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Finance and Strategy Committee
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MINUTES OF A MEETING OF THE
FINANCE AND STRATEGY COMMITTEE

HELD ON WEDNESDAY, 20 AUGUST 2008 AT 9:35AM

PRESENT: Councillors Douglas Armstrong, QSO Chairperson
    Aaron Bhatnagar Deputy Chairperson
[from 9:42am, item 4; until 11:02am, item 11; from 11:10am, item 12; until 12:30pm, item C8; from 12:31pm, item C9]
    Dr Cathy Casey [until 9:50am, item 4.1; from 9:55am, item 5; until 10:35am, item 7; from 10:40am, item 8; until 11:50am, item C1]
    Mark Donnelly  
    Paul Goldsmith [until 10:45am, item 9; from 10:52am, item 9; until 12:25pm, item C8; from 12:29pm, item C8]
    Peseta Sam Lotu-Iiga [until 11:19am, item 12; from 11:22am, item 12; until 12:48pm, item C2; from 12:10pm, item C3]
    Richard Northey, ONZM  
  Deputy Mayor David Hay [from 10:15am, item 5; until 10:23am, item 6; from 10:25am, item 6; until 10:39am, item 6; from 10:46am, item 9; until 11:21am, item 12; from 11:26am, item 12, until 12:25pm, item C8]
         
ALSO PRESENT: Councillors Leila Boyle [until 11:50am, item C1]
    Graeme Easte [[from 11:52am, item C1; until 12:08pm, item C2]
    Glenda Fryer [from 11:18am, item 12; until 11:50am, item C1]
    Toni Millar [from 11:22am, item 12; from 12:31pm, item C9]
    Denise Roche [from 9:55am, item 5; until 11:49am, item C1]

  1. Top APOLOGIES

    That the apologies from Deputy Mayor Hay and Councillor Bhatnagar for lateness and Councillor Casey for early departure be accepted.

    CARRIED

  2. Top CONFIRMATION OF MINUTES

    That the minutes of the Finance and Strategy Committee meeting held on Wednesday, 25 June 2008, be confirmed as a true and correct record.

    CARRIED

  3. Top EXTRAORDINARY BUSINESS

    3.1 REPORTS REQUESTED PENDING

    That an extraordinary item of business regarding Reports Requested Pending be considered as item 17 as the item was inadvertently omitted from the agenda during the compilation process.

    CARRIED

    3.2 DELEGATED DECISIONS OF THE PROPERTY GROUP MANAGER

    That an extraordinary item of business regarding Delegated Decisions of the Property Group Manager be considered as item 18 as the item was inadvertently placed in the confidential section of the agenda in agenda attachment C12.

    CARRIED

  4. Top PUBLIC FORUM

    4.1. COUNCIL SPENDING - STEPHEN MOORE

    Stephen Moore tabled a document and spoke to it regarding Council spending.

    [ATTACHMENT 4.1]

    That Stephen Moore be thanked for his presentation.

    CARRIED

  5. Top ORGANISATIONAL EFFICIENCY GAINS FOR THE TWELVE MONTHS ENDED 30 JUNE 2008

    1. That the organisational efficiency gains for the twelve months ended 30 June 2008 report by the Acting Group Manager Corporate Finance and Planning, dated 13 August 2008 be received, noting gains of $19.9 million and revenue increases of $4.9 million, which contributes to council's operating surplus being approximately $11 million above budget.
    2. That the Finance and Strategy Committee commends the organisation's commitment to continuing savings, efficiency gains, and quality of service improvements, noting savings such as:
      • Rationalisation of council's vehicle fleet [$200,000 savings in 2008/2009, ongoing savings of $566,000 from 2009/2010];
      • Collection and disposal of waste [$1 million of annual savings]
      • Solar powered technology for school 40km/hr signage [$300,000 of annual savings]

    CARRIED

  6. Top ELECTORAL SYSTEM AND MAORI REPRESENTATION

    The Chairperson moved:

    That the Finance and Strategy Committee recommends to Council:

    1. That in view of Council's submission to, and the ongoing deliberations by the Royal Commission, it would be inappropriate to make changes to the electoral and Maori representative system at this present time.
    2. That accordingly, the existing first past the post electoral system and ward representation continue.

