MINUTES OF A MEETING OF THE *COMBINED COMMITTEES HELD ON THURSDAY, 21 JUNE 2007 AT 9.34 AM

Secretarial Note:

The Chairman opened the meeting at 9.34am and adjourned the meeting at 9.34am. The meeting reconvened at 10.20am following the conclusion of the extraordinary Finance and Corporate Business Committee meeting.

1. APOLOGIES

   That the apologies from Councillor Simpson for non-attendance and Councillor Leighton for non-attendance (due to illness) be accepted.

   CARRIED

2. CONFIRMATION OF MINUTES

   That the minutes of the *Combined Committees meeting held on Wednesday, 7 March 2007 be confirmed as a true and correct record.

   CARRIED

3. EXTRAORDINARY BUSINESS

   There was no extraordinary business.

4. OVERVIEW OF THE 2007/2008 ANNUAL PLAN

   The General Manager Finance gave an overview for the issues of the 2007/2008 Annual Plan.

   [ATTACHMENT 4]

   That the information be received.

   CARRIED

5. UPDATE ON BUDGETS FOR 2007/2008

   Secretarial Note:

   The Chairman moved item 5 to enable discussion and questions, then 'parked' the item pending the outcome of other items on the agenda.

   That items 6, 7, 8 and 9 be considered at this point.

   CARRIED

   Secretarial Note:

   The Chairman put the following substantive motion in parts.  A to C and E to I were taken together by voices.

   That it be a recommendation to Council:

   1. That the revenue changes as detailed in appendix A of the report entitled "Update on Budgets for 2007/2008" by the Corporate Planning Manager and Asset Planning Manager dated 12 June 2007, be approved as follows:

      Revenue Changes
      Row	Revenue	Nature of revenue	Change to budget	Impact on general rates
      1.	Commercial properties	Net revenue for purchase of Trans Tasman/Southern Spas property.	-1,070,134	-1,070,134
      2.	Commercial properties	Net revenues from Auckland Manukau Eastern Transport Initiative (AMETI) related acquisitions	-623,700	-623,700
      3.	Parking	Increased revenue from ticketing ($1,300,000) offset by the cost of five parking officers and six infringement review advisors delivering and supporting the increased ticketing ($700,000)	-600,000	-600,000
      4.	Parking	Increased pay and display revenue ($1,300,000) offset by lost pay and display spaces through the central connector project ($700,000)	-600,000	-600,000
      5.	Parking	Other revenue increases in relation to internal carpark usage ($100,000); Matiatia casual parking ($100,000) and downtown carpark tenancy $200,000.	-400,000	-400,000
      6.	Auckland Zoo	Additional revenue from expected increase in zoo visitors	-326,094	-326,094
      7.	Land Transport New Zealand (LTNZ) subsidy	Additional annual revenue to be received from LTNZ in relation to the declared 10 year bus shelter maintenance programme	-268,000	-268,000
      8.	Commercial properties	Additional revenue from berth acquisitions at Orakei marina	-120,000	-120,000
      9.	Commercial properties	Additional Vodafone revenue	-50,000	-50,000
      10.	Sale recovery	ARC database sale recovery	-50,000	-50,000
      		Sub-total	-4,107,928	-4,107,928

   2. That the savings detailed in appendix B of the report entitled "Update on Budgets for 2007/2008" by the Corporate Planning Manager and Asset Planning Manager, dated 12 June 2007, be approved as follows:

      Savings
      Row	Saving	Nature of saving and explanation	Change to budget	Impact on general rates
      1.	Auckland Museum and MOTAT grants	Confirmed 2007/2008 grants for Auckland Museum ($647,000 saving) and MOTAT ($97 expense)	-550,000	-550,000
      2.	Capitalisation of operating expenditure	Capitalisation of staff working on Transport Infrastructure Development projects	-400,000	-400,000
      3.	Capitalisation of operating expenditure	Reclassification of thermo-plastic road markings from opex to capex.	-300,000	-300,000
      4.	Capitalisation of operating expenditure	Capitalisation of staff working on Transport Strategy projects	-300,000	-300,000
      5.	Auckland Festival Trust	Advance of 2007/2008 Auckland Festival Trust grant into 2006/2007.	-200,000	-200,000
      6.	Support costs	Reduction in the requests for information, support/advice has led to a saving within the Transport division	-200,000	-200,000
      7.	Delayed projects	Savings from projects on hold - ferry design work, rail precincts design work and only one project from funding strategy	-200,000	-200,000
      8.	Westhaven Marina maintenance	Cost savings from unscheduled and unplanned contractor costs to mitigate increased costs in Westhaven Marina maintenance	-90,000	-90,000
      9.	Auckland City events	Overall saving following establishment of Auckland City Events manager and reprioritisation of budgets.	-23,000	-23,000
      		Sub-total	-2,263,000	-2,263,000

   3. That the expenditure changes denoted as unavoidable in appendix C of the report entitled "Update on Budgets for 2007/2008" by the Corporate Planning Manager and Asset Planning Manager, dated 12 June 2007, be approved as follows:

      Unavoidable expenditure
      Row	Expenditure	Nature of saving and explanation	Change to budget	Impact on general rates
      1.	Regulatory Review	Delay in the commencement of the review now means that planned 2006/2007 activities will take place in 2007/2008. There is no increase in overall costs over the two years.	597,539	597,539
      2.	SAP licencing costs	Additional SAP licensing requirements for the Regulatory Review and OSCAR projects	306,000	306,000
      3.	Electricity charges	Higher electricitiy expenses following review of property management costs. Auckland City Council is now in a seven-year contract with Vector	290,325	290,325
      4.	FileNet licencing costs	Additional FileNet licensing requirements for the Regulatory review	150,000	150,000
      5.	Continuation of opening of Art Gallery main gallery building	With a delay in the Art Gallery renovations, the Main Gallery building is to be open for three more months. This requires additional budget to fund salaries and wages for Gallery Guides and Security staff.	147,267	147,267
      6.	Hearings Team	To fund increased activity within Hearings, including review of Hauraki Gulf Islands & Isthmus District Plan. Several costs are unrecoverable as Auckland City Council is the applicant	145,000	145,000
      7.	Abandoned vehicle contract	Revision of rates relating to contract	100,000	100,000
      8.	Holidays Act requirements	Increase in minimum annual leave to four weeks requires the libraries and Art Gallery to increase temporary staff budgets as positions must be back filled when permanent staff on extra week's leave.	85,216	85,216
      9.	Councillors salaries	The Remuneration Authority has set the remuneration increase for 2008	83,651	83,651
      10.	Bank transaction charges	There are projected increases in bank transaction charges based on higher volumes.	50,000	50,000
      11.	Hearings Team	To fund an additional resource within Hearings Team based on higher number of hearings.	45,000	45,000
      12.	New post codes requirements by NZ post	An additional resource is required to update postcodes in Auckland City's name and address database as required by NZ post. Implementation will avoid mail delays.	36,000	36,000
      13.	Increased audit fees	Additional amount based on quote from Audit NZ for interim audits, auditing annual reports and long-term plans	15,000	15,000
      14.	Local Government New Zealand (LGNZ) annual subscription	The LGNZ annual subscription has increased from $83,000 to $98,000	15,000	15,000
      15.	Increased consent volumes	Project increase in consent and licensing revenues based on 2006/2007 volumes. However, this has been offset by the need to appoint four additional staff and building accreditation training budget.	0	0
      16.	Net interest adjustment	Increase in interest expense/reduction in interest income as a result of additional and timing of capital expenditure	1,927,000	1,927,000
      		Sub-total	3,992,998	3,992,998

      CARRIED

      Secretarial Note:

      The Chairman put the following resolution separately:

   4. That the new requests for expenditure as detailed in appendix D of the report entitled "Update on Budgets for 2007/2008" by the Corporate Planning Manager and Asset Planning Manager, dated 12 June 2007, be approved as follows:

      New requests for expenditure
      Row	Expenditure	Nature of saving and explanation	Change to budget	Impact on general rates
      1.	Auckland City Council's remuneration policy	Additional funding is required to increase staff that are being paid well below the median income for their industry.	400,000	400,000
      2.	Total of confidential items	Refer to confidential agenda	236,000	236,000
      3.	Transport strategy initiatives	Three studies in relation to neighbourhood access initiatives ($300,000) proposed by LTNZ, business travel plans proposed by ARTA ($300,000). These costs will be partly offset by expected subsidies ($450,000)	150,000	150,000
      4.	The EdgeŽ - Facilities Management System project	Additional staff and other expenses are required to implement the Facilities Management System project - see Appendix G	118,000	118,000
      5.	To manage the red light camera project	Management of the red light camera project is to be handed back from ARTA to Auckland City Council. This resource will be part funded by LTNZ through subsidy, with the net cost to Auckland City Council.	64,000	64,000
      6.	Vector Arena	To increase the amount for management and monitoring for the Arena	60,000	60,000
      7.	Matiatia terminal doors	Budgeted cost of $100,000 to be fully funded from expected increase in revenue from Wharves fees.	0	0
      		Sub-total	1,028,000	1,028,000

