MINUTES OF A MEETING OF THE FINANCE AND CORPORATE BUSINESS COMMITTEE HELD ON THURSDAY, 12 JULY 2007 AT 1:32PM

1. APOLOGIES

   That the apologies from Councillors Armstrong and Milne for lateness and Councillor Simpson for non-attendance be accepted.

   CARRIED

2. CONFIRMATION OF MINUTES

   1. That the minutes of the Annual Plan hearings meeting held on Tuesday, 4 June 2006, Wednesday, 5 June 2006, Thursday, 6 June 2006 and Friday, 7 June 2006 be confirmed as a true and correct record.
   2. That the minutes of the Annual Plan hearings meeting held on Tuesday, 5 June 2007, Wednesday, 6 June 2007 and Thursday, 7 June 2007 be confirmed as a true and correct record.
   3. That the minutes of the Finance and Corporate Business Committee meeting held on Wednesday, 23 May 2007 be confirmed as a true and correct record.
   4. That the minutes of the extraordinary Finance and Corporate Business Committee meeting held on Thursday, 21 June 2007 be confirmed as a true and correct record.

   CARRIED

3. EXTRAORDINARY BUSINESS

   There was no extraordinary business.

   The Chairman moved:

   That item C1, Auckland Art Gallery development project, be moved to the open section of the meeting for consideration as item 13 and that this item be considered at this point, noting that any sensitive information has been deleted from the report.

   CARRIED

4. PUBLIC FORUM

   4.1. MR KEVIN WRAGGE - METROWATER

   Mr Wragge tabled documentation and spoke to it.

   [ATTACHMENT 4.1, 4.1B, 4.1C, 4.1D]

   1. That Mr Kevin Wragge be thanked for his presentation.
   2. That the matters raised in Mr Wragge's submission be referred to Metro Water Limited for a response back to the Finance and Corporate Business committee and that a copy of the response be forwarded to Mr Wragge.

   CARRIED

   4.2. MR STEPHEN MOORE - METROWATER

   Mr Moore tabled a letter dated 9 July 2007 and spoke to it.

   [ATTACHMENT 4.2]

   That Mr Stephen Moore be thanked for his presentation.

   CARRIED

5. REPORTS REQUESTED

   That the report of the Democracy advisor dated 3 July 2007 be amended as follows:

   Row No.	Date Requested	Target Date	Report Name	Comments
   1	15/02/2007 - Item C7	July-07 Defer to Sept-07	Governance options for the Zoo	Confidential item - Officers report back on governance options for the Auckland Zoo including a preferred option. Officers are requesting that this item be deferred to allow further options to be investigated. Due to officers workloads and the need to consider the recent regional governance proposals, more time is needed to complete this work.
   2	25/05/05	July-07	Review of Development with Vision Board	Committee require the board be reviewed after 12 months of being in operation. The Board does not commence until Feb 2007, therefore report back to March FCBC meeting. Review is now underway and will be reported to the July Finance meeting. Refer to item C4 report entitled "Property Enterprise Board : Review of Board composition" on the 12 July Finance and Corporate Business Committee agenda.
   3	15/02/07 & 14/06/07 Council (item 7)	Jul-07 Defer to Aug-07	Long-term leases and licences on Parkright buildings that are affected by the signs bylaw	Officers report back with options for those billboard leases and licences subject to long-term arrangements on Parkright buildings that are affected by the outcome of the billboard signs bylaw. That the report incorporate and implement the unanimous decision of the 14 June 2007 Council meeting (item 7G.) as follows: G. That the council should not condone the on going use of free standing billboards on council owned land in those parts of the city where the bylaw excludes them, and the Council should take action as soon as contractually possible to expedite their removal.

   CARRIED

6. FINANCIAL REPORT FOR THE 11 MONTHS ENDED 31 MAY 2007

   That the financial report for the 11 months ended 31 May 2007, by the Operational Reporting Manager, dated 13 June 2007, be received noting:

   1. a favourable operating surplus variance of $6.7 million against forecast,
   2. a capital expenditure underspend of $26.4 million against forecast.

