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Performance Monitoring Committee
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MINUTES OF A MEETING OF THE
PERFORMANCE MONITORING COMMITTEE
HELD ON THURSDAY, 17 SEPTEMBER 2009 AT 11:00 AM
IN THE EXECUTIVE BOARDROOM, LEVEL 13
CIVIC ADMINISTRATION BUILDING
1 GREYS AVENUE, AUCKLAND

PRESENT: Deputy Mayor David Hay, JP Chairman
  Councillors Douglas Armstrong, QSO  
    Ken Baguley  
    Richard Northey, ONZM [from 11:07am item 5]
ALSO PRESENT: Councillor Glenda Fryer  

  1. Top APOLOGIES

    That the apology from Councillor Northey for lateness be accepted.

    CARRIED

  2. Top CONFIRMATION OF MINUTES

    That the minutes of the Performance Monitoring Committee meeting held on Tuesday, 19 May 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 for public forum.

  5. Top BUSINESS CASE FOR PLANNING AND BUDGETING PROJECT UNDER FINANCE ROADMAP PROGRAMME

    The Chairman moved:

    1. That the Performance Monitoring Committee notes:
      1. that planning and budgeting has been identified as a critical function requiring transformational change to address system, process and capability gaps and meet political, organisational and legislative demands
      2. the establishment of a foundation for regional planning and budgeting will be a critical challenge for the Auckland Transition Agency that must commence urgently if the Auckland Council is to deliver on legislative planning and reporting requirements and meet political, organisational and community expectations.
    2. That the Performance Monitoring Committee approves the business case for the planning and budgeting project to deliver improved systems, process and capability for Auckland City Council, which requires expenditure of up to $4.46 million (including 10% contingency) for 2009/2010 from the Organisation Development portfolio budget, subject to Auckland Transition Agency confirmation.
    3. That the Performance Monitoring Committee notes that the proposed planning and budgeting project:
      1. will result in consequential operating expenditure of approximately $851,000 per annum from 2010/2011
      2. is projected to deliver efficiency gains of approximately $3 million over five years
      3. will need to be confirmed by the Auckland Transition Agency (ATA)
      4. could be extended to provide a regional planning and budgeting solution for the new Auckland Council.
    4. That officers write to the Auckland Transition Agency seeking an assurance that their confirmation is on the basis that they have considered the needs of the region and consider this system meets requirements of the new Auckland Council and that this work will not be duplicated.

    Councillor Northey moved the following amendment by way of addition:

    1. That council contact the Auckland Transition Agency (ATA) and the other councils in the region recommending this project to improve planning and budgeting intended to be applied across the region and for them to give the project priority consideration as Auckland City will not carry out this project without the agreement of the ATA and the bulk of the councils across the region.

    LOST

    The Chairman put the substantive motion:

    1. That the Performance Monitoring Committee notes:
      1. that planning and budgeting has been identified as a critical function requiring transformational change to address system, process and capability gaps and meet political, organisational and legislative demands
      2. the establishment of a foundation for regional planning and budgeting will be a critical challenge for the Auckland Transition Agency that must commence urgently if the Auckland Council is to deliver on legislative planning and reporting requirements and meet political, organisational and community expectations.
    2. That the Performance Monitoring Committee approves the business case for the planning and budgeting project to deliver improved systems, process and capability for Auckland City Council, which requires expenditure of up to $4.46 million (including 10% contingency) for 2009/2010 from the Organisation Development portfolio budget, subject to Auckland Transition Agency confirmation.
    3. That the Performance Monitoring Committee notes that the proposed planning and budgeting project:
      1. will result in consequential operating expenditure of approximately $851,000 per annum from 2010/2011
      2. is projected to deliver efficiency gains of approximately $3 million over five years
      3. will need to be confirmed by the Auckland Transition Agency (ATA)
      4. could be extended to provide a regional planning and budgeting solution for the new Auckland Council.
    4. That officers write to the Auckland Transition Agency seeking an assurance that their confirmation is on the basis that they have considered the needs of the region and consider this system meets requirements of the new Auckland Council and that this work will not be duplicated.

    CARRIED

    Councillor Northey requested that his vote be recorded against the motion.

  6. Top BUSINESS CASE FOR PROCUREMENT SYSTEM AND PROCESS REDESIGN

    The Chairman moved:

    1. That the Performance Monitoring Committee notes:
      1. that the Procurement process and systems project will require $5.0 million of capital expenditure and $564,000 of operational expenditure over the 2009/2010 and 2010/2011 financial years, but that the benefits of this project in terms of cost savings are expected to outweigh the costs
      2. that this project is expected to provide a positive net present value return of $5.78 million over the next six years.
    2. That the Performance Monitoring Committee approves the business case for the procurement process and systems project and the use of the Organisational Development portfolio budget for this project, noting that this decision will require confirmation from the Auckland Transition Agency.
    3. That officers write to the Auckland Transition Agency seeking an assurance that their confirmation is on the basis that they have considered the needs of the region and consider this system meets requirements of the new Auckland Council and that this work will not be duplicated.

    Councillor Northey moved the following amendment by way of addition:

    1. That council contact the Auckland Transition Agency (ATA) and the other councils in the region to improve procurement processes and systems intended to be applied across the region and for them to give this project priority consideration for support and for some contribution towards its costs, as Auckland City will not carry out this project without the agreement of the ATA and of the bulk of the councils across the region.

    LOST

    The Chairman put the substantive motion:

    1. That the Performance Monitoring Committee notes:
      1. that the Procurement process and systems project will require $5.0 million of capital expenditure and $564,000 of operational expenditure over the 2009/2010 and 2010/2011 financial years, but that the benefits of this project in terms of cost savings are expected to outweigh the costs
      2. that this project is expected to provide a positive net present value return of $5.78 million over the next six years.
    2. That the Performance Monitoring Committee approves the business case for the procurement process and systems project and the use of the Organisational Development portfolio budget for this project, noting that this decision will require confirmation from the Auckland Transition Agency.
    3. That officers write to the Auckland Transition Agency seeking an assurance that their confirmation is on the basis that they have considered the needs of the region and consider this system meets requirements of the new Auckland Council and that this work will not be duplicated.

    CARRIED

    Councillor Northey requested that his vote be recorded against the motion.

    There being no further business the Chairman declared the meeting closed at 12:00 noon.