      CARRIED

   5. That the expenditure requests that will result in future efficiency gains as detailed in appendix E of the report entitled "Update on Budgets for 2007/2008" by the Corporate Planning Manager and Asset Planning Manager, dated 12 June 2007, be approved as follows:

      Expenditure requests that will result in future efficiency gains
      Row	Expenditure	Nature of saving and explanation	Change to budget	Impact on general rates
      1.	To fund temporary staffing through transition	Transition cost (2007/2008 impact only) to enable project manager and contract manager roles to migrate from consultants to in-house staff without affecting service delivery. Expected annual saving (-$800,000) requested to be used to fund the next item	300,000	300,000
      2.	Asset management plans - condition surveys	Additional funding is required to complete condition surveys for all Auckland City Council's major buildings by December 2007. Measure and value condition surveys are a core requirement to achieving meaningful asset management plans.	212,000	212,000
      3.	Annual property inspections	Inspection every residential property at least once every six years will increase data accuracy reducing the number of valuation objections and therefore the cost of processing those objections ($250,000 ongoing saving from 2008/2009)	189,000	189,000
      4.	Asset management	The role of Asset Analyst will undertake asset deterioration modelling to ensure the updated asset management plan considers the best approach to maintaining and renewing assets going forward	100,000	100,000
      		Sub-total	801,000	801,000

   6. That the targeted rate expenditure changes as detailed in appendix F of the report entitled "Update on Budgets for 2007/2008" by the Corporate Planning Manager and Asset Planning Manager, dated 12 June 2007, be approved as follows:

      Targeted rate expenditure changes
      Row	Expenditure	Nature of saving and explanation	Change to budget	Impact on general rates
      1.	Making communities more relevant - transfer of expenditure from capital to operating	Projects approved by the Community Development and Equity Committee in November 2006.	849,000	0
      2.	CBD branding initiative	To progress branding initiative in CBD as a partnership with Heart of the City (HOTC) and Tourism Auckland - destination marketing	400,000	0
      3.	Beach Road and Arena connections - transfer of expenditure from capital to operating	Funds concept and design work	160,000	0
      4.	Stage 4 of Lorne St upgrade (area in front of library)	To undertake concept and design work for project - capital works cannot proceed until design work completed	100,000	0
      5.	Transport designated fund	Deferral for AMETI related costs from the designated fund	100,000	0
      6.	St Patrick's square upgrade - transfer of expenditure from capital to operating	Funds concept and design work.	80,000	0
      7.	CBD Board initiative	To research and gain an understanding of what actions are required to consolidate and reinforce a core commercial area within the CBD.	50,000	0
      8.	Refuse collection - higher growth	Higher growth in the number of services increases collection and disposal expenses related to numbers of bins, inflation and tonnage ($731,000) but is fully offset from higher targeted rate revenue and has no impact on the $199 proposed charge.	0	0
      9.	Implementation of quarter plans (Aotea, Victoria, Learning) and development of additional quarter plan in 2009	Saving - focusing in 2007/2008 on branding for Aotea quarter to support and align with CBD branding initiative.	-50,000
      10.	Deferral of projects into 2008/2009 relating to: - Vibrant local centre; - making community facilities more relevant; and - New centre and library for Otahuhu initiatives	Consequential operating expenses are also deferred into 2008/2009.	-935,000	0
      11.	Net interest adjustment	Increase in interest expense/reduction in interest income as a result of changes in the timing of the expenditure and due to additional expenditure. For example, the likely purchase of land around Wynyard Point was originally planned to take place in 2014. The bringing forward of this expenditure into 2008 requires the organisation to borrow more than what was reported in the draft annual plan. The reason this has no effect on the targeted rate revenue is that the revenue is set to fully fund all expenditure by 2036.	14,132,766	0
      	Total opex change	Sub-total	14,886,766	0

   7. That it be noted that approval of all changes in resolutions A to F and other expenditure changes of $285,000 reduces the general rate revenue by $263,000 and maintains an overall rate increase of 3.6%.
   8. That a capital expenditure programme of $594 million for 2007/2008, an increase of $58 million over the amount reported in the draft 2007/2008 Annual Plan (with major changes detailed in appendix G of the report entitled "Update on Budgets for 2007/2008" by the Corporate Planning Manager and Asset Planning Manager dated 12 June 2007), be approved.
   9. That it be noted that an additional $263,000 of operational expenditure can be supported while maintaining an overall rate increase of 3.6%.

      CARRIED

      Secretarial Note:

      The Chairman put the following resolution separately:

   10. That the following additional expenditure be provided for utilising the $263,000 available while maintaining the overall rate increase of 3.6%:

       New requests for expenditure
       Row	Expenditure	Change to budget	Impact on general rates
       1.	Events/sponsorship budget	20,000	20,000
       2.	Project K start up	80,000	80,000
       3.	HIPPY programme	50,000	50,000
       4.	Community Group Assistance Fund	75,000	75,000
       5.	Encroachment Officer	38,000	38,000
       	Total additional expenditure	263,000	263,000

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

       For the Motion:	Against the Motion:
       Cr Neil Abel Cr Leila Boyle Cr Dr Cathy Casey Cr Christine Caughey Cr Glenda Fryer Cr Dr John Hinchcliff Deputy Mayor, Cr Dr Bruce Hucker Cr Richard Northey Cr Penny Sefuiva Cr Faye Storer His Worship the Mayor, Dick Hubbard Cr Vern Walsh	Cr Doug Armstrong Cr Bill Christian Cr Toni Millar Cr Scott Milne Cr Graeme Mulholland Cr Noelene Raffills

   Cr Linda Leighton and Cr Richard Simpson were absent.

   The motion was declared CARRIED by 12 votes to 6.

   SPECIAL CONSULTATIVE PROCEDURES

6. 2007 DEVELOPMENT CONTRIBUTIONS POLICY: SUBMISSIONS AND POLICY FOR ADOPTION

   That it be a recommendation to Council:

   1. That it be noted that the judgement in the Neil decision reinforced the requirement that the cost allocation for each development contribution activity should be considered separately in light of several factors specified in the Local Government Act 2002.

      Transport

   2. That the council's intention, after consideration of section 101(3) of the Local Government Act 2002 (LGA), to ensure that the costs of growth for the transport activity are recovered primarily from the growth community be approved.
   3. That it be noted that calculation of the transport cost of growth excludes costs that are wholly concerned with service level increases and the provision of benefits to the existing community; and evenly splits remaining costs between the growth community and other users to take into account operational benefits arising from the provision of capacity for growth.
   4. That the allocation of $205 million in growth costs to the growth community to be recovered through development contributions be approved, noting this represents 11.9 per cent of the gross capital spend on the transport activity over the next ten years (the rest of the funding coming from rates, subsidies and borrowing) which is appropriate after consideration of the factors in section 101(3)(a) of the Local Government Act 2002 (LGA) and the overall impact on community wellbeing under section 101(3)(b).

      Public Space

   5. That it be noted that the Council's intention, after consideration of section 101(3) of the Local Government Act 2002 (LGA), is to ensure that the costs of growth for public space land acquisition and public space infrastructure are recovered from the growth community.
   6. That it be noted that the calculation of public space cost of growth eliminates any costs that are wholly concerned with the provision of benefits for the existing community. The remaining costs are for the provision of new public space capacity and, although existing residents will receive some benefit from being able to access new public spaces (including Wynyard Point), none of these capacity costs have been allocated to existing residents because they will, as a result of growth, actually receive a diminished provision of public space in relation to Council's target level of provision.
   7. That the allocation of $208.3 million for public space infrastructure and $191 million for public space land acquisition be approved, noting that it constitutes 78 per cent of the ten-year capital costs for this activity (the rest of the money coming from rates) which is appropriate after consideration of the factors in section 101(3)(a) of the Local Government Act 2002 (LGA) and the overall impact on community wellbeing under section 101(3)(b).

