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MINUTES OF A MEETING OF THE AUCKLAND CITY COUNCIL

HELD ON WEDNESDAY, 5 MARCH 2008 AT 4:04PM

PRESENT: His Worship the Mayor Hon John Banks, QSO  
  Deputy Mayor David Hay, JP  
  Councillors: Douglas Armstrong, QSO  
    Ken Baguley  
    Aaron Bhatnagar  
    Leila Boyle  
    Dr Cathy Casey  
    Bill Christian, JP  
    Mark Donnelly  
    Graeme Easte  
    Glenda Fryer  
    Paul Goldsmith  
    Peseta Sam Lotu-Iiga  
    Toni Millar, JP  
    Greg Moyle, E.D.  
    Graeme Mulholland, JP  
    Richard Northey, ONZM  
    Noelene Raffills  
    Denise Roche  

The meeting was adjourned at 4:05pm and reconvened at 4:15pm.

  1. Top APOLOGIES

    There were no apologies.

  2. Top EXTRAORDINARY BUSINESS

    There was no extraordinary business.

  3. Top COMBINED COMMITTEES REPORT NO. 01/2008

    Councillor Armstrong moved:

    Councillor Christian seconded:

    That the recommendations contained in the report of the Combined Committees no. 1/2008 be adopted, ie:

    3. Strategic Overview

    3.1 The Chief Executive's Overview of Direction Setting for the 2008/2009 Annual Plan

    1. That it be noted that the Long-Term Council Community Plan 2006-2016 sets Auckland City Council's strategic direction until 2016, including significant investment in identified projects and service improvement initiatives aimed at meeting the challenge of growth and accelerating progress towards achievement of the long-term vision.

    2. That it be noted that the Annual Plan 2008/2009 contains the proposed annual budget and funding statements for year three of the 2006-2016 Long-term Council Community Plan as amended by the deferral of various new projects and initiatives to produce a draft rates increase equal to or less than Auckland City Council's rate of inflation, which preserves almost all current service levels, incremental improvements and a significant capital project of $405 million.

    3. That it be noted that the Annual Plan 2008/2009 provides the opportunity for Auckland City Council to decide whether or not the planned programme of work is taking the city in the right direction and what the priority projects should be.

    4. That the content of the Chief Executive's Overview of Direction Setting for the 2008/2009 Annual Plan report be noted, in particular the range of issues that need to be considered in the development of the Annual Plan 2008/2009, including:

      1. the need to maximise the return on all of Auckland City Council's sources of income;

      2. the need to ensure the council continues to invest appropriately in caring for the community's assets and investing in further "soft" and hard infrastructure;

      3. the need to balance ongoing improvement in service levels with the impact on rates;

      4. ensuring acceptable levels of increase in water prices;

      5. challenges the organisation faces and effectiveness and efficiency measures that have been introduced to help respond to these challenges.

    3.2 Strategic Milestones Review for the Annual Plan 2008/2009

    1. That it be noted that the strategic milestones will be updated in line with the decisions made at the 5 March 2008 Combined Committees meeting, noting:

    Under the Arts, Community and Recreation heading

    1c - new management and conservation plan for Maungawhau -Mt Eden - change "under review" to "ongoing"

    1f - add "Mt Wellington" after the word "Maungarei"

    1. That it be noted that the milestones which are described as 'ongoing' or are due for completion in the 2008/2009 financial year will be published in the Annual Plan 2008/2009.

    4. 2008/2009 Budget and Policies

    4.1 2008/2009 Development Contributions Policy: Draft for Consultation

    1. That the proposed draft development contributions policy (covering community amenities, public space land acquisition, public space infrastructure, stormwater and transport), be included in the draft Long-term Council Community Plan 2006-2016, to allow public submissions on this draft policy, in accordance with the special consultative procedure, and to allow adoption of the new policy (with any changes arising from that process) for it to be in place for 1 July 2008.

    2. That authority be delegated to the Chair, Combined Committees and the General Manager City Development to make any minor amendments to the draft policy arising from this meeting (including consequential amendments needed because of other decisions) or arising out of further review of the draft policy by Auckland City Council's legal advisers.

    3. That officers be requested to investigate opportunities for further enhancing the development contributions policy, including its extension to the Hauraki Gulf Islands.

    4. That officers be requested to investigate the use of financial contributions to fund heritage initiatives.

    4.2. Metrowater and Water Prices

    1. That Auckland City Council's policy objective for water prices is to balance the key concern of affordability with the need to retain a programme of prudent, and as evenly paced as possible, price increases.

    2. That it be noted that as a result of the proposal by Auckland City Council for Watercare Services Limited's borrowing to be guaranteed, future Metrowater price increases are considerably lower than previously forecast.

