MINUTES OF AN EXTRAORDINARY MEETING OF THE FINANCE AND CORPORATE BUSINESS COMMITTEE HELD ON THURSDAY, 21 JUNE 2007 AT 8:34AM

1. APOLOGIES

   That the apologies from Councillor Simpson for non-attendance and from Councillor Millar for lateness be accepted.

   CARRIED

2. EXTRAORDINARY BUSINESS

   There was no extraordinary business.

3. PUBLIC FORUM

   3.1. MS P BRIGHT - METROWATER

   Secretarial Note:

   A late request to speak in public forum was received from Ms P Bright. The Chairman sought feedback from the Committee as to whether Ms Bright should be permitted to speak and moved as follows:

   That Ms P Bright be permitted to speak in public forum.

   CARRIED

   Ms Bright addressed the committee regarding her involvement in issues related to Metrowater and the forthcoming select committee enquiry.

   That Ms P Bright be thanked for her presentation

   CARRIED

4. NOTICE OF MOTION - REVIEW OF METROWATER'S APRIL 2007 ASSET MANAGEMENT PLAN AND DRAFT STATEMENT OF INTENT

   Councillor Milne moved the following motion:

   1. That in terms of Standing Order 2.18.14, sections A and E of the following resolution of the Finance and Corporate Business Committee, adopted at its ordinary meeting held on Wednesday, 23 May 2007 be revoked:
      1. "That Metro Water Limited's (Metrowater) statement of intent (SOI) for the three year period commencing 1 July 2007 be approved subject to the company's agreement to work with officers in the preparation of next year's SOI and business plan to ensure:
         1. the strategic reporting framework contained in the draft SOI links the strategic goals to the supporting operational objectives.
         2. the performance indicators demonstrate the delivery of the objectives and that Metrowater's other reporting reflects this framework.
         3. the appropriate allocation of performance indicators between the business plan and the SOI.
      2. That Metrowater be commended on the preparation of its Asset Management Plan and that Metrowater be requested to:
         1. include a framework early in the Asset Management Plan that links the statement of intent, business plan and the council's Water and Sanitary Services Assessment requirements for service delivery to capital and operating expenditure plans.
         2. reconcile the strategic goals, business objectives and performance targets contained in the Asset Management Plan with those contained in the statement of intent and business plan.
      3. That it be noted that officers are considering carrying out a more comprehensive review of Metrowater's Asset Management Plan as part of a planned external review of Watercare Services Ltd's asset management planning processes, assumptions and outcomes later this year.
      4. That the chairman of the Finance and Corporate Business Committee be requested to write to the chairman of the board of Metrowater to advise of the above recommendations.
      5. That a specific report on Metrowater Statement of Intent be prepared for the Annual Plan Direction Setting meeting in November to include:
         • Return on public investment via a charitable payment mechanism from the 2008/2009 year onwards
         • Taxation issues
         • The synergy (present and future) between stormwater expenditure and Metrowater's (present and future) especially the case for Metrowater assuming more responsibility for stormwater
         • The effect of conservation (lower per capita consumption) on water prices
         • Metrowater's customer pricing model
         • Any other issues including legislative implications.
      6. That the Chair, Finance and Corporate Business Committee be authorised as the media spokesperson for this issue
      7. That resolution E. be released to the open minutes of this meeting."
   2. That Finance and Corporate Business Committee recommend to Combined Committees for recommendation to Council:
      1. that a budget of a lower charitable payment of $18 million for the 2008/2009 financial year be considered.
      2. that the $6 million shortfall for 2008/2009 be funded from an equal application of savings in operational expenditure, rescheduling capital works borrowing and rates increases after application of any surplus remaining at the end of the 2007 financial year.
   3. That the Finance and Corporate Business Committee, subject to the Combined Committees and Council approval, adopt the Metrowater statement of intent with the following amendments:
      1. the return on Public Investment percentage on page 9 of the draft Metrowater Statement of Intent (SOI), (attachment 1 to item C5 of the Finance and Corporate Business committee agenda 23 May 2007) be reduced to the following for 2008/2009:

   2007/2008	2008/2009	2009/2010
   3.3%	2.3%	3.2%

   2. a consequential amendment to projected charitable payment on page 10 of the Statement of Intent (SOI) (attachment 1 to item C5 of the Finance and Corporate Business committee agenda 23 May 2007)

   2007/2008	2008/2009	2009/2010
   18,000	18,000	26,218

   4. That a professional independent review of Metrowater is commissioned for the November 2007 Annual Plan Direction Setting meeting which would include the following strategic issues:
      1. The appropriateness of requiring a return of capital in the form of a charitable payment and its level.
      2. Taxation issues.
      3. The effect of increased conservation of water use on water prices.
      4. The cumulative effects of Watercare's wholesale price increase.
      5. The convergence of storm water infrastructure and water supply.
      6. Which elements, if any, of the storm water system should be the responsibility on Metrowater.
   5. That the Long-term council community plan (LTCCP) and the revenue and financing policy be amended as appropriate to reflect the above resolutions.

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

   For the Motion:	Against the Motion:
   Cr Doug Armstrong Cr Christine Caughey Cr Toni Millar Cr Scott Milne	Cr Neil Abel Cr Glenda Fryer Deputy Mayor, Cr Dr Bruce Hucker Cr Richard Northey His Worship the Mayor, Dick Hubbard Cr Vern Walsh

   Cr Richard Simpson was absent.

   The motion was declared LOST by 6 votes to 4.

   Secretarial Note:

   The meeting was adjourned at 9.34am and reconvened at 9.34am.

   There being no further business the Chairman declared the meeting closed at 10.03am.