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

MINUTES OF A MEETING OF THE
FINANCE AND STRATEGY COMMITTEE

HELD ON WEDNESDAY, 10 DECEMBER 2008 AT 9:34AM

PRESENT: Councillors: Douglas Armstrong, QSO Chairperson
  Deputy Mayor David Hay, JP [from 9:48am, item 4.1; until 10:51am, item 11; from 10:53am, item 11; until 11:44pm, item 13]
    Peseta Sam Lotu-Iiga Deputy Chairperson
        [from 9.42am, item 4.1; until 12:33pm, item 8]
    Aaron Bhatnagar  
    Dr Cathy Casey  
    Paul Goldsmith [until 10:10am, item 4.2; from 10:28am, item 12; until 11:28am, item 10; from 11:29am, item 10]
    Richard Northey, ONZM [until 11:26am, item10; from 11:28am, item 10]
ALSO PRESENT:   Leila Boyle  
    Bill Christian, JP [until 12:14am, item C3]
    Graeme Easte [from 10:07am, item 4.2]
    Glenda Fryer [until 12:05am, item C3]
    Toni Millar, JP [from 10:30am, item 12; until 11:19am, item 10]
    Denise Roche [from 10:05am, item 4.2; until 11:50am, item 13; from 12:12pm, item C3]

  1. Top APOLOGIES

    That the apologies from Councillor Donnelly for non-attendance and Councillor Lotu-Iiga for lateness be accepted.

    CARRIED

  2. Top CONFIRMATION OF MINUTES

    That the minutes of the Extraordinary Long-term Council Community Plan (LTCCP) Direction Setting of the Finance and Strategy Committee meeting held on Tuesday, 7 October 2008 and Tuesday, 18 November 2008, and the Finance and Strategy Committee meeting held on Wednesday, 19 November 2008 be confirmed as true and correct records.

    CARRIED

  3. Top EXTRAORDINARY BUSINESS

    There was no extraordinary business.

  4. Top PUBLIC FORUM

    4.1. TREVOR DUNN – WESTHAVEN MARINA BOARD OF TRUSTEES

    [Attachment 4.1A]

    That Mr Trevor Dunn, Chairman, and Mr Bill Endean, Committee member, of the Westhaven Marina Users Association be thanked for their presentation on the Westhaven Marina Board of Trustees and notes that officers will be reporting on the issues raised, related governance and financial issues early in 2009.

    CARRIED

    4.2. STEPHEN MOORE – RATES

    [Attachment 4.2]

    The Chairperson moved:

    That Mr Stephen Moore be thanked for his presentation on Auckland City's rates.

    Councillor Northey moved the following amendment by way of addition:

    1. That the prayer of the petition be referred to the March 2009 meeting of the Combined Committees and the following proposals be specifically considered at that meeting:
      1. that there be no increase in Metrowater prices in 2009-2010 and until all charitable payments are eliminated; and
      2. that there be a substantial reduction in both capital and operational expenditure proposed to be associated with the Rugby World Cup 2011, with the reduction being appreciably more than sufficient to eliminate the proposed targeted rate of $23 per household per year across the city.

    [Secretarial note: The amendment was ruled out of order on the grounds of irrelevance for the item under discussion by the Chairperson on the advice of officers, and a substituted amendment proposed by Councillor Northey was disallowed by the Chairperson for the same reason.]

    The Chairperson put the substantive motion:

    That Mr Stephen Moore, Ms Josephine Bartley and Mr Gavin Logan be thanked for their presentation on Auckland City's rates.

    CARRIED

    [Secretarial note: Items 12, 11, 10, 13, part of 14, and C1 and C3 were taken at this time in that order.]

  5. Top REPORTS REQUESTED PENDING

    That the reports requested pending of the Democracy Advisor, dated 3 December 2008, be received with the following change:

    • Change Row 1 from "Withdrawn" to read "Deferred until Sep-09" as recommend to Council by the Remuneration Working Party.