    Councillor Casey moved the following amendment:

    That the Finance and Strategy Committee recommends to Council that a Maori ward be established for the 2010 triennial election of Council members.

    A division was called for, voting on which was as follows:

    For the Amendment: Against the Amendment:
    Cr Dr Cathy Casey
    Cr Richard Northey    		 Cr Douglas Armstrong
    Cr Aaron Bhatnagar
    Cr Mark Donnelly
    Cr Paul Goldsmith
    Cr Peseta Sam Lotu-Iiga
    Deputy Mayor David Hay

    His Worship the Mayor was absent.

    The amendment was declared LOST by 6 votes to 2.

    Councillor Northey moved the following amendment:

    That the Finance and Strategy Committee recommends to Council that the electoral system for the 2010 triennial election of Council members be the Single Transferable Vote electoral system.

    The above amendment was put by a show of hands and declared LOST by 6 votes to 2.

    The Chairperson put the following substantive motion:

    That it be a recommendation to Council:

    1. That in view of Council's submission to, and the ongoing deliberations by the Royal Commission, it would be inappropriate to make changes to the electoral and Maori representative system at this present time.
    2. That the existing first past the post electoral system and ward representation continue.

    CARRIED

  7. Top DRAFT ONE PLAN FOR THE AUCKLAND REGION (VERSION ONE)

    1. That the Finance and Strategy Committee notes the content of this report and the Regional Sustainable Development Forum (RSDF) adopted draft One Plan for the Auckland region version one.
    2. That the Finance and Strategy Committee supports One Plan for the Auckland region (version one) and the seven programmes of action. These programmes recognise the significant scale of projects and investment being made by Auckland City Council to transform Auckland into an international city-region.

      That it be a recommendation to Council:

    3. That Council endorses One Plan for Auckland (version 1), subject to the following feedback being provided to the Regional Sustainable Development Forum (RSDF):
      1. Auckland City Council is supportive of the draft One Plan for the Auckland region (version one). The development of One Plan is an important achievement by the region as it provides a single strategic framework and plan of action. The seven programmes of action are supported by Auckland City Council as they recognise important existing decisions, commitments, and opportunities for Auckland's transformation to an internationally competitive city-region.
      2. The development of an infrastructure plan for Auckland is supported by Auckland City Council. Auckland City Council would however encourage the RSDF to expand the scope of the infrastructure plan from the three areas of energy, transport and water (see One Plan pages 30-35, Attachment 1). The region's future prosperity and competitiveness will be influenced by the planning and orderly sequencing and funding of all infrastructure, not just in the areas of energy, transport and water. The limitation of the infrastructure plan to these three areas does not duly recognise other important regional infrastructure for Auckland, for example, social and cultural infrastructure. 
        Experiences of other region's and international cities is that infrastructure plans cover the full scope of infrastructure, often including the commitments of all tiers of government.
        Auckland City Council would encourage the RSDF to agree to a broadening of the infrastructure plan scope to address all infrastructure in Auckland.
      3. Auckland City Council is supportive of the future priorities identified in One Plan for the Auckland region (see One Plan pages 36-37, Attachment 1). In considering the issues facing the region, Auckland City Council is of the view that the list of future priorities should be broadened to include:
        • Natural environment - volcanic cones, Hauraki Gulf, harbours
        • Strengthened economic strategy identifying clear priorities for Auckland domestically and internationally
        • Business centres and job creation ("a good place to do business")
        • Settlement strategy for immigrants, migrants and refugees
        • Affordable housing through housing choice and diversity

      Council notes and is supportive of the intended evolution of One Plan. The strategic filters and assessment criteria used to define the programmes of action in version one, should be continued in the development of future versions of One Plan. Whilst the filters and criteria will evolve with each version of One Plan, it provides the RSDF and regional stakeholders with clear, consistent and transparent logic for decisions and prioritised action on future One Plan for Auckland programmes of action.

    4. That Council's Regional Sustainable Development Forum (RSDF) members be delegated authority to sign off council's response to the RSDF and present council's views on the draft One Plan for Auckland region (version one) at the September and October RSDF meetings.