      Stormwater

   8. That the Council's intention, after consideration of section 101(3) of the Local Government Act 2002, to ensure that the costs of growth for the stormwater activity are recovered primarily from the growth community be approved.
   9. That it be noted that the stormwater methodology allocates the cost of providing new stormwater capacity that benefits new and existing users by employing a "shared savings" approach and all costs which are not capacity related, such as renewals and capital works to improve stormwater quality (service level improvements) are excluded from the analysis and allocated to existing users.
   10. That the allocation of $86 million to the growth community for recovery through development contributions be approved, noting this represents around 21.8 per cent of the council's $395 million capital spend on the stormwater activity over the next ten years (the rest of it coming from rates and charitable receipts), which is appropriate after consideration of the factors in section 101(3)(a) of the Local Government Act 2002 (LGA) and the overall impact on community wellbeing under section 101(3)(b).

       Community amenities

   11. That the Council's intention, after consideration of section 101(3) of the Local Government Act 2002 (LGA), to ensure that the costs of growth for the community amenities activity are recovered primarily from the growth community be approved.
   12. That it be noted that the calculation of the cost of growth for the community amenities activity is carried out on a project by project basis, and for each project costs related to service level improvements and shortfall (both of which mainly provide benefits for existing users) are excluded.
   13. That the allocation of $26.7 million for community amenities be approved, noting this constitutes around 10 per cent of the ten-year capital costs for this activity (the rest of the money coming largely from rates), which is appropriate after consideration of the factors in section 101(3)(a) of the Local Government Act 2002 (LGA) and the overall impact on community wellbeing under section 101(3)(b).

       Changes to the policy

   14. That it be noted that the final 2007 Development Contribution Policy has had the following significant updates since being presented to the 7 March 2007 Combined Committees meeting:
       1. Changes to ensure compliance with the Local Government Act 2002 (LGA) by explicitly noting that only consents that meet the thresholds in section 197 to 199 of the LGA, as identified in the Neil decision, are charged development contributions.
       2. Changes to ensure that the policy more explicitly provides a comprehensive assessment of section 101(3) factors.
       3. An extension of the transition period for the introduction of the increased charges under the 2007 policy from six months to 12 months, in the central area only, which will lead to a further under recovery of public space charges of around $4.7 million.
       4. Various minor changes to clarify issues raised by submitters and in further legal advice.
   15. That the 2007 Development Contributions Policy as attached to the report entitled "2007 development contributions policy: submissions and policy for adoption" by H Bunn, Consultant, dated 12 June 2007, be adopted by Council to be effective from 1 July 2007 (subject to any amendments from the 21 June Combined Committees meeting).

       Other issues

   16. That it be noted that officers will continue to investigate and monitor the possible effects of development contributions on development and will report to council as appropriate.
   17. That it be noted that officers will work with interested submitters to consider the household unit calculation factors applied to the transport activity but any change will not occur until the 2008 policy.

   CARRIED

7. INTERGENERATIONAL EQUITY AND THE SUSTAINABLE DEBT POLICY

   That it be a recommendation to Council:

   1. That it be noted:
      1. That the majority of submissions received on the proposed change to the debt policy via the Annual Plan process were supportive of the principle of spreading costs more fairly between generations. This support was often conditional upon borrowing being used in a prudent, conservative and sustainable manner to avoid excessive debt levels and/or upon borrowing being used only to fund major capital works projects with clearly demonstrable benefits for future generations.
      2. That a significant minority of the submissions received were opposed to the proposed change to the debt policy. Officers have considered each submission and consider that no submission raised any significant concerns in relation to proposed change.
      3. That while the submissions commented on both the pros and cons of the proposed, on balance, the overall weight of the public feedback was in support of the proposal.
   2. That the changes to the sustainable debt policy consulted on via the draft 2007/2008 Annual Plan and amendments to the Long-term council community plan be adopted as a final amendment to the Long-term council community plan.

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

   For the Motion:	Against the Motion:
   Cr Neil Abel Cr Leila Boyle Cr Dr Cathy Casey Cr Christine Caughey Cr Glenda Fryer Cr Dr John Hinchcliff Deputy Mayor, Cr Dr Bruce Hucker Cr Richard Northey Cr Penny Sefuiva Cr Faye Storer His Worship the Mayor, Dick Hubbard Cr Vern Walsh	Cr Doug Armstrong Cr Bill Christian Cr Toni Millar Cr Scott Milne Cr Graeme Mulholland Cr Noelene Raffills

   Cr Linda Leighton and Cr Richard Simpson were absent.

   The motion was declared CARRIED by 12 votes to 6.

8. TREASURY MANAGEMENT POLICY

   That it be a recommendation to Council:

   That the Treasury Management Policy, incorporating the liability management policy and investment policy, be adopted as a final amendment to Auckland City Council's Long-term Plan 2006-2016, subject to any changes to the sustainable debt policy that may be agreed at this meeting.

   CARRIED

9. PROPOSED FEE INCREASE - AUCKLAND CITY ENVIRONMENTS AND CITY PLANNING

   That it be a recommendation to Council:

   1. That the proposed increases to fees as set out in appendix one to the report entitled "proposed fee increase - Auckland City Environments and City Planning" by the Group managers Auckland City Environments and City Planning, dated 6 June 2007, be approved as follows:

   Schedule of fees and charges

   1. Building control

      Category	Fee type	Fees 1 July 2007 $
      Blasting	Blasting permit	33
      Building code certificate	Liquor and brothel licence applications (fee in addition to the brothel licence application fee)	280
      Building code certificate	Liquor and brothel licence applications - each additional inspection	102
      Building consent processing - certifier consents	Certifier consents - no exclusions	65
      Building consent processing - certifier consents	Certifier consents - with exclusions	116
      Building inspections	Standard (up to 40 minutes)	102
      Building inspections	Final or cladding inspection	162
      Certificate of acceptance		Deposit 949
      Certificate of compliance	Where application does not fit within standard fees	Deposit 293
      Certificate of public use	Rates are the same as for code compliance certificates
      Code compliance certificate	Code compliance certificate - where final inspection completed more than four years ago	404
      Code compliance certificate	Code compliance certificate - work < $2,000	63
      Code compliance certificate	Code compliance certificate - work $2,001-$20,000	165
      Code compliance certificate	Code compliance certificate - work $20,001-$250,000	219
      Code compliance certificate	Code compliance certificate - work $250,001-$500,000	523
      Code compliance certificate	Code compliance certificate - work > $500,000	At cost
      Compliance schedules	Compliance schedule - administration fee	158
      Compliance schedules	Compliance schedule - per feature	57
      Department of Building and Housing accreditation levy		20 cents per $1,000 worth of work
      Disconnection of fire alarm	Disconnection fee	242
      Exempt building work		144
      Extension of building consent	Application to extend the time a building consent is valid	124
      Hoarding	Per square metre	97
      Hoisting	Hoisting over footpath or public place (mobile crane or other hoisting device) - full day	129
      Hoisting	Hoisting over footpath or public place (mobile crane or other hoisting device) - half day	65
      Hoisting	Hoisting over footpath or public place (mobile crane or other hoisting device) - per month	425
      Hoisting	Hoisting over footpath or public place (mobile crane or other hoisting device) - per week	212
      Independently qualified person - application for acceptance as (three-year period)	Base fee (also renewal fee)	67
      Independently qualified person - application for acceptance as (three-year period)	Charge per system or feature for which acceptance is sought	80
      Independently qualified person register	Independently qualified person register - charge per copy	24
      Lapsing a building consent	One hour processing time and half an hour administration at current hourly rates	161
      Liquor licence fees	Liquor building certificate (building code certificate)	73
      Notice to fix	Associated with a live building consent - from 1 July 2007 the fee will include two hours' processing time, half an hour to serve notice, and two hours to follow up and close up	162b>
      Notice to fix	Not associated with a live building consent (includes evacuation of dangerous buildings) - from 1 July 2007 the fee will include two hours' processing time, half an hour to serve notice, two hours to follow up and close up, plus two final inspections and the cost of further follow-up inspections	162
      Plumbing consents	Pre-paid plumbing consents (Enerco hot water cylinder installation) - book of 10	792/b>
      Producer statements	Work over the value $1 million	283
      Producer statements	Work up to the value $1 million	176
      Project information memorandum	Without a building consent application	241
      Project information memorandum	With a building consent application	93
      Project information memorandum	Illegal building work - two hours at current hourly rates	248
      Project information memorandum - solid fuel heaters		93/b>
      Scaffolds	Scaffold permit per 20m of street frontage for each month	145
      Section 72		151/b>
      Special inspection reports	Safe and sanitary	241
      Special inspection reports	Other	At cost
      Swimming pools inspection - existing pools	Swimming pool exemptions	733
      Swimming pools inspection - existing pools	Swimming pool inspections (and re-inspections) - existing pools (from the third inspection)	190
      Swimming pools inspection - new pools	Standard fees for building consents apply
      Temporary building work	Exempt work	144
      Temporary building work	Non-exempt work	144
      Tie backs	Temporary tie backs per metre of frontage	84
      Use of street	Use of street for building operations, annual fee per square metre of street air space, plus 50 per cent of base fee per additional occupied level - central area	97b>
      Use of street	Use of street for building operations, annual fee per square metre of street air space, plus 50 per cent of base fee per additional occupied level - other areas	33
      Vehicle crossing permit	Vehicle crossing permit	220
      Waivers	Application for waivers (deposit)	475
      Warrant of fitness	Receipt, processing and issue of building warrant of fitness	105

       

      Building consent categories O, P, Q, R, S	Fees 1 July 2007 $
      Estimated value of building work $	With producer statement	Without producer statement
      500,001 - 1,000,000	597	1,129
      Additional for every 500,000 increment over 1,000,000	33	290

   2. Building consent processing

      The fee for a building consent is calculated by adding together the components of the application. All fees are in dollars.