    CARRIED

  6. Top DELEGATED DECISIONS OF THE GROUP MANAGER PROPERTY

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

    CARRIED

  7. Top FINANCIAL REPORT FOR THE FOUR MONTHS ENDED 31 OCTOBER 2008

    That the Finance and Strategy Committee notes the financial report for the four months ended 31 October 2008 highlighting:

    1. (i) council's performance in keeping its year to date operating expenditure $7.2 million favourable to budget;
    2. (ii) a year to date capital expenditure under spend of $12.3 million against budget, comprising:
      • • $32.8 million capital expenditure over spend, of which $10.0 million is the unplanned acquisition of 69 Captain Springs Road, offset by; and
      • • $45.1 million year to date capital expenditure under spend;
    3. (iii) the impact of decisions made on 18 November 2008 relating to the draft 2009–2019 ten-year plan resulted in the reprioritisation of $53.7 million of the 2008/09 capital expenditure.

    CARRIED

  8. Top HOMELESS REPORT

    [Attachment 8A]

    The Chairperson moved:

    1. A. That the Finance and Strategy Committee notes the recommendations from the Community Services Committee's 3 December 2008 meeting.
    2. B. That the Finance and Strategy Committee notes that the objectives outlined in the Community Services Committee's recommendations may be achieved by amending the existing bylaw or by the development of a new bylaw, and request officers to report back to the Community Services Committee and the Finance and Strategy Committee with more detailed options and costs.

    Councillor Casey moved the following amendment by way of replacement:

    1. A. That Council approves unbudgeted expenditure of up to $50,000 for the development of a more involved contribution to other agencies' homeless work streams, to further implement the approximately twenty objectives in the Homeless Action Plan as contained in the report to the Community Services Committee on 3 December 2008, and that the funding for this expenditure be from the unidentified project budget established for the 2008/09 Annual Plan.

    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 Paul Goldsmith

    His Worship the Mayor, Deputy Mayor Hay, Councillor Donnelly and Councillor Lotu-Iiga were absent.

    The amendment was declared LOST by 3 votes to 2.

    Councillor Northey moved the following amendment by way of addition:

    C. That Council acknowledges that most of the issues that could be addressed by a bylaw to manage identified homeless and related issues are already adequately addressed by existing laws and the recently reviewed Public Spaces and other Council bylaws, and are better addressed by the constructive, caring, cooperative and comprehensive measures in the Homeless Action Plan and therefore the proposal to develop a bylaw on identified homeless and related issues not be proceeded with.

    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 Paul Goldsmith

    His Worship the Mayor, Deputy Mayor Hay, Councillor Donnelly and Councillor Lotu-Iiga were absent.

    The amendment was declared LOST by 3 votes to 2.

    The Chairperson put the substantive motion:

    1. A. That the Finance and Strategy Committee notes the recommendations from the Community Services Committee's 3 December 2008 meeting.
    2. B. That the Finance and Strategy Committee notes that the objectives outlined in the Community Services Committee's recommendations may be achieved by amending the existing bylaw or by the development of a new bylaw, and request officers to report back to the Community Services Committee and the Finance and Strategy Committee with more detailed options and costs.

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

    For the Motion: Against the Motion:
    Cr Douglas Armstrong

    Cr Aaron Bhatnagar

    Cr Paul Goldsmith

    		 Cr Dr Cathy Casey

    Cr Richard Northey

    His Worship the Mayor, Deputy Mayor Hay, Councillor Donnelly and Councillor Lotu-Iiga were absent.

    The motion was declared CARRIED by 3 votes to 2.

  9. Top AUCKLAND REGIONAL TRANSPORT NETWORK LIMITED ANNUAL REPORT AND ANNUAL MEETING

    That it be a recommendation to Council:

    1. A. That Auckland Regional Transport Network Limited's (ARTNL) annual report be received, noting that ARTNL made a net surplus after tax of $225,000.
    2. B. That Council recommends to Auckland Regional Transport Network Limited's (ARTNL) directors that the 2007/08 annual report be adopted.
    3. C. That Auckland City to vote in favour of the following resolutions for Auckland Regional Transport Network Limited's (ARTNL) 2008 annual meeting, to be held by way of written resolution in lieu of a physical meeting:
      1. (i) to receive, consider and adopt the financial statements and reports for the year ended 30 June 2008; and
      2. (ii) to re-appoint the Controller and Auditor-General as the auditor and authorise the directors to fix the auditors fees.
    4. D. That Councillor Armstrong, Chair of the Finance and Strategy Committee, be delegated to vote on behalf of Auckland City Council and sign documents required to give effect to the proposed resolutions of Auckland Regional Transport Network Limited's (ARTNL) annual meeting.
    5. E. That Council notes that the Auckland Regional Transport Network Limited (ARTNL) will continue to manage Britomart, under the Auckland City Council's ownership, until the findings of the Royal Commission provide a direction on transport governance in Auckland City.

    CARRIED

  10. Top PROPOSED RETAIL BOND ISSUE FOR MARCH 2009

    That it be a recommendation to Council:

    1. A. That Council should proceed with a retail bond issue, for an amount of up to $200 million plus oversubscriptions.
    2. B. That Council delegates authority to approve the final structure and terms of the retail bond issue to the General Manager Finance.
    3. C. That Council notes that other debt funding options may be used in conjunction with a retail bond issue, should they provide a cost-effective alternative.
    4. D. That Council appoints two of its members, plus a back-up, to sign the Certificate of Compliance that will accompany the Investment Statement, when the Investment Statement is ready to be released.
    5. E. That Council notes that officers will be continuously reviewing the efficacy of the use of a retail bond as a funding mechanism for council and will report back if any material events occur that might change officer's views.

    CARRIED

  11. Top DELEGATIONS REGISTER

    The Chairperson moved:

    That it be a recommendation to Council:

    1. That Council revokes all existing delegations (other than any that relate solely to a specific ongoing project).
    2. That the delegations register be amended to reflect the consolidation of the community board local and event funds into the community board discretionary fund. [pg 204, #499]
    3. That Council approves the Delegations Principles and Policies set out at Appendix 1, subject to the following amendment;
      CBD Projects CD19 Duty to have oversight of the CBD and waterfront policy direction and projects. City Development Committee
    4. That Council approves the Governance Register set out at Appendix 2, by delegating the identified powers, duties and functions to the entities and positions listed in the column headed "Delegate".
    5. That it be noted that the budgeted expenditure financial delegations contained in the Governance Register are as follows:
      Delegate Financial Delegation
      Chief Executive Up to $4m
      Committee Chair with the Chief Executive Up to $7.5m
      Committee Up to $10m
      Council $10m and over
    6. That it be noted that the financial delegations for writing off debts contained in the Governance Register are as follows:
      Delegate Financial Delegation
      Chief Executive Up to $80,000
      Committee Chair with the Chief Executive Up to $200,000
      Finance and Strategy Committee Up to $400,000
      Council $400,000 and over
    7. That it be noted that the Chief Executive will report to the Finance and Strategy Committee all transactions over $1 million. [pg 130, #31]

    Councillor Casey moved the following amendment by way of addition to B:

    1. That the delegations register be amended to reflect the consolidation of the community board local and event funds into the community board discretionary fund. [pg 204, #499] and the restoration of community board delegations removed by the 28 February 2008 Council meeting including those on signs, banners and billboards, trees, planning, urban design and liquor licensing.

      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 Paul Goldsmith

      Cr Peseta Sam Lotu-Iiga

      Deputy Mayor David Hay

      His Worship the Mayor and Councillor Donnelly were absent.

      The amendment was declared LOST by 5 votes to 2.

      Councillor Northey moved the following amendments:

    2. That Council approves the Delegations Principles and Policies set out at Appendix 1, subject to the following amendment;
      • That Principle 12 shall be deleted, that is, a Hearings Commissioner can exercise delegations on a matter in their own ward, provided there is no conflict of interest.

      Amendment C was put by show of hands and declared LOST by 5 votes to 2.