    3. That Metrowater be requested to cap water price increases in line with Auckland City Council's rate of inflation for the next three years, which will give water users certainty over future water price increases and will have the effect of reducing charitable payments.

    4. That the return on public investment Auckland City Council requires of Metrowater be adjusted to permit water price increases in line with Auckland City Council's rate of inflation.

    5. That it be noted that using increased borrowing to partially replace Metrowater's charitable payments as a means of funding the stormwater network capital expenditure programme, is consistent with the Auckland City Council's debt policy.

    6. That borrowing be used, as a means of replacing revenue that would otherwise be obtained from Metrowater's charitable payments, in order to fund Auckland City Council's stormwater network capital expenditure programme.

    7. That the options to continue ensuring water users from non-rateable properties contribute to a return on public investment in Metrowater in the event of a cancellation of the charitable payments programme, and the difficulties associated with implementing those options, be noted.

    8. That it be noted that the Royal Commission into Regional Governance in Auckland may well make recommendations that have profound impact on the water industry.

    9. That Auckland City Council's water policy be revisited either after three years or once the recommendations of the Royal Commission into Regional Governance, the subsequent implementation plan and any resulting legislation are signalled.

    10. That as part of the draft Annual Plan 2008/2009 Auckland City Council consult the public on the various options for water prices, charitable payments and the rates implications, including the option of holding water prices within the rate of inflation and the consequential decrease in charitable payments.

    11. That Auckland City Council declares its intention to eliminate charitable payments over time subject to consultation with the public.

    4.3. Proposed Rates Policies for 2008/2009

    1. That a rates increase for 2008/2009 of 5.1 per cent be approved, which is equal to Auckland City Council's forecasted rate of inflation, to fund the draft budget for 2008/2009, and is half of the 10.2 per cent rates increase projected in the Long-term Council Community Plan 2006-2016.
    2. That the five value-based targeted rates for transport, open spaces and volcanic cones, heritage and urban design, community development and housing, and city development be discontinued, and that this funding be consolidated within the value-based general rate.
    3. That the rates increase be applied as a uniform annual general charge (UAGC) which would increase the present UAGC from $95 to $154, so all non-CBD residential properties would have a $82 increase (including the proposed $23 increase in the refuse collection targeted rate).
    4. That ratepayers be consulted on higher rates increases to fund deferred capital projects.
    5. That the refuse collection targeted rate continue to be applied as a uniform rate per service to fully fund the refuse services, and that the refuse collection targeted rate will increase from $199 to $222 per service for 2008/2009 to cover the higher costs for the new recycling service and the other existing services.
    6. That it be noted that the phasing out of Metrowater charitable payments will not impact rates for 2008/2009, but would require higher rates increases in subsequent years to fund the stormwater expenditure that was funded by charitable payments.
    7. That it be noted that rating policy decisions will be included in the Draft Annual Plan 2008/2009 for consultation.
    8. That it be noted that the final figures for resolutions A, C, and E may be amended if they are altered by final decisions made in Item 4.7 of the 5 March 2008 Combined Committees meeting.

    9. That the resolutions from the Annual Plan Direction Setting meeting held 12 December 2007 be adopted as follows:

      1. That the next step of the long-term general rate differential strategy, which transfers around $2.6 million from non-residential groups to the residential group be approved for 2008/2009.
      2. That the CBD targeted rate for the CBD non-residential group be increased in line with the reduction in the general rate by applying the next step of the general rate differential strategy (this will increase the targeted rate by around $2.3 million dollars to $10.7 million for 2008/2009).
      3. That the CBD targeted rate for residential units in the CBD be increased from $52 to $55 for 2008/2009.
      4. That it be noted that increasing the uniform annual general charge (UAGC) is consistent with Council policies, and that the upper limit of the UAGC is $580 per separately used or inhabited part of a property.
      5. That it be noted that increasing the uniform annual general charge will transfer rates from high-value properties to low-value properties.
      6. That the discount for full payment of rates by the first instalment date be increased from 2.83% to 3.2% for 2008/2009.
      7. That it be noted that at this stage, there are no proposed changes to the Council's assistance schemes.
      8. That officers investigate and report on the introduction of an appropriate rate or charge on visitor accommodation.

    4.4. Auckland City Heritage Policy Review - Incentives

    1. That the range of options available to enhance the existing heritage grants scheme be noted, but due to current budget constraints, there will be no action taken at this stage.

    2. That it be noted that officers will be investigating the use of financial contributions to fund built, and environmental heritage initiatives.

    3. That officers be requested to review the equity and effectiveness of the current heritage policy and processes for a report to the City Development Committee.