      Project category (see below)	To lodge	Admin	Planning check	Building processing	Records	BRANZ	DBH levy	Drainage design	Building over public drain	Assess drainage video1	Flood report	Pump station	Structural engineering	Geo- technical engineering	Fire engineering
      A	82
      B	82		42	62	35			76	151	151	113	366	76	76	76
      C	82	82	140	124	53			151	151	151	113	366	76	76	76
      D	82	82	140	248	53			151	151	151	113	366	76	76	76
      E	82	82	140	62	53			151	151	151	113	366	151	302	76
      F	82	82	140	248	53			151	151	151	113	366	302	302	302
      G	82	82	140	248	53	Levy applies above $20,000		151	151	151	113	366	302	302	151
      H	82	82	140	371	73			151	151	151	302	366	604	302	302
      I	82	82	140	371	90			227	151	151	302	366	604	302	151
      J	124	82	140	495	90			227	151	151	302	366	755	302	302
      K	124	82	280	495	73			227	151	151	302	366	453	302	151
      L	124	82	280	619	73			227	151	151	302	366	604	302	151
      M	82	82	280	371	90			302	151	151	302	366	604	302	151
      N	124	82	280	743	109			378	151	151	378	366	755	302	453
      T	82		42	38
      U	82			116	73				151	142
      V				116

      Notes to table above

      All fees are in dollars, include GST and are effective from 1 July 2007.

      Categories O, P, Q, R and S are excluded from standard fees and will be subject to an estimate or deposit plus invoice.
      1 The assess drainage video fee is for one line. The fee for each subsequent line is $73.

   3. Building consent categories
      1. minor consent
      2. building work up to the value of $2,000
      3. kit-set carports and garages
      4. residential swimming pool and fencing
      5. all other building work valued $2,001 to $5,000
      6. all other building work valued $5,001 to $19,999
      7. residential alterations and additions valued $20,000 to $99,000
      8. commercial building work valued $20,000 to $99,000 (BRANZ and BIA levy starts in this category)
      9. residential alterations and additions valued $100,000 to $250,000
      10. commercial building work valued $100,000 to $250,000
      11. new dwelling (standard)
      12. new dwelling (executive)
      13. attached dwellings
      14. commercial buildings and residential alterations valued $250,001 to $499,999
      15. commercial buildings and residential alterations valued $500,000 to $1,000,000
      16. buildings valued over $1,000,000
      17. change of use and earthquake-prone buildings
      18. amendments to current consents
      19. staged consents
      20. house removals
      21. certifiers - no exclusions
      22. certifiers - with exclusions.
   4. Building consent deposits Hauraki Gulf islands

      Value of work	Deposit at 1 July 2007 $
      Up to $5,000	201
      $5,001 - $25,000	339
      $25,001 - $50,000	411
      $50,001 - $100,000	533
      $100,001 - $150,000	581
      $150,001 - $250,000	742
      $250,001 - $500,000	790

      Notes to table above

      The total cost of the consent will be calculated on a time and cost basis using the approved hourly rates.

      Plan checks will be charged at the rate charged for consents in the Auckland isthmus.

   5. Environmental health

      Category	Subcategory	Fees 1 July 2007 $
      All licences	New premise application	124
      Brothel licence	Annual fee	566
      Building consent checks		Charged at hourly rates
      Camping grounds	Application	346
      Camping grounds	Renewal	315
      Camping grounds	Transfer	63
      Display of goods outside shops	Permit	61
      Fee for re-inspection - health	Charged at hourly rates
      Food premise licence	Re-grading	50 per cent of annual fee
      Food premise licence annual fee	Small low risk A grade	231
      Food premise licence annual fee	Small low risk B grade	300
      Food premise licence annual fee	Small low risk D grade	369
      Food premise licence annual fee	Small low risk E grade	462
      Food premise licence annual fee	Large low risk A grade	346
      Food premise licence annual fee	Large low risk B grade	451
      Food premise licence annual fee	Large low risk D grade	554
      Food premise licence annual fee	Large low risk E grade	692
      Food premise licence annual fee	Small medium risk A grade	462
      Food premise licence annual fee	Small medium risk B grade	600
      Food premise licence annual fee	Small medium risk D grade	739
      Food premise licence annual fee	Small medium risk E grade	923
      Food premise licence annual fee	Large medium risk A grade	692
      Food premise licence annual fee	Large medium risk B grade	900
      Food premise licence annual fee	Large medium risk D grade	1,108
      Food premise licence annual fee	Large medium risk E grade	1,385
      Food premise licence annual fee	Small high risk A grade	692
      Food premise licence annual fee	Small high risk B grade	900
      Food premise licence annual fee	Small high risk D grade	1,108
      Food premise licence annual fee	Small high risk E grade	1,385
      Food premise licence annual fee	Large high risk A grade	1,039
      Food premise licence annual fee	Large high risk B grade	1,350
      Food premise licence annual fee	Large high risk D grade	1,662
      Food premise licence annual fee	Large high risk E grade	2,077
      Food stalls	Food stalls - one month	124
      Food stalls	Food stalls - six months	173
      Food stalls	Food stalls - annual	288
      Food stalls	Food stalls - day	25
      Funeral directors - mortuary licence	Annual fee	346
      Hairdressers	Hairdressers - transfer fee	63
      Hairdressers	Hairdressers all premises per annum	160
      Hazardous substances - inspections	Bulk tank demolished	122
      Hazardous substances - inspections	Bulk tank for repair and maintenance	122
      Hazardous substances - inspections	Bulk tank installed	143
      Hazardous substances - inspections	Class 2 gas installation (other)	91
      Hazardous substances - inspections	CNG storage cylinders installed	122
      Hazardous substances - inspections	Inspection of any dangerous goods area	91
      Hazardous substances - inspections	LPG storage tank installed	122
      Hazardous substances - inspections	LPG/CNG equipment installed	60
      Hazardous substances - inspections	Maintenance of pipe work	60
      Hazardous substances - inspections	Oil burning equipment - installation	79
      Hazardous substances - inspections	Oil burning equipment - maintenance	60
      Hazardous substances - inspections	Pump installed and re-located	60
      Hazardous substances - inspections	Pump removal	40
      Hazardous substances - inspections	Pump replaced or fixed	60
      Hazardous substances - inspections	Storage tank installed	123
      Hazardous substances - inspections	Storage tank replaced	143
      Hazardous substances - inspections	Tank removal	79
      Hazardous substances - inspections	Test pipelines to bulk installations	91
      Hazardous substances - inspections	Transfer or copy of any licence	44
      Health and bathhouse		231
      Health protection licence	Basic (single process)	162
      Health protection licence	Multi basic (multiple processes)	231
      Health protection licence	High risk (involving skin penetration)	231
      Hourly rate for festival events		124
      Inspection fee		124
      Mobile food vendor fee		25
      Mobile food - bun runner		25
      Offensive trades	Application - annual	288
      Offensive trades	Renewal	288
      Street trading	Cafe seating on pavement - fee per chair	5
      Street trading	Charity or fundraising stalls	no charge
      Street trading	Long-term trading in a public place (over 12 months) - permit and monthly fee set within criteria	157
      Street trading	Short-term trading in a public place (up to 12 months) - permit and monthly fee set within criteria	105
      Street trading	Hawkers	28
      Street trading	Mobile shops	136
      Transfer fee - all licences		69