    3. That Council approves the Governance Register set out at Appendix 2, by delegating the identified powers, duties and functions to the entities and positions listed in the column headed "Delegate", with the following amendments:
      1. [page 126, number 17] – $7.5 million become $1.5 million;
      2. [page 130, number 31] – $4 million become $1 million;
      3. [page 135, number 54] – $10 million become $2 million;
      4. [page 146, number 133] – $10 million become $2 million;
      5. [page 153, number 180] – $10 million become $2 million;
      6. [page 159, number 216] – $400,000 become $250,000;
      7. [page 159, number 219] – $10 million become $2 million;
      8. [page 169, number 286] – $10 million become $2 million;
      9. That the Art Gallery Board and the Zoo Board be delegated the authority to spend $2 million as with the other committees.
        Amendment D (i) – (ix) was put by show of hands and declared LOST by 5 votes to 2.
      10. [page 127, number 19 & 21] – $150,000 become $100,000.
      11. [page 178, number 336, 337, 338] – – $150,000 become $100,000.

      A division was called for on amendment D (x) – (xi), 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 Paul Goldsmith

      Cr Peseta Sam Lotu-Iiga

      Deputy Mayor David Hay

      His Worship the Mayor and Councillor Donnelly were absent.

      The amendment D (x) – (xi) was declared LOST by 5 votes to 2.

    4. That it be noted that the budgeted expenditure financial delegations contained in the Governance Register are as follows:
      Delegate Financial Delegation
      Chief Executive Up to $1m
      Committee Chair with the Chief Executive Up to $1.5m
      Committee Up to $2m
      Council $2m and over

      LOST

    5. That it be noted that the financial delegations for writing off debts contained in the Governance Register are as follows:
      Delegate Financial Delegation
      Chief Executive Up to $80,000
      Committee Chair with the Chief Executive Up to $150,000
      Finance and Strategy Committee Up to $250,000
      Council $250,000 and over

      LOST

    The Chairperson put the substantive motion:

    That it be a recommendation to Council:

    1. That Council revokes all existing delegations (other than any that relate solely to a specific ongoing project).
    2. That the delegations register be amended to reflect the consolidation of the community board local and event funds into the community board discretionary fund. [pg 204, #499]
    3. That Council approves the Delegations Principles and Policies set out at Appendix 1, subject to the following amendment;
      CBD Projects CD19 Duty to have oversight of the CBD and waterfront policy direction and projects. City Development Committee
    4. That Council approves the Governance Register set out at Appendix 2, by delegating the identified powers, duties and functions to the entities and positions listed in the column headed "Delegate", subject to the following:
      1. That appropriate reference and delegations be provided for the Ngati Whatua o Orakei Reserves Board; and
      2. [page 163, number 248] – Add "This power shall only be exercised in meetings for which all councillors have been deemed to be members of Finance & Strategy Committee".
    5. That it be noted that the budgeted expenditure financial delegations contained in the Governance Register are as follows:
      Delegate Financial Delegation
      Chief Executive Up to $4m
      Committee Chair with the Chief Executive Up to $7.5m
      Committee Up to $10m
      Council $10m and over
    6. That it be noted that the financial delegations for writing off debts contained in the Governance Register are as follows:
      Delegate Financial Delegation
      Chief Executive Up to $80,000
      Committee Chair with the Chief Executive Up to $200,000
      Finance and Strategy Committee Up to $400,000
      Council $400,000 and over
    7. That it be noted that the Chief Executive will report to the Finance and Strategy Committee all transactions over $1 million. [pg 130, #31]

    CARRIED

  12. Top REVIEW OF METROWATER'S PERFORMANCE FOR THE FIRST QUARTER – 2008/09

    1. A. That the Finance and Strategy Committee thank the chair and chief executive of Metrowater for their attendance.
    2. B. That the Finance and Strategy Committee receives Metrowater's report for the first quarter of 2008/09, noting that:
      1. (i) net profit before tax for the quarter was $3.78 million, $504,000 unfavourable to budget;
      2. (ii) Metrowater has met its first quarter targets in relation to three out of four key performance indicators. Unaccounted for Water was slightly outside the first quarter target, primarily due to sales being lower than forecast;
      3. (iii) Metrowater has made satisfactory progress in relation to its three long-term measures of environmental, conservation and affordability; and
      4. (iv) all financial statements should be interpreted with caution as the accounts are unaudited and are based on assumptions that could change.

