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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, 18 MARCH 2009 AT 9.30AM
IN THE COMMITTEE ROOM, LEVEL 15
CIVIC ADMINISTRATION BUILDING
1 GREYS AVENUE
AUCKLAND

PRESENT: Councillors: Douglas Armstrong, QSO [Chairperson]
    Paul Goldsmith [Deputy Chairperson]
[from 9:31am, item 2]
    Aaron Bhatnagar [until 10:17am, item 9; from 10:21am, item 9]
    Dr Cathy Casey  
    Mark Donnelly  
  Deputy Mayor David Hay, JP [from 9:45am, item 7; until 10:15am, item 9; from 10:19am, item 9]
    Peseta Sam Lotu-Iiga  
    Richard Northey, ONZM [until 10:23am, item 9; from 10:25am, item 9]
ALSO PRESENT:   Leila Boyle  
    Bill Christian, JP  
    Glenda Fryer [until 11:03am, item 10; from 11:11am, item 12]
    Toni Millar, JP [from 11:04am, item11]
    Denise Roche [from 10:17am, item 9]

  1. Top APOLOGIES

    That the apology from Councillor Goldsmith for lateness be accepted.

    CARRIED

  2. Top CONFIRMATION OF MINUTES

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

    CARRIED

  3. Top EXTRAORDINARY BUSINESS

    There was no extraordinary business.

  4. Top PUBLIC FORUM

    There were no requests to speak in public forum.

  5. Top REPORTS REQUESTED PENDING

    That the reports requested pending of the Democracy Advisor, dated 6 March 2009, be received, subject to the following change:

    • Change Row 2 Target Date from March 2009 to April 2009.

    CARRIED

  6. Top DELEGATED DECISIONS OF THE GROUP MANAGER PROPERTY AND PROPERTY MANAGEMENT MANAGER

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

    CARRIED

  7. Top WEATHERTIGHT UPDATE

    1. That the Finance and Strategy Committee notes the on-going significance of the weathertight problem both in terms of cost locally and nationally and for the people involved.
    2. That the Finance and Strategy Committee notes the important milestones being achieved by the test cases being run in the High Court and the appeals to the Court of Appeal.
    3. That the Finance and Strategy Committee notes that both council and Local Government New Zealand believe a different approach is required that allows funds to be put into the repair of homes not the legal process, such as the no fault proposal developed by Local Government New Zealand and will continue to advocate for such a fair and cost effective solution.
    4. That the Finance and Strategy Committee notes that officers are confident that appropriate provision has been made in the Ten-year Plan for council's leaky homes liability.
    5. That the Finance and Strategy Committee notes that council policy is to continue to pursue, using all avenues available, all liable parties for leaky buildings to offset council's liability.

    CARRIED

  8. Top TRUSTS AND RESERVES

    1. That the Finance and Strategy Committee notes the report showing net income earned by the trusts of $4.4 million.
    2. That the Finance and Strategy Committee approves distributions of $1.4 million for the six months ended 31 December 2008 in accordance with the terms of the respective trusts.
    3. That the Finance and Strategy Committee requests a more detailed report on council's trusts and reserves to the Committee's April 2009 meeting.

    CARRIED

  9. Top FINANCIAL REPORT FOR THE SEVEN MONTHS ENDED 31 JANUARY 2009

    The Chairperson moved:

    1. That the Finance and Strategy Committee notes that the financial report for the seven months ended 31 January 2009 highlighting:
      1. Council's performance in keeping its year to date operating expenditure of $11.2 million favourable to budget; and
      2. A year to date capital expenditure under spend of $16.9 million against budget, comprising:
        • $46.1 million capital expenditure over spend, of which $10.0 million is the earlier than planned acquisition of 69 Captain Springs Road, offset by; and
        • $63.0 million year to date capital expenditure under spend.
    2. That the Finance and Strategy Committee requests the Chief Executive to use his best endeavours to continue to deliver an operating surplus well in excess of budget through to the end of the year.

    Councillor Northey moved the following amendment to A (ii):

    1. A year to date capital expenditure under spend of $16.9 million against budget, comprising:
      • $46.1 million capital expenditure over spend, of which $10.0 million is the unplanned acquisition of 69 Captain Springs Road, offset by; and
      • $63.0 million year to date capital expenditure under spend. of which the largest components are:
        1. Art Gallery development - $9.2 million;
        2. Road based renewal - $8.5 million; and
        3. (c) Organisational development portfolio - $5.4 million.