   6. Property information

      Category	Fee Type	Fees 1 July 2007 $
      Aerials	GIS plots - colour aerials - 1997	30
      Faxes	Faxes to Great Barrier Island - one to five pages (per page)	0.60
      Faxes	Faxes to Great Barrier Island - six to 10 pages (per page)	0.40
      Faxes	Receiving faxes from Great Barrier Island (per page)	0.40
      LIMS	Standard LIM (five days)	232
      LIMS	Urgent LIM (four hours)	298
      Print and copy	A3 EDMS or microfilm	4
      Print and copy	Coin operated photocopier A3	0.50
      Print and copy	Coin operated photocopier A4	0.30
      Print and copy	Email of site file (one item)	Applicable copy price
      GIS maps	Public drainage, water services and contours on one map	40
      GIS maps	A contours map, public drainage map and special features map on the same map for the same property	49
      Site information charge	Site information charge - for each site researched (assisted by staff for up to 15 minutes). Thereafter charged on a time and cost basis	25
      Site information charge	Site information charge - for each site researched (self service)	12.50

   7. Bonds

      Bonds	Fees 1 July 2007 $
      Processing bond applications relating to subdivision consent, including return of money on satisfactory completion of work	Deposit 799
      Application fee for bond relating to a land use consent (this is the base fee, the actual charge may be greater depending on legal inputs)	621
      Administration of a bond relating to a land-use consent, including release of the bond	597
      Additional costs from reporting to the appropriate council committee about bonds for works of over $50,000	Actual time at staff charge-out rates
      Processing an application to extend the time limit on an existing bond	107
      Processing an application for the partial release of a bond	332
      Additional costs relating to a bond that is defaulted on	Actual time at staff charge-out rates

   8. City planning - land use CBD

      		Fees from 1 July 2007 $
      Resource consent and private plan change applications
      Planning staff, except assistant planners		140/hour
      Assistant planners		99/hour
      Secretarial, administration and support staff		81/hour
      Deposits for resource consent applications
      Level one application fee (simple, certificate of compliance, trees)		920
      Level two deposit (standard but more complex)		3,139
      Level three deposit (notified - up to five residential units)		6,000
      Level four deposit (notified - >5 and <15 residential units)		12,000
      Level five deposit (notified - >15 residential units)		18,000
      Deposits for plan change applications
      On lodgement		5,023
      Plus, if council agrees to process (minor)		1,412
      Plus, if council agrees to process (major)		12,557

   9. Engineering

      Category	Fee type	Fees 1 July 2007 $000
      Drainage	Drainage	Deposit 1,451
      Engineering approvals	Up to two lots	Deposit 580
      Engineering approvals	Three to five lots	Deposit 1,160
      Engineering approvals	6 to 10 lots	Deposit 3,625
      Engineering approvals	11 to 20 lots	Deposit 5,076
      Engineering approvals	21 to 50 lots	Deposit 10,152
      Engineering approvals	51 lots or over	Deposit 14,534
      Producer statements	Engineering related - per producer statement	50
      Right of way	Engineering design right of way or jointly owned driveway	Deposit 400
      Section 36	Section 36 fee	82

   10. Hourly rates - Auckland City Environments staff

       	Rates 1 July 2007 $
       Planners, subdivision staff, licensing staff	140
       Engineering staff	155
       Building officers, building inspectors, incident investigators, resource consent monitoring staff, environmental health officers	124
       Secretarial and administrative staff	74

   11. Land use Hauraki Gulf islands (HGI)

       Fee type	Fees 1 July 2007 $
       Section 127 Resource Management Act 1991 variation or cancellation	1,000
       Section 125 Resource Management Act 1991 - to extend the period a consent is valid	1,000
       Non-notified land use consent (controlled activities)	Deposit 600
       Non-notified land use consent (discretionary and non-complying activities)	Deposit 1,000
       Notified applications	Deposit 6,000
       Confirmation of compliance certificate (Resource Management Act 1991)	Deposit 500

   12. Land use Auckland isthmus

       Category	Fee type	Fees 1 July 2007 $
       Land use isthmus	Non-notified developments up to five units (excluding on the Hauraki Gulf islands) - the total cost charged on a time cost basis using hourly rates	Deposit 1,600
       Land use isthmus	Deposit for non-notified consent for developments of more than five units, and up to and including 15 units (excluding on the Hauraki Gulf islands) - the total cost is charged on a time-cost basis using hourly rates	Deposit 2,000
       Land use isthmus	Deposit for non-notified consent for developments of more than 15 units (excluding on the Hauraki Gulf islands) - the total cost is charged on a time-cost basis using the hourly rates	Deposit 3,000
       Land use isthmus	Notified - developments up to five units	Deposit 6,000
       Land use isthmus	Deposit for notified consents - developments of more than five units, and up to and including 15 units	Deposit 12,000
       Land use isthmus	Deposit for notified consents - developments of more than 15 units	Deposit 18,000
       Land use isthmus	Outline plans or drawings lodged for consideration - total cost charged on a time cost basis using approved hourly rates	Deposit 1,000
       Land use isthmus	Monitoring fee	Charged at hourly rates
       Land use isthmus	Existing use rights assessment - central area	1,036
       Land use isthmus	Existing use rights assessment - other areas	Deposit 500
       Land use isthmus	Confirmation of compliance certificate (Resource Management Act 1991)	Deposit 500
       Land use isthmus	Consent to dispensation or exemption or non-compliance with Auckland City Council's consolidated bylaw 1991	Deposit 1,000
       Land use isthmus	Section 127 Resource Management Act 1991 variation or cancellation	1,000
       Land use isthmus	Section 125 Resource Management Act 1991 - to extend the period a consent is valid	1,000
       Land use isthmus	Lodging an objection under section 357 of the Resource Management Act 1991	No charge
       Overseas investment certificate	Required by overseas investors to confirm the property meets the council's requirements	290
       Special inspections reports	Planning and building	At cost
       Liquor licence fees	Liquor planning certificate	146

   13. Animal control

       Fee type	Fees 1 July 2007 $
       Application after 31 July 2007	Plus 50 per cent
       National dog database levy - fee per registration	2
       Class A - neutered dog with dog owner licence	60 (although if the renewal is paid before 31 July 2007, the fee is 40)
       Class B - neutered dog	98 (although if the renewal is paid before 31 July 2007, the fee is 65)
       Class C - un-neutered dog with dog owner licence	127 (although if the renewal is paid before 31 July 2007, the fee is 85)
       Class D - un-neutered dog without dog owner licence	167 (although if the renewal is paid before 31 July 2007, the fee is 111)
       Class E - special purpose dog	No fee
       Class F - working dog	60 (although if the renewal is paid before 31 July 2007, the fee is 40)
       Dangerous dogs	Fee plus 150 per cent of fee
       Permit to keep more than one dog	47
       Probationary owners	As in classes A to F
       Replacement disc	7
       Small animal impounding (rabbits, ferrets, fowl)	26
       Impounding - sustenance fee (small animal) per day	7
       Impounding - sustenance fee per day (stock)	20
       Driving or leading fee	40
       Stock impounding fee	40
       First impounding - registered dog	33
       First impounding - unregistered dog	59
       Second impounding - registered dog	59
       Second impounding - unregistered dog	111
       Third impounding - registered dog	111
       Third impounding - unregistered dog	189
       Sustenance for each day or part day of dog impoundment	18
       Additional fees for after hours-impoundment - registered dog	20
       Additional fees for after hours-impoundment - unregistered dog	33
       Impounding - surrender fee	26
       Impounding - return to owner fee (transport)	14

   14. Miscellaneous

       Category	Fee type	Fees 1 July 2007 $
       Street banners	Application fee	133

   15. Subdivision

       Consent type	Fees 1 July 2007 $
       Boundary adjustment	Deposit 636
       Completion certificate (section 224C of the Resource Management Act 1991) simple (no engineering input required)	167
       Completion certificate (section 224C of the Resource Management Act 1991) complex (engineering input required)	Deposit 479
       Freehold subdivision of existing or approved complying development	Deposit 950
       Freehold subdivision of new vacant lots	Deposit 1,500
       Freehold subdivision of existing or approved development with development control modifications, eg height in relation to boundary, coverage etc	Deposit 1,500
       Right of way	391
       Survey plan	263
       Unit title	Deposit 972
       Variations and amendments	Deposit 1,500
       Cross-lease - first stage	Deposit 1,500
       Cross-lease - any subsequent stage	Deposit 674
       Deposit for combined application for land use consent and subdivision consent	Deposit 2,000
       Removing building line restrictions, creating easement certificate, cancelling easements, amalgamating certificates of title, creating unit title certificate (section 5(1)(g) the Resource Management Act 1991)	350

   2. That it be noted that the Auckland City Environments and City Planning fee increases raise compliance costs for citizens and every endeavour must be made to minimise these costs within an acceptable risk framework.