   CARRIED

7. LITTER ACT 1979 - RESOLUTION FOR INFRINGMENT OFFENCES AND FEES

   The Chairman moved:

   That it be a recommendation to Council:

   1. That 14 days public notice be given of Council's intention to adopt sections 13(1) and 13(2A) of the Litter Act 1979.
   2. That at the conclusion of the 14 days notice period, sections 13 and 14 of the Litter Act 1979 be adopted to apply in respect of litter infringement offences committed within the Auckland City Council boundaries, noting the requirement to specify the nature of the litter infringement notices and the infringement fees payable in respect of those offences as follows:

   Auckland City Council litter infringement offences and infringement fees

   Nature of infringement offence	Infringement fee
   Deposits litter or having deposited litter of less than 1 litre* leaves it in or on a public place or in or on private land without the consent of its occupier.	$100
   Deposits litter or having deposited litter of more than 1 litre and less than 20 litres* leaves it in or on a public place or in or on private land without the consent of its occupier.	$150
   Deposits litter or having deposited litter of more than 20 litres* and less than 120 litres** leaves it in or on a public place or in or on private land without the consent of its occupier.	$250
   Deposits litter or having deposited litter of more than 120 litres** leaves it in or on a public place or in or on private land without the consent of its occupier.	$400
   Deposits animal remains or having deposited animal remains leaves it in or on a public place or in or on private land without the consent of its occupier.	$400

   * 20 litres is the approximate maximum capacity of two standard supermarket bags in normal conditions.

   ** 120 litres is the approximate maximum capacity of a standard 'wheelie bin' in normal conditions.

   3. That the special order adopted by Auckland City Council on 26 September 2002 under the Litter Act 1979 be withdrawn once the 14 days public notice has been completed.

   Councillor Abel moved the following amendment:

   That the litter infringement fees all be set at $400.

   LOST

   The Chairman put the following substantive motion:

   That it be a recommendation to council:

   1. That 14 days public notice be given of Council's intention to adopt sections 13(1) and 13(2A) of the Litter Act 1979.
   2. That at the conclusion of the 14 days notice period, sections 13 and 14 of the Litter Act 1979 be adopted to apply in respect of litter infringement offences committed within the Auckland City Council boundaries, noting the requirement to specify the nature of the litter infringement notices and the infringement fees payable in respect of those offences as follows:

   Auckland City Council litter infringement offences and infringement fees

   Nature of infringement offence	Infringement fee
   Deposits litter or having deposited litter of less than 1 litre* leaves it in or on a public place or in or on private land without the consent of its occupier.	$100
   Deposits litter or having deposited litter of more than 1 litre and less than 20 litres* leaves it in or on a public place or in or on private land without the consent of its occupier.	$150
   Deposits litter or having deposited litter of more than 20 litres* and less than 120 litres** leaves it in or on a public place or in or on private land without the consent of its occupier.	$250
   Deposits litter or having deposited litter of more than 120 litres** leaves it in or on a public place or in or on private land without the consent of its occupier.	$400
   Deposits animal remains or having deposited animal remains leaves it in or on a public place or in or on private land without the consent of its occupier.	$400

   * 20 litres is the approximate maximum capacity of two standard supermarket bags in normal conditions.

   ** 120 litres is the approximate maximum capacity of a standard 'wheelie bin' in normal conditions.

   3. That the special order adopted by Auckland City Council on 26 September 2002 under the Litter Act 1979 be withdrawn once the 14 days public notice has been completed.

   CARRIED

8. APPROVAL OF WATERCARE'S STATEMENT OF CORPORATE INTENT FOR THE THREE YEAR PERIOD COMMENCING 1 JULY 2007

   1. That the Watercare Services Statement of Corporate Intent for the three-year period commencing 1 July 2007 be approved.
   2. That the chairman write to the Chairman of the Shareholders' Representative Group of Watercare Services Limited advising of the Finance and Corporate Business Committee's resolution endorsing Watercare's Statement of Intent for the three year period commencing 1 July 2007.
   3. That in future years specific numerical objectives be favourably considered for inclusion for number 1 - demand management initiatives and number 9 - policy initiatives and key submissions.