    CARRIED

  8. Top REMISSIONS OF RATES PENALTY 2007/2008

    That the report entitled "Rates, Penalty Remissions 2007/2008", dated 15 July 2008, totalling $524,532 for 2007/2008 made under delegated authority in terms of Auckland City Council's policy on the Remission of Rates Penalties, be received.

    CARRIED

  9. Top RATES, REMISSIONS

    That the report entitled "Rates, Remissions", dated 22 July 2008, totalling $2,455,597.50 made under delegated authority in terms of Auckland City Council's policy on the Remission of Rates, be received.

    CARRIED

  10. Top FIRST REVIEW INFORMATION TECHNOLOGY ASSET MANAGEMENT PLAN

    1. That the draft Information Technology (IT) asset management plan report of the Information Technology Centre (ITC) Consultant dated 13 August 2008, be received, noting that options will be presented to the September Finance and Strategy Committee meeting and officers will recommend budgets for the Long-term Council Community Plan (LTCCP) to the November Annual Plan Direction Settings (APDS) meeting that will incorporate the asset management plans and other options.
    2. That the Finance and Strategy Committee notes the levels of service outlined in the asset management plan for the 2009-2019 Long-term Council Community Plan (LTCCP) period.

    CARRIED

  11. Top FIRST REVIEW MARINA ASSET MANAGEMENT PLAN

    1. That the Marina asset management plan report of the Strategic Asset Planning Manager, dated 5 August 2008 be received, noting that options will be presented to the September Finance and Strategy Committee meeting and officers will recommend budgets for the Long-term Council Community Plan (LTCCP) to the November Annual Plan Direction Settings (APDS) APDS meeting that will incorporate the asset management plans and other options.
    2. The Finance and Strategy Committee approves the levels of service outlined in the asset management plan for the 2009-2019 Long-term Council Community Plan (LTCCP) period.

    CARRIED

    [Secretarial note: Councillor Bhatnagar declared a conflict of interest and left the meeting for this item]

  12. Top FIRST REVIEW PROPERTY ASSET MANAGEMENT PLAN

    The Chairperson moved:

    1. That the first review property asset management plan report of the Asset Planner, dated 5 August 2008, be received, noting that options will be presented to the September Finance and Strategy Committee meeting and officers will recommend budgets for the Long-term Council Community Plan (LTCCP) to the November Annual Plan Direction Settings (APDS) meeting that will incorporate the asset management plans and other options.
    2. The Finance and Strategy Committee approves the levels of service outlined in the asset management plan for the 2009-2019 Long-term Council Community Plan (LTCCP) period.

    CARRIED

    Councillor Casey moved the following amendment by way of addition:

    That Council's ongoing service levels reflect a progressive improvement to our Greenstar rating of, and public accessibility to, Council administration and other buildings.

    The above amendment was put by a show of hands and declared LOST by 6 votes to 2.

    The Chairperson put the following substantive motion:

    1. That the first review property asset management plan report of the Asset Planner, dated 5 August 2008, be received, noting that options will be presented to the September Finance and Strategy Committee meeting and officers will recommend budgets for the Long-term Council Community Plan (LTCCP) to the November Annual Plan Direction Settings (APDS) meeting that will incorporate the asset management plans and other options.
    2. The Finance and Strategy Committee approves the levels of service outlined in the asset management plan for the 2009-2019 Long-term Council Community Plan (LTCCP) period.

    CARRIED

  13. Top FIRST REVIEW THE EDGEŽ ASSET MANAGEMENT PLAN

    1. That the draft EDGEŽ asset management plan report of the Director Assets for THE EDGEŽ dated 12 August 2008, be received, noting that options will be presented to the September Finance and Strategy Committee meeting and officers will recommend budgets for the Long-term Council Community Plan (LTCCP) to the November Annual Plan Direction Settings (APDS) meeting that will incorporate the asset management plans and other options.
    2. The Finance and Strategy committee notes the levels of service outlined in the asset management plan for the 2009-2019 Long-term Council Community Plan (LTCCP) period.

    CARRIED

  14. Top THE EDGE® DRAFT ANNUAL REPORT 2007/2008

    1. That the Finance and Strategy Committee notes that THE EDGEŽ produced a net operating surplus of $20,519 for the year ending 30 June 2008, after taking into account grant income and reserve fund transfers.
    2. That the Finance and Strategy Committee notes that THE EDGEŽ met all the key performance targets set out in the 2007/08 statement of intent for 2007/08 financial year.