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

      For the Motion:	Against the Motion:
      Cr Neil Abel Cr Doug Armstrong Cr Leila Boyle Cr Dr Cathy Casey Cr Christine Caughey Cr Glenda Fryer Cr Dr John Hinchcliff Deputy Mayor, Cr Dr Bruce Hucker Cr Toni Millar Cr Scott Milne Cr Richard Northey Cr Noelene Raffills Cr Penny Sefuiva His Worship the Mayor, Dick Hubbard Cr Vern Walsh	Cr Bill Christian Cr Graeme Mulholland Cr Faye Storer

   Cr Linda Leighton and Cr Richard Simpson were absent.

   The motion was declared CARRIED by 15 votes to 3.

   That items 11, 12, 13, 14, 15 and 17 be considered at this point.

   CARRIED

10. ESTABLISHMENT OF A JOINT VENTURE WITH BRITOMART GROUP

    Secretarial Note:

    This item was considered after the confidential item relating to this matter.

    That it be a recommendation to Council:

    1. That Auckland City Council enter a 50:50 joint venture with Britomart Group to own and operate the Britomart carpark as proposed in the Statement of Proposal included in the Auckland City Council draft Annual Plan 2007/2008 and attached in appendix one of the report entitled "Establishment of a joint venture with Britomart Group" by the Development Analyst dated 15 June 2007.
    2. That the Mayor, Deputy Mayor and Chairperson of the Finance and Corporate Business Committee review and approve the final terms of the variation to the Development Deed, joint venture documentation and other necessary legal documentation to complete the transaction.

    CARRIED

    Councillor Caughey requested her vote against the above resolution be recorded.

11. CONSULTATION AND HEARINGS PROCESS FOR THE 2007/2008 DRAFT ANNUAL PLAN

    The Chairman moved:

    That it be a recommendation to Council:

    That following consideration of both written and oral submissions on the draft 2007/2008 Annual Plan, Council believes due consideration has been given to the various requests over the deliberation period, and accordingly resolves:

    1. That the schedule of reports requested for committees contained within Appendix B of the report from the Democracy Advisor, dated 12 June 2007, be confirmed.
    2. That the schedule of individual submitter responses to the draft annual plan be adopted, noting that the schedule will be updated to reflect any decisions emanating from the 21 June 2007 Combined Committees meeting.
    3. That the report on Metrowater that has already been requested to go to the Annual Plan Direction Setting meeting in November 2007 include consideration of:
       1. The possibility of implementing progressive pricing with a lower level of pricing for an appropriate amount of water use and a higher price per unit of water above that level.
       2. The possibility of Metrowater having responsibility for stormwater assets and maintenance with an appropriate level of bulk funding from Council for this purpose.
       3. Metrowater's policy and City Council involvement in decisions to restrict, and remove restrictions on water supply.
       4. The possibility of Metrowater's wastewater charges being bulk funded by Council.
       5. Whether proposed charitable payments should be reduced or eliminated in future years.
       6. The implications for Council's overall revenue and budget of any changes in Council income from Metrowater.
       7. The other issues listed in resolution of the Finance and Corporate Business Committee on 23 May 2007 being:

          E. That a specific report on Metrowater Statement of Intent be prepared for the Annual Plan Direction Setting meeting in November to include:

          1. Return on public investment via a charitable payment mechanism from the 2008/2009 year onwards
          2. Taxation issues
          3. The synergy (present and future) between stormwater expenditure and Metrowater's (present and future) especially the case for Metrowater assuming more responsibility for stormwater
          4. The effect of conservation (lower per capita consumption) on water prices
          5. Metrowater's customer pricing model
          6. Any other issues including legislative implications.

    Councillor Abel moved the following amendment:

    That Metro Water Limited be structured as a council controlled Stand Alone Business Unit (SABU).

    Note: Metro Water Limited is currently a Charitable Local Authority Trading Enterprise (LATE) and subject to income tax.

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

    For the Amendment:	Against the Amendment:
    Cr Neil Abel Cr Dr Cathy Casey	Cr Doug Armstrong Cr Leila Boyle Cr Christine Caughey Cr Bill Christian Cr Glenda Fryer Cr Dr John Hinchcliff Deputy Mayor, Cr Dr Bruce Hucker Cr Toni Millar Cr Scott Milne Cr Graeme Mulholland Cr Richard Northey Cr Noelene Raffills Cr Penny Sefuiva His Worship the Mayor, Dick Hubbard Cr Vern Walsh

    Cr Faye Storer abstained from voting.

    Cr Linda Leighton and Cr Richard Simpson were absent.

    The motion was declared LOST by 15 votes to 2, with 1 abstention.

    Councillor Armstrong moved the following amendment to replace C(iv):

    4. The possibility of Metrowater's wastewater charges being bulk funded by Council, whilst ensuring that the charges continue to be funded on a user pays basis.

    The amendment was put by a show of hands and declared LOST by 10 votes to 7.

    Councillor Millar moved the following amendment to replace C:

    3. That the report on Metrowater that has already been requested to go to the Annual Plan Direction Setting meeting in November 2007 be undertaken by an independent professional, to be made public, and include consideration of:
       1. The possibility of implementing progressive pricing with a lower level of pricing for an appropriate amount of water use and a higher price per unit of water above that level.
       2. The possibility of Metrowater having responsibility for stormwater assets and maintenance with an appropriate level of bulk funding from Council for this purpose.
       3. Metrowater's policy and City Council involvement in decisions to restrict, and remove restrictions on water supply.
       4. The possibility of Metrowater's wastewater charges being bulk funded by Council.
       5. Whether proposed charitable payments should be reduced or eliminated in future years.
       6. The implications for Council's overall revenue and budget of any changes in Council income from Metrowater.
       7. The other issues listed in resolution of the Finance and Corporate Business Committee on 23 May 2007 being:
          5. That a specific report on Metrowater Statement of Intent be prepared for the Annual Plan Direction Setting meeting in November to include:
             1. Return on public investment via a charitable payment mechanism from the 2008/2009 year onwards
             2. Taxation issues
             3. The synergy (present and future) between stormwater expenditure and Metrowater's (present and future) especially the case for Metrowater assuming more responsibility for stormwater
             4. The effect of conservation (lower per capita consumption) on water prices
             5. Metrowater's customer pricing model
             6. Any other issues including legislative implications.

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

    For the Amendment:	Against the Amendment:
    Cr Doug Armstrong Cr Christine Caughey Cr Toni Millar Cr Scott Milne Cr Graeme Mulholland Cr Noelene Raffills Cr Faye Storer	Cr Neil Abel Cr Leila Boyle Cr Dr Cathy Casey Cr Bill Christian Cr Glenda Fryer Cr Dr John Hinchcliff Deputy Mayor, Cr Dr Bruce Hucker Cr Richard Northey Cr Penny Sefuiva His Worship the Mayor, Dick Hubbard Cr Vern Walsh

    Cr Linda Leighton and Cr Richard Simpson were absent.

    The amendment was declared LOST by 11 votes to 7.

    The Chairman put the following substantive motion:

    That it be a recommendation to Council:

    That following consideration of both written and oral submissions on the draft 2007/2008 Annual Plan, Council believes due consideration has been given to the various requests over the deliberation period, and accordingly resolves:

    1. That the schedule of reports requested for committees contained within Appendix B of the report from the Democracy Advisor, dated 12 June 2007, be confirmed.
    2. That the schedule of individual submitter responses to the draft annual plan be adopted, noting that the schedule will be updated to reflect any decisions emanating from the 21 June 2007 Combined Committees meeting.
    3. That the report on Metrowater that has already been requested to go to the Annual Plan Direction Setting meeting in November 2007 include consideration of:
       1. The possibility of implementing progressive pricing with a lower level of pricing for an appropriate amount of water use and a higher price per unit of water above that level.
       2. The possibility of Metrowater having responsibility for stormwater assets and maintenance with an appropriate level of bulk funding from Council for this purpose.
       3. Metrowater's policy and City Council involvement in decisions to restrict, and remove restrictions on water supply.
       4. The possibility of Metrowater's wastewater charges being bulk funded by Council.
       5. Whether proposed charitable payments should be reduced or eliminated in future years.
       6. The implications for Council's overall revenue and budget of any changes in Council income from Metrowater.
       7. The other issues listed in resolution of the Finance and Corporate Business Committee on 23 May 2007 being:
          5. That a specific report on Metrowater Statement of Intent be prepared for the Annual Plan Direction Setting meeting in November to include:
             1. Return on public investment via a charitable payment mechanism from the 2008/2009 year onwards
             2. Taxation issues
             3. The synergy (present and future) between stormwater expenditure and Metrowater's (present and future) especially the case for Metrowater assuming more responsibility for stormwater
             4. The effect of conservation (lower per capita consumption) on water prices
             5. Metrowater's customer pricing model
             6. Any other issues including legislative implications.