   CARRIED

9. AUCKLAND REGIONAL TRANSPORT NETWORK LIMITED (ARTNL) STATEMENT OF INTENT FOR THE THREE YEAR PERIOD COMMENCING 1 JULY 2007

   1. That the requirement that the Shareholders' Representative Group Auckland Regional Transport Network Limited (ARTNL) meet to approve the new Statement of Intent 2007-2010 be waived.
   2. That the Auckland Regional Transport Network Limited (ARTNL) Statement of Intent 2007-2010 be approved in accordance with clause 7.2 of the Shareholders' Agreement and article 2.4.1(a) of Auckland Regional Transport Network Limited's constitution.
   3. That the Chief Executive be authorised to sign the relevant shareholder's resolution approving the Auckland Regional Transport Network Limited (ARTNL) Statement of Intent 2007-2010.

   CARRIED

10. PROPOSAL FOR AUCKLAND CITY COUNCIL TO ISSUE BONDS

    1. That the report entitled 'Proposal for Auckland City Council to issue bonds' by Councillor Richard Northey, dated 4 July 2007 be received.
    2. That the Finance and Corporate Business Committee support in principle the proposal for Auckland City Council to issue bonds and that officers be requested to report back to the Finance & Corporate Business Committee on the benefits that might be gained and costs incurred if Auckland City Council were to undertake a bond issue.
    3. That Council write to the Minister of Finance supporting the speedy enactment of the proposed law change that will enable council's to issue bonds without the need to register a prospectus but supported by an investment statement signed by two councillors on behalf of council.

    CARRIED

11. AIRPORT SHARES - RESOLUTION FROM EDEN/ ALBERT COMMUNITY BOARD

    1. That the resolutions of the Eden/Albert Community Board meeting held on Wednesday, 27 June 2007 be received as follows:
       1. That the board advocates to the Urban Strategy and Governance Committee, the Finance and Corporate Business committee and the Economic and Sustainable Development Committee, that Council's airport share preferably not be sold.
       2. That the Board advocates that in the instance of consideration that Council's shares are sold, then Council investigate the means by which the proceeds are retained and re-invested, and not spent, for the benefit of Auckland citizens, both now and in the future.
    2. That officers be requested to advise the Eden/Albert Community Board of the proposed consultation on the process and criteria should Council wish to consider options regarding Auckland City Council's shares in Auckland International Airport Limited and that the Eden/Albert Community Board be invited to make a submission, noting that public consultation commences on 15 July 2007.

    CARRIED

12. 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:

    This resolution is made in reliance on Section 48(1)(a) of the Local Government Official Information and Meetings Act 1987 and the particular interest or interests protected by section 6 or section 7 of that Act which would be prejudiced by the holding of the whole or relevant part of the proceedings of the meeting in public 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	Auckland Art Gallery Development Update	Public conduct of the matter would be likely to result in disclosure of the information for which good reason to exists under section 7.	To enable the Council to carry out, without prejudice or disadvantage, commercial activities. [Section 7(2)(h)] In particular, the report contains commercially sensitive project cost information. This includes project funding and operational information and to release this information to the public would compromise the Art Gallery's commercial operations. 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. [Section 7(2)(c)(i)] To enable the Council to carry on, without prejudice or disadvantage, negotiations (including commercial and industrial negotiations). [Section 7(2)(i)] In particular, the report notes that contractors have been invited to submit an Expression of Interest as part of the approved procurement process for the selection and appointment of the main building contract. In the interest of maintaining a fair and competitive tender process, it is imperative that the project cost information in this report remains confidential.	Section 48(1)(a) The public conduct of the part of the meeting would be likely to result in the disclosure of information for which good reason for withholding exists under section 7.
    C2	Property Enterprise Board: Review of Board Composition	Public conduct of the matter would be likely to result in disclosure of the information for which good reason to exists under section 7.	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. [Section 7(2)(c)(i)] In particular, the report contains references to the board's performance , that if released to the public, could have a negative impact on the board.	Section 48(1)(a) The public conduct of the part of the meeting would be likely to result in the disclosure of information for which good reason for withholding exists under section 7.
    C3	Review of Watercare's Performance for the Third Quarter	Public conduct of the matter would be likely to result in disclosure of the information for which good reason to exists under section 7.	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. [Section 7(2)(b)(ii)] In particular, the report contains capital and operating expenditure information relating to suppliers, contractors and other third parties, which if released to the public, would prejudice and disadvantage Watercare Services Limited's commercial position.	Section 48(1)(a) The public conduct of the part of the meeting would be likely to result in the disclosure of information for which good reason for withholding exists under section 7.
    C4	Delegated Decisions and/ or recommendations from the Property Enterprise Board	Good reason to withhold exists under section 7	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. [Section 7(2)(b)(ii)] To enable the Council to carry out, without prejudice or disadvantage, commercial activities. [Section 7(2)(h)] In particular, the report contains references to the property's value and information that may impact on the property owner's commercial activities; identification of the site and contract terms which form the basis of negotiations between council and the landowner; sensitive information about council's proposed intentions for the site, which could prejudice or disadvantage its commercial activities.	Section 48(1)(a) The public conduct of the part of the meeting would be likely to result in the disclosure of information for which good reason for withholding exists under section 7.
    C5	Delegated Decisions - Property group manager	Good reason to withhold exists under section 7	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. [Section 7(2)(b)(ii)] In particular, the detailed financial information contained in the report regarding leases, rent reviews and property transactions, if released to the public, would prejudice the commercial position of council or the other parties involved. To enable the Council to carry out, without prejudice or disadvantage, commercial activities. [Section 7(2)(h)] In particular, the detailed financial information contained in the report regarding leases, rent reviews and property transactions, if released to the public-, would place council at a disadvantage in carrying out its commercial activities.	Section 48(1)(a) The public conduct of the part of the meeting would be likely to result in the disclosure of information for which good reason for withholding exists under section 7.

    CARRIED

13. AUCKLAND ART GALLERY DEVELOPMENT PROJECT

    Secretarial Note:

    This item was item C1 of the confidential section of the meeting and was moved to the open section for consideration with the sensitive information removed.

    That it be a recommendation to council:

    1. That Council confirms its support for the Art Gallery development project at a revised estimated project cost of $96.4 million (against a $88.4 million approved budget), representing an increased cost to council of $8 million and bringing council's total contribution to $33.0 million (currently $25 million).
    2. That Council delegates to the Chief Executive and the Mayor the authority to approve the construction tender for the main building works, subject to the following conditions:
       1. resource consent is confirmed (i.e. successful Environment Court decision);
       2. applicable building consents have been issued;
       3. the construction tender amount is within the total project estimated cost;
       4. the funding profile outlined in 3.4.2. of the report entitled "Auckland Art Gallery development project" by the Project manager, dated 28 June 2007 is confirmed by council;
       5. confirmed central government contribution;
       6. appropriate peer reviews support the recommendations of the procurement supplier report.
    3. That the details of the approved construction tender be reported to the first available council meeting.

    CARRIED

14. PROPERTY ENTERPRISE BOARD: REVIEW OF BOARD COMPOSITION

    Secretarial Note:

    This item was item C2 in the confidential section of the meeting.

    1. That the report from The Boardroom Practice Limited on the board composition of the Property Enterprise Board, dated June 2007, be received.
    2. That the policy of not appointing current councillors or employees of Auckland City Council to the board of the Property Enterprise Board continue.
    3. That the Property Enterprise Board be requested to continue working on processes and protocols for dealing with conflicts of interest and processes regarding retiring board members, using information from The Boardroom Practice Limited's review undertaken in June 2007.
    4. That it be noted that officers will examine the appropriateness of increasing the board membership, as recommended in The Boardroom Practice Limited's review undertaken in June 2007, when the board's first reappointment process is carried out in late 2008, however it is the Finance and Corporate Business Committee's view that current membership numbers are appropriate.
    5. That resolutions A to D be moved into the open section of the minutes.

    CARRIED

    There being no further business the Chairman declared the meeting closed at 3:45 pm.