    4.5. Auckland City Environments Fees and Charges

    1. That the proposed increases to Auckland City Environments fees be approved as attached to the Manager business development, Auckland City Environments' report entitled "ACE fees and charges" dated 7 February 2008 [attached as 4.5A], but that the Chief Executive be requested to continuously improve the quality of service and minimize compliance costs for the customer:

    2. That the City Development Committee be requested to review the terms and conditions of public space use licences including obligations to maintain the quality of public space.

    4.6. Mainstreet Draft Budgets 2008/2009

    1. That the following Auckland City Council Mainstreet budgets be included in the 2008/2009 Annual Plan and Budget:
    Mainstreet Programme 2008/09 Budgets (excl GST)
    Avondale $96,000
    Blockhouse Bay $40,263
    Eden Valley $87,500
    Ellerslie $81,950
    Glen Innes $142,044
    Heart of the City $3,114,384
    Karangahape Road $250,981
    Mt Eden $68,035
    Newmarket $940,000
    Onehunga $349,920
    Otahuhu $363,000
    Panmure $332,750
    Parnell $268,015
    Ponsonby $200,000
    Remuera $214,170
    Rosebank $180,000
    St Heliers $119,900
    Total $6,848,912
    1. That the boundaries of all Auckland City Council's Mainstreet programmes remain the same as those for the 2007/2008 financial year.

    4.7. Update on Draft Budgets for 2008/2009

    1. That the resolutions from the February 2008 standing committees regarding capital deferrals be approved as follows:

    Row Project description Recommendation at 12 December APDS Resolution from 5 March 2008 Combined Committee
      Arts, Culture and Recreation Committee
    1 Peter Blake Memorial Defer one year Project not deferred
    2 254 Ponsonby Road Upgrade Defer three years Defer three years
    3 Auckland Museum surrounds and cenotaph upgrade Defer three years Not deferred
    4 Sylvia Park surrounds Defer three years Defer three years
    5 Glen Innes Town Centre upgrade (stage two) Defer three years Defer three years
    6 Volcanic landscape programme $1m in each of 2008/2009 and 2009/2010, rest defer one year $1m in each of 2008/2009 and 2009/2010, rest defer one year
    7 Tamaki Streetscape upgrade Defer three years Defer three years
    8 Mt Wellington quarry open space provision Defer three years Defer one year
    9 Lunn Avenue project Defer three years Defer one year
    10 Open spaces land acquisition Defer one year Defer one year
    11 Land purchases to improve harbours access Delete Defer to two years (from 2009/2010 to 2011/2012)
    12 Harbour walkways: Blockhouse Bay to Onehunga Delete Defer two years
    13 Waikaraka Park extension Delete Project is not deleted
    14 Glen Innes music and arts centre Delete Defer one year
    15 Pt Erin pool redevelopment Defer three years Defer two years
    16 Jordan Recreation Centre redevelopment Defer one year Defer one year
    17 Avondale community pool Delete Project is not deleted
    18 Auckland Domain sandcarpet installation Defer one year Defer one year
    19 Paved area renewals - citywide Defer one year Defer one year, except $500,000
    20 Auckland Zoo - Te Wao Nui Defer one year Defer one year
    21 Lorne Street stage 2 (Library and Canopy) Defer three years Defer three years
    22 Pah Homestead restoration Defer three years Defer three years, except $1.5 million
    23 Monte Cecilia Park development Delete Defer three years
    24 Town Hall Arts Precinct No recommendation Defer three years
    25 Rugby World Cup 2011 No recommendation $22 million Eden Park precinct support package and a $10 million programme of broader tournament related projects
      Community Services Committee
    26 Otahuhu library redevelopment Defer for 3 years Defer for 3 years
    27 Improving community facilities Reduce budget to $1.5m in 2008/2009, delete other years Reduce budget to $1.5m in 2008/2009, delete other years
    28 Blockhouse Bay library redevelopment Defer one year Defer one year
    29 Waiheke library redevelopment Defer one year Defer one year
    30 Mt Roskill library redevelopment Defer one year Defer one year
      Annual Plan Direction Setting Committee
    31 Q-theatre Defer three years $4.6 million in 2008/2009 and 2009/2010
      City Development Committee
    32 Wynyard Point marine events centre Defer one year Design and consenting in 2007/2008 and 2008/2009
    33 Defer construction by one year
    34 Wynyard Point TEAL Park infrastructure Defer three years Design and consenting within three years.
    35 Defer construction by three years (unless development contributions funding is realised sooner)
    36 Harbour Bridge Park infrastructure Defer three years Defer by three years (unless development contributions funding is realised sooner)
    37 Wynyard Point infrastructure development Defer three years Defer by three years
    38 Wynyard Point - Harbour Bridge park Defer by three years $800,000 for design and consenting in 2008/2009 (including Harbour Bridge Park), rest defer to 