    CARRIED

    RATING POLICIES

12. RATES POLICY FOR 2007/2008

    The Chairman moved:

    That it be a recommendation to Council:

    1. That the overall citywide rate increase be 3.6% (5.4% for residential properties) to fund the budget for 2007/2008 recommended as outlined in the separate report in this agenda entitled "Update on budgets for 2007/2008", consulted on in the draft 2007/2008 annual plan.
    2. That the $95 uniform annual general charge (UAGC) for 2007/2008 be retained; as consulted on in the draft 2007/2008 annual plan.
    3. That the next step of the general rate differential strategy be applied in 2007/2008, as consulted on in the draft 2007/2008 annual plan.
    4. That the central business district (CBD) targeted rate for the CBD non-residential group be increased to match the group's reduction in the general rate, which results from implementing the next step in the long-term differential strategy for the general rate, consulted on in the draft 2007/2008 annual plan. The targeted rate will be assessed on annual value and will generate revenue of $8.3 million (GST exclusive) for 2007/2008.
    5. That the central business district (CBD) targeted rate to apply to CBD residential ratepayers continue to be applied as a fixed charge of $52 (including GST) per residential unit for 2007/2008, as consulted on in the draft 2007/2008 annual plan.
    6. That the citywide targeted rate for refuse collection be increased to $199 per service for 2007/2008 to cover the increases in the existing refuse services and fund the waste minimisation initiatives adopted to speed up achieving the vision.
    7. That a new remission policy be introduced from 2007/2008 to apply in two parts:
       1. That $152 for the cost of the rubbish service component and the biennial inorganic collection be remitted from the refuse collection targeted rate for large residential blocks that have an approved alternative rubbish collection service.
       2. That an additional $27 for the cost of the recycling service be remitted for large residential blocks that have an approved recycling service.
    8. That the discount rate for early payment of rates for 2007/2008 be set at 2.83%; this will be applied to 2007/2008 rates paid in full by the first rate instalment date [a discount rate of 2.83% is equivalent to an 11.19% return to the ratepayers (before tax)], as consulted on in the draft 2007/2008 annual plan.
    9. That the five targeted rates for city development, transport, open spaces and volcanic cones; community development and housing; and heritage and urban design, be changed to generate the following revenues in 2007/2008:
       1. City development from $3.5 million to $2.4 million (-30.8% decrease, as the strategic asset fund will fund some of these projects in 2007/2008).
       2. Transport from $15.7 million to $21.5 million (36.6% increase).
       3. Open spaces and volcanic cones from $3.0 million to $3.5 million (16.6% increase).
       4. Heritage and urban design from $1.5 million to $1.6 million (9.6% increase).
       5. Community development and housing from $2.4 million to $4.3 million (77.3% increase).
    10. That the Mainstreet budgets for 2007/2008 be noted as approved under item 16 of the 21 June 2007 Combined Committees minutes.
    11. That the text for the rating policy statements (provided separately in the 21 June 2007 Combined Committees agenda under item 17.2) be included in the funding impact statement for the final 2007/2008 annual plan.
    12. That the four rates instalment dates for the 2007/2008 financial year be confirmed as:
        1. 20 August 2007
        2. 20 November 2007
        3. 20 February 2008
        4. 20 May 2008

        The instalment dates are included in section K of the rates resolution in Appendix 1 of the addendum report entitled 'Rates Policy for 2007/2008 - Rates Resolution' by the Finance and Revenue Strategy Manager, dated 18 June 2007.

    13. That a 10 per cent penalty for late rates payments for the 2007/2008 financial year be approved. The rates penalty regime for the 2007/2008 financial year is included in section L of the rates resolution in Appendix 1 of the addendum report entitled 'Rates Policy for 2007/2008 - Rates Resolution' by the Finance and revenue strategy manager, dated 18 June 2007.
    14. That the rates resolution for the 2007/2008 financial year be adopted, which is attached as Appendix 1 to the addendum report entitled 'Rates Policy for 2007/2008 - Rates Resolution' by the Finance and revenue strategy manager dated, 18 June 2007.

    Councillor Caughey moved the following amendment to replace resolution B:

    2. That the uniform annual general charge (UAGC) for 2007/2008 be doubled to $190.

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

    For the Amendment:	Against the Amendment:
    Cr Doug Armstrong Cr Christine Caughey Cr Bill Christian Cr Toni Millar Cr Scott Milne Cr Graeme Mulholland Cr Faye Storer	Cr Neil Abel Cr Leila Boyle Cr Dr Cathy Casey Cr Glenda Fryer Cr Dr John Hinchcliff Deputy Mayor, Cr Dr Bruce Hucker Cr Richard Northey Cr Penny Sefuiva His Worship the Mayor, Dick Hubbard Cr Vern Walsh

    Cr Linda Leighton, Cr Noelene Raffills and Cr Richard Simpson were absent.

    The amendment was declared LOST by 9 votes to 8.

    Councillor Milne moved the following amendment to replace resolution B with:

    2. That in the interest of fairness the 3.6% average rate increase be collected by an increase in the uniform annual general charge (UAGC) for 2007/2008 noting that up to 30% of rates can be collected by way of a UAGC and that Auckland City Council's UAGC is lower than other comparable cities.

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

    For the Amendment:	Against the Amendment:
    Cr Doug Armstrong Cr Christine Caughey Cr Bill Christian Cr Toni Millar Cr Scott Milne Cr Graeme Mulholland Cr Noelene Raffills Cr Faye Storer	Cr Neil Abel Cr Leila Boyle Cr Dr Cathy Casey Cr Glenda Fryer Cr Dr John Hinchcliff Deputy Mayor, Cr Dr Bruce Hucker Cr Richard Northey Cr Penny Sefuiva His Worship the Mayor, Dick Hubbard Cr Vern Walsh

    Cr Linda Leighton and Cr Richard Simpson were absent.

    The amendment was declared LOST by 10 votes to 8.A division was called for

    Councillor Fryer moved the following amendment to replace resolution F with:

    6. That the citywide targeted rate for refuse collection be increased to $179 per service for 2007/2008 to cover the increases in the existing refuse services and fund from general rates the waste minimisation initiatives adopted to speed up achieving the vision.

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

    For the Amendment:	Against the Amendment:
    Cr Leila Boyle Cr Glenda Fryer Cr Richard Northey	Cr Neil Abel Cr Doug Armstrong Cr Dr Cathy Casey Cr Christine Caughey Cr Bill Christian Cr Dr John Hinchcliff Deputy Mayor, Cr Dr Bruce Hucker Cr Toni Millar Cr Scott Milne Cr Graeme Mulholland Cr Noelene Raffills Cr Penny Sefuiva Cr Faye Storer His Worship the Mayor, Dick Hubbard Cr Vern Walsh

    Cr Linda Leighton and Cr Richard Simpson were absent.

    The amendment was declared LOST by 15 votes to 3.

    The Chairman put the following substantive motion, with A and I being put separately:

    That it be a recommendation to Council:

    1. That the overall citywide rate increase be 3.6% (5.4% for residential properties) to fund the budget for 2007/2008 recommended as outlined in the separate report in this agenda entitled "Update on budgets for 2007/2008", consulted on in the draft 2007/2008 annual plan.

       CARRIED

       Councillor Millar requested her vote against resolution A be recorded.

    2. That the $95 uniform annual general charge (UAGC) for 2007/2008 be retained; as consulted on in the draft 2007/2008 annual plan.
    3. That the next step of the general rate differential strategy be applied in 2007/2008, as consulted on in the draft 2007/2008 annual plan.
    4. That the central business district (CBD) targeted rate for the CBD non-residential group be increased to match the group's reduction in the general rate, which results from implementing the next step in the long-term differential strategy for the general rate, consulted on in the draft 2007/2008 annual plan. The targeted rate will be assessed on annual value and will generate revenue of $8.3 million (GST exclusive) for 2007/2008.
    5. That the central business district (CBD) targeted rate to apply to CBD residential ratepayers continue to be applied as a fixed charge of $52 (including GST) per residential unit for 2007/2008, as consulted on in the draft 2007/2008 annual plan.
    6. That the citywide targeted rate for refuse collection be increased to $199 per service for 2007/2008 to cover the increases in the existing refuse services and fund the waste minimisation initiatives adopted to speed up achieving the vision.
    7. That a new remission policy be introduced from 2007/2008 to apply in two parts:
       1. That $152 for the cost of the rubbish service component and the biennial inorganic collection be remitted from the refuse collection targeted rate for large residential blocks that have an approved alternative rubbish collection service.
       2. That an additional $27 for the cost of the recycling service be remitted for large residential blocks that have an approved recycling service.
    8. That the discount rate for early payment of rates for 2007/2008 be set at 2.83%; this will be applied to 2007/2008 rates paid in full by the first rate instalment date [a discount rate of 2.83% is equivalent to an 11.19% return to the ratepayers (before tax)], as consulted on in the draft 2007/2008 annual plan.