    The amendment A (ii) was put by a show of hands and declared LOST by 6 votes to 2.

    The Chairperson put the substantive motion:

    1. That the Finance and Strategy Committee notes that the financial report for the seven months ended 31 January 2009 highlighting:
      1. Council's performance in keeping its year to date operating expenditure of $11.2 million favourable to budget; and
      2. A year to date capital expenditure under spend of $16.9 million against budget, comprising:
        • $46.1 million capital expenditure over spend, of which $10.0 million is the earlier than planned acquisition of 69 Captain Springs Road, offset by; and
        • $63.0 million year to date capital expenditure under spend.
    2. That the Finance and Strategy Committee requests the Chief Executive to use his best endeavours to continue to deliver an operating surplus well in excess of budget through to the end of the year.

    CARRIED

  10. Top NZ POST PAYMENT OPTION

    [ATTACHMENT 10A]

    The Chairperson moved:

    1. That the Finance and Strategy Committee notes that Westpac provides a satisfactory service to meet the "over the counter "payment needs of Council's customers, given the relatively small percentage of Council's total payment transactions they form, and the already costly nature of this payment channel.
    2. That the Finance and Strategy Committee notes that the "over the counter" payment option is available at 23 locations within Auckland City and 44 locations throughout the Auckland region at Auckland City Council service centres and Westpac branches.
    3. That the Finance and Strategy Committee notes that officers do not intend to move to NZ Post given the increased costs that would be imposed on all ratepayers.

    Councillor Casey moved the following amendment by way of replacement to C and by adding new resolution D:

    1. That the Finance and Strategy Committee notes that officers do not recommend to move to add NZ Post as an "over the counter" payment option.
    2. That council pursue obtaining agreements for the acceptance of "over the counter" payments at both Westpac and NZ Post locations.

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

    For the Amendment:

    Against the Amendment:
    Cr Dr Cathy Casey

    Cr Mark Donnelly

    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 was absent.

    The amendment was declared LOST by 5 votes to 3.

    [Secretarial note: Councillor Fryer declared conflict of interest and did not speak to this amendment.]

    Councillor Northey moved the following amendment by way of addition:

    1. That Council expedite moves to ensure that dog registration and dog infringement fines can be paid at appropriate "over the counter" locations within Auckland City as well as via telephone banking, telephone, and internet banking.

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

    The Chairperson put the substantive motion:

    1. That the Finance and Strategy Committee notes that Westpac provides a satisfactory service to meet the "over the counter "payment needs of Council's customers, given the relatively small percentage of Council's total payment transactions they form, and the already costly nature of this payment channel.
    2. That the Finance and Strategy Committee notes that the "over the counter" payment option is available at 23 locations within Auckland City and 44 locations throughout the Auckland region at Auckland City Council service centres and Westpac branches.
    3. That the Finance and Strategy Committee notes that officers do not intend to move to NZ Post given the increased costs that would be imposed on all ratepayers.

    CARRIED

    [Secretarial note: Councillors Northey and Casey requested their vote against the motion be recorded.]

  11. Top LOCAL GOVERNMENT NEW ZEALAND ANNUAL CONFERENCE 2009 - COUNCIL DELEGATES

    That the Finance and Strategy Committee agrees that Mayor and Deputy Mayor be delegated authority to appoint members, including the principal (voting) delegate, to represent the Auckland City Council at the Local Government New Zealand Conference 2009 from those Councillors indicating the wish to attend.

    CARRIED

  12. Top AUCKLAND ART GALLERY DEVELOPMENT PROJECT

    1. That the Finance and Strategy Committee notes the Art Gallery development project update, which provides information on an estimated $2.0 to $2.5 million additional unbudgeted cost arising from the project's on-going engagement in an Environment Court process since March 2008.
    2. That the Finance and Strategy Committee notes that the Art Gallery development project team is currently undertaking a value management review of all costs in order to identify potential savings that can assist with keeping the project within its existing council approved budget.
    3. That the Finance and Strategy Committee notes that any proposed adjustment to the budget of the Art Gallery development project will be reported to the June Combined Committees meeting, subject to the Environment Court handing down of a full and final resource consent decision.

    CARRIED

  13. 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.

    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. DELEGATED DECISION 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.

    CARRIED

    There being no further business the Chairperson declared the meeting closed at 11:27 am.