and the work undertaken by Housing New Zealand Corporation since they purchased the pensioner housing properties.

    Recommending that the report be noted.

    [ATTACHMENT 11] Pages 89 - 96

  12. Top ARTNL'S STATEMENT OF INTENT FOR THE THREE YEAR PERIOD COMMENCING 1 JULY 2009

    Kris Munday  
    Policy Analyst 4 May 2009

    Providing a report on the review of the Auckland Regional Transport Network Limited's (ARTNL) draft 2009 statement of intent (SOI).

    Recommending that the Committee approves the ARTNL's SOI and that the SOI be approved by shareholders' written resolution rather than at a meeting of the ARTNL shareholders representative group. Further recommending that the Committee authorises the Chief Executive to sign the relevant shareholders' resolution approving the new SOI on behalf of council.

    [ATTACHMENT 12] Pages 97 - 112  

  13. Top DIRECTORS REVIEW AND APPOINTMENT SUBCOMITTEE RESOLUTION - REVISION OF THE AUCKLAND CITY COUNCIL'S POLICY ON APPOINTMENT AND RENUMERATION OF THE BOARD MEMBERS OF COUNCIL ORGANISATIONS AND THE BOARD MEMBERS' GUIDE

    Priscilla Steel  
    Democracy Advisor 11 May 2009

    Providing an extract of the minutes of the Directors Review and Appointment Subcommittee (DRAS) meeting held on 29 April 2009 where an item on the Revision of the Auckland City Council's Policy on Appointment and Remuneration of Board Members of Council Organisations, and the Board Members' guide was resolved, inter alia:

    That it be a recommendation to the Finance and Strategy Committee, to recommend to Council:

    1. That the proposed amendments to the policy on appointment and remuneration of board members of council organisations, to bring the document up to date with current council decisions and practice, for distribution to all members of council boards, be approved, subject to final editorial being reviewed by Councillor Armstrong and Councillor Northey:
      1. Attachment 1 page 13, Item 3.1:
        • Change in bullet point 2 from "previous experience" to "ability".
        • Add new bullet point "ability to think and develop strategic policy"
        • Add new bullet point "ensuring the sustainable management of the resources and finances of the organisation".
      2. Replacement to Attachment 1 page 13, item 3.2:
        Replace "private companies" with "private sector companies" and repeat throughout the document.
      3. Replacement to Attachment 1 page 19, item 4.4.2 after the first two sentences:
        "Council makes decisions on elected members' appointments to outside organisations at the start of each election cycle (refer to Attachment 1 pages 28 and 29)."
      4. Replacement to Attachment 1 page 20, item 4.4.2 last sentence:
        With a clause describing the new process by which Auckland City Council appoints two representatives to the recently established Tourism Auckland Appointments Panel.
      5. Replace second paragraph to Attachment 1 page 21, item 5.1:
        That the final decision on board members' remuneration is made by a resolution of the Finance and Strategy Committee. When making its decision, the Committee will take into account (but is not bound by) market rates and reviews of remuneration levels covering boards':
      6. Replacement to Attachment 1 page 21, item 5.3
        Elected members will be reimbursed for mileage at 70 cents per kilometre and other expenses for meetings attended but no meeting allowance or board members' fee will be payable to elected members.
      7. Addition to Attachment 1 page 29, Schedule Three:
        Mainstreet Programmes, the appointee column for each programme listed should read "1 Councillor and 1 Community Board Member".
      8. Replacement to Attachment 1 page 29, Schedule Three:
        Town Hall Organ Trust appointee column from "Mr Doug Astley" to "1 external nominee".
      9. Replacement to last sentence of Attachment 1 page 30, schedule Three under Tourism Auckland Trust Board:
        With a clause describing the new process by which Auckland City Council appoints two representatives to the recently established Tourism Auckland Appointments Panel.
    2. That the updated board members' guide for distribution with the above board appointment and remuneration policy that ensures all board members understanding of their roles, responsibilities and relationships with council are maintained in line with current procedures, be approved, subject to final editorial being reviewed by Councillor Armstrong and Councillor Northey:
      1. Addition to Attachment 1 page 27, Schedule Two:
        Add clause at the end of this section to reflect that public interest and confidentiality requirements will be considered when reviewing Statement of Intent (SOI) reporting.
      2. Amend last paragraph of Attachment 2 page 41, item 5.2:
        To clarify that Auckland City Council can remove board members from office by an ordinary resolution passed at a council meeting.
      3. Addition to Attachment 2 page 41, item 5.2:
        Add clause at the end of this section to clarify that Auckland City Council does not make payments for redundancy compensation to board members who have been removed from boards.
      4. Addition to Attachment 2 page 41, item 5.4:
        Add the word "normally" after "therefore" in the last sentence.
    3. That the introduction of independent and external board reviews normally every two years, with each review tailored to the current circumstances relevant to each board at the time of the review, be approved.
    4. That the Chairperson of the Directors Review and Appointment Subcommittee be delegated to notify the chairs of Auckland City Council boards of the changes to these documents, pending Council's approval.

    Recommending that the resolutions from the 29 April 2009 DRAS be considered.

    [ATTACHMENT 13] Pages 113 - 164  

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

    Soo Jean Kok  
    Acting Democracy Advisor 14 May 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 DIRECTORS REVIEW AND APPOINTMENT SUBCOMMITTEE RESOLUTION - APPOINTMENTS AND REAPPOINTMENTS FOR 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)(a)

    The withholding of the information is necessary to protect the privacy of natural persons, including that of a deceased person.

    In particular, the report contains specific information about members of Auckland City Council's boards.

    		 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 REVIEW OF THE EDGE® RISK EVALUATION CRITERIA, OPERATING LOSS MITIGATION AND REQUEST FOR WORKING CAPITAL 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 information on the working capital and commercial production strategies of THE EDGE®. Disclosing such information would disadvantage the commercial activity of THE EDGE®in a competitive 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.
    C3 DELEGATED DECISIONS OF THE GROUP MANAGER PROPERTY AND PROPERTY MANAGEMENT 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)(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 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.