       CARRIED

    9. That the five targeted rates for city development, transport, open spaces and volcanic cones; community development and housing; and heritage and urban design, be changed to generate the following revenues in 2007/2008:
       1. City development from $3.5 million to $2.4 million (-30.8% decrease, as the strategic asset fund will fund some of these projects in 2007/2008).
       2. Transport from $15.7 million to $21.5 million (36.6% increase).
       3. Open spaces and volcanic cones from $3.0 million to $3.5 million (16.6% increase).
       4. Heritage and urban design from $1.5 million to $1.6 million (9.6% increase).
       5. Community development and housing from $2.4 million to $4.3 million (77.3% increase).

       CARRIED

    10. That the Mainstreet budgets for 2007/2008 be noted as approved under item 16 of the 21 June 2007 Combined Committees minutes.
    11. That the text for the rating policy statements (provided separately in the 21 June 2007 Combined Committees agenda under item 17.2) be included in the funding impact statement for the final 2007/2008 annual plan.
    12. That the four rates instalment dates for the 2007/2008 financial year be confirmed as:
        1. 20 August 2007
        2. 20 November 2007
        3. 20 February 2008
        4. 20 May 2008

        The instalment dates are included in section K of the rates resolution in Appendix 1 of the addendum report entitled 'Rates Policy for 2007/2008 - Rates Resolution' by the Financial and revenue strategy manager, dated 18 June 2007.

    13. That a 10 per cent penalty for late rates payments for the 2007/2008 financial year be approved. The rates penalty regime for the 2007/2008 financial year is included in section L of the rates resolution in Appendix 1 of the addendum report entitled 'Rates Policy for 2007/2008 - Rates Resolution' by the Financial and revenue strategy manager, dated 18 June 2007.
    14. That the rates resolution for the 2007/2008 financial year be adopted, which is attached as Appendix 1 to the addendum report entitled 'Rates Policy for 2007/2008 - Rates Resolution' by the Finance and revenue strategy manager dated, 18 June 2007.

    CARRIED

13. RATES POSTPONEMENT AND REBATES SCHEMES FOR 2007/2008

    That it be a recommendation to Council:

    1. That the budget for the extended rates rebate scheme (ERRS) be reduced from $850,000 to $350,000 (as reflected in the draft 2007/2008 Annual Plan), while retaining the existing ERRS criteria.
    2. That the modified rates postponement policy be adopted, noting the policy is based solely on the ratepayer's equity in the property which would allow most ratepayers who own their own home to have access to the scheme.

    CARRIED

14. RURAL AND HAURAKI GULF RATING ISSUES

    That it be a recommendation to Council:

    That the following policies that were consulted on in the draft 2007/2008 Annual Plan be adopted as follows:

    1. A remission policy for private land voluntarily covenanted under the QEII National Trust Act (a 100% remission for the covenanted portion of land).
    2. A postponement policy for commercial farmland (a postponement of 25% of the rates for farms over 12 hectares that are GST registered - written off after five years if the property use remains the same).
    3. A postponement policy for Great Barrier Island commercial properties (on the difference between the rates based on rateable value and the rates based on 80% of annual rental - written off after five years if property use remains the same).

    CARRIED

15. REMISSION OF RATES ON MAORI FREEHOLD LAND

    The Chairman moved:

    That it be a recommendation to Council:

    That the Maori freehold land rates remission policy be adopted as follows:

    1. A full remission of rates be provided on land that is undeveloped.
    2. A remission of rates on land that is developed and used by iwi members for non-commercial purposes (such as papakainga housing, community facilities, marae and associated infrastructure), which would 'cap' the rates using a low percentile of property values in the city.

    Councillor Armstrong moved the following amendment to (i):

    That the Maori freehold land rates remission policy be adopted as follows:

    1. A full remission of rates be provided on land that is undeveloped provided the land is available for unrestricted public use.

    The amendment was put by a show of hands and declared LOST by 12 votes to 5.

    The Chairman put the following substantive motion:

    That it be a recommendation to Council:

    That the Maori freehold land rates remission policy be adopted as follows:

    1. A full remission of rates be provided on land that is undeveloped.
    2. A remission of rates on land that is developed and used by iwi members for non-commercial purposes (such as papakainga housing, community facilities, marae and associated infrastructure), which would 'cap' the rates using a low percentile of property values in the city.

    CARRIED

16. MAINSTREET RATES 2007/2008

    That it be a recommendation to Council:

    1. That the following Mainstreet budgets for the 2007/2008 year be approved and included in the Long-term council community plan for 2006-2016:

    Mainstreet	2007/08
    Programme	Budgets
    	(excl GST)
    Avondale	$96,000
    Blockhouse Bay	$36,603
    Eden Valley	$77,500
    Ellerslie	$74,580
    Glen Innes	$135,280
    Heart of the City	$2,852,840
    Karangahape Road	$225,500
    Mt Eden	$66,701
    Newmarket	$860,000
    Onehunga	$349,920
    Otahuhu	$330,000
    Panmure	$302,500
    Parnell	$268,015
    Ponsonby	$200,000
    Remuera	$194,700
    Rosebank	$165,000
    St Heliers	$109,000
    Total	$6,344,139

    2. That the boundaries of all Mainstreet programmes remain the same as those for the 2006/2007 financial year (Refer to Appendix 1 of the report to Combined Committees entitled "Mainstreet rates 2007/2008" by the Mainstreet advisor, dated 24 May 2007).

    CARRIED

    ANNUAL PLAN DOCUMENT

17. 2007/2008 ANNUAL PLAN AND AMENDMENTS TO OUR LONG-TERM PLAN 2006-2016

    That it be a recommendation to Council:

    1. That the Auckland City Council's Annual Plan 2007/2008 be adopted with the following statements added:
       1. That the council will take every opportunity to advocate for the underground rail link from Britomart to Mt Eden.
       2. That Auckland City Council is a good employer.
    2. That the Amendments to Auckland City Council's Long-term Plan 2006-2016 document be adopted.
    3. That it be noted that all submissions raised regarding the content of the annual plan will be considered by officers when preparing the 2008/2009 annual plan template.
    4. That the Chairman of the Finance and Corporate Business Committee and the General Manager Finance be delegated authority to make changes to both the 2007/2008 Annual Plan and the Amendments to Auckland City council's Long-term plan 2006-2016 documents, that reflect the decisions made at the 21 June Combined Committees meeting and other minor editorial changes.

    CARRIED

    That items C1, C2 and 10 be considered at this point.

    CARRIED

    17.1. 2007/2008 ANNUAL PLAN

    That it be a recommendation to Council:

    That the 2007/2008 Annual Plan document be received subject to amendments made by Combined Committees at its 21 June 2007 Combined Committees meeting.

    CARRIED

    17.2. AMENDMENTS TO OUR LONG-TERM PLAN 2006-2016

    That it be a recommendation to Council:

    That the "amendments to the Auckland City Council's Long-term plan 2006-2016" document be received subject to the amendments made by the Combined Committees at its 21 June 2007 Combined Committees meeting.

    CARRIED

18. 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 are 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	Britomart carpark relocation and establishment of a joint venture with Britomart Group	Public conduct of matter would be likely to result in disclosure of information for which good reason to withhold exists under section 7.	S7(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 acquisitions and operating information which if released to the public would prejudice the joint ventures' ability to operate commercially. S7(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 detailed commercial information relating to a third party, the Britomart Group which if released to the public would disadvantage their commercial position. S7(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 detailed commercial information, which if released to the public, would compromise ongoing negotiations.	S48(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	Update on Budgets for 2007/2008	Public conduct of matter would be likely to result in disclosure of information for which good reason to withhold exists under section 7.	S7(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 figures stated in this appendix, if released to the public, would compromise the commercial activities of the Edge and Auckland Netball that could affect funding negotiations with other parties. Section 7(2)(c)(i) To protect information which is subject to an obligation of confidence or which any person has been or could be compelled to provide under the authority of any enactment, where the making available of the information would be likely to prejudice the supply of similar information, or information from the same source, and it is in the public interest that such information should continue to be supplied. In particular, there is detailed financial information from the Auckland Netball Association. S7(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 ticket pricing, staff and ITC budget information from the EdgeŽ and other third parties, which if released to the public, would disadvantage Auckland City Council, the EdgeŽ and other third parties. This information is subject to potential ongoing negotiations.	S48(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 Chairman declared the meeting closed at 2.34pm.