      Councillor Northey moved the following amendment by way of addition to B:

    3. B. That the Finance and Strategy Committee receives Metrowater's report for the first quarter of 2008/09, noting that:
      1. (v) Metrowater's first quarter report specifically acknowledges that "Metrowater is seeking to understand the risks climate change posed to the water and wastewater networks and business, and determine what mitigation may be required".

    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 Paul Goldsmith

    Cr Peseta Sam Lotu-Iiga

    Deputy Mayor David Hay

    His Worship the Mayor and Councillor Donnelly were absent.

    The amendment was declared LOST by 5 votes to 2.

    Councillor Casey moved the following amendment by way of addition to B:

    (vi) Metrowater's first quarter report specifically acknowledges, about 470 households had water and wastewater bills that were more than 5% of average household income, that is, higher than the World Health Organisation Standard, and therefore notes that "the company is investigating ways to develop a new measure of affordability for low income households as this is a requirement in the 2008/09 SOI".

    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 Paul Goldsmith

    Cr Peseta Sam Lotu-Iiga

    Deputy Mayor David Hay

    His Worship the Mayor and Councillor Donnelly were absent.

    The amendment was declared LOST by 5 votes to 2.

    The Chairperson put the substantive motion:

    1. That the Finance and Strategy Committee thanks Mr Ross Keenan, Chairman, and Mr Jim Bentley, Chief Executive, of Metrowater for their attendance.
    2. That the Finance and Strategy Committee receives Metrowater's report for the first quarter of 2008/09, noting that:
      1. net profit before tax for the quarter was $3.78 million, $504,000 unfavourable to budget;
      2. Metrowater has met its first quarter targets in relation to three out of four key performance indicators. Unaccounted for Water was slightly outside the first quarter target, primarily due to sales being lower than forecast;
      3. Metrowater has made satisfactory progress in relation to its three long-term measures of environmental, conservation and affordability; and
      4. all financial statements should be interpreted with caution as the accounts are unaudited and are based on assumptions that could change.

    CARRIED

  13. Top REVIEW OF THE EDGE®'S PERFORMANCE FOR THE QUARTER ENDING 30 SEPTEMBER 2008

    1. That the Finance and Strategy Committee thanks Mr Tony Larsen, Chief Financial Officer, and Ms Victoria Carter, Director, of THE EDGE® for their attendance.
    2. That the Finance and Strategy Committee notes that THE EDGE® reported a net operating deficit of $54,239 for the quarter ending 30 September 2008, after taking into account arts agenda grant income and reserve fund transfers.
    3. That the Finance and Strategy Committee notes that THE EDGE® is on track to meet all its performance targets set out in the 2008/2009 Statement of Intent (SOI).

    CARRIED

  14. 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. REVIEW OF THE EDGE®'S PERFORMANCE FOR THE QUARTER ENDING 30 SEPTEMBER 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 report contains commercially sensitive information relating to THE EDGE® such as the financial outcomes of individual events and/or contribution margins, which if release to the public, would disadvantage THE EDGE® 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. REVIEW OF WATERCARE'S PERFORMANCE FOR THE QUARTER ENDING 30 SEPTEMBER 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 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.

    C3. REVIEW OF THE PARKING ADVISORY BOARD'S PERFORMANCE FOR THE FIRST QUATER 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 material that in a competitive environment, competing with privately owned car parks, 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. DELEGATED DECISIONS OF THE GROUP MANAGER PROPERTY 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.

    1. That Mr Tony Larsen and Ms Victoria Carter, of THE EDGE® be permitted to remain at this meeting after the public has been excluded for confidential item C1 because of his knowledge of the THE EDGE®'S performance.
    2. That Mr Warren Gibb, Chair of the Parking Advisory Board be permitted to remain at this meeting after the public has been excluded for confidential item C3 because of his knowledge of the Parking Advisory Board.

    There being no further business the Chairperson declared the meeting closed at 12:50 pm.