    CARRIED

  15. Top DECLARATION OF LAND TO BE SURPLUS AND SOLD - PART 594 GREAT NORTH ROAD

    That it be a recommendation to Council:

    1. That the vacant land of approximately 100m2, being the rear part of Lot 42, DP 20423, Certificate of Title 780/262, be declared surplus to Council's public work requirements and disposed of in accordance with the provisions of sections 40 and 42 of the Public Works Act 1981.
    2. That the terms and conditions of the agreement for the disposal of the surplus land, be approved by the Group manager property under delegation. That these include approval of the design and materials used in the proposed development, re-routing of the waste pipes and maintaining access to the waste pipes and the rear of the public convenience building for maintenance purposes.

    CARRIED

    That Item 17 and 18 were taken at this time.

    CARRIED

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

    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. The EdgeŽ Draft Annual Report 2007/08 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 commercially sensitive information relating to THE EDGEŽ such as the financial outcomes of individual events and/or contribution margins, which if release to the public, would disadvantage THE EDGEŽ in the very competitive market in which it operates.

    		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. Auckland Festival 2009 - Relationship With The EdgeŽ 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)(h)

    The withholding of the information is necessary to enable the local authority to carry out, without prejudice or disadvantage, 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, the report contains information relating to third parties, that if released to the public, would compromise the Auckland Festival's ability to carry out negotiations and commercial activities in relation to the organising Auckland Festival 2009.

    		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. Rates, Maori Land 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 assessment numbers and property locations of properties for which rates are recommended to be written off which could lead to the identification of the property owners concerned.

    		 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. Rates, Postponed 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 names & addresses of ratepayers with postponed rates and the amount of postponed rates.

    		 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. Debt Write-Off 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, if this report is made public it would hinder Council's ability to enforce payment and collection in the future.

    		 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. Eden Park Trust Board (EPTB) - Loan Compliance 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, this report contains information from the Eden Park Trust Board, which if released to the public, would prejudice their 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.

    C7. Eden Park Trust Board - Mortgagee Approval To Property Transactions 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, this report contains financial information from the Eden Park Trust Board, which if released to the public, would prejudice their 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.

    C8. Delegations Register - Asset Disposals 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, Council is involved in commercial negotiations and delegated levels of agreement are sensitive points of leverage in ensuring Council gets best value."

    		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.

    C9. Stanley Street, Parnell Lease 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.

    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 financial information relating to a contractual situation with a third party, that if released to the public, would compromise council's ability to carry out its commercial activities in a competitive environment.

    		 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.

    C10. Supplier Recommend-ation report for Theatre Seat Replacement at the Civic Theatre 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.

    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, the report contains financial and commercial information relating to the contractor, that if released to the public, would compromise council's commercial activities and ability to negotiate.

    		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.

    C11. Metrowater Board Recruitment Process 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 a candidate to the Metrowater board.

    		 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.

    C12. 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.

    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.

    1. That the Deputy Chair Peter Stubbs, Chief Executive Greg Innes, Chief Financial Officer Tony Larsen and Board member Victoria Carter of THE EDGEŽ be permitted to remain at this meeting after the public has been excluded for confidential item C1, because of their knowledge of the financial position of THE EDGEŽ. This knowledge, which will be of assistance in relation to the matter to be discussed, is relevant to that matter because the committee will be discussing THE EDGEŽ's financial performance.

    CARRIED

  17. Top REPORTS REQUESTED PENDING

    The Democracy Advisor tabled the Reports Requested Pending.

    [ATTACHMENT 17]

    That the Reports Requested Pending by the Democracy Advisor be received.

    CARRIED

  18. Top DELEGATED DECISION OF THE PROPERTY GROUP MANAGER

    The Democracy Advisor tabled the delegated decisions document that was included with the attachment at item C12 in the confidential section of the agenda.

    [ATTACHMENT 18]

    That the decisions made under the Group Manager Property's delegation, as tabled, be noted.

    CARRIED

    There being no further business the Chairperson declared the meeting closed at 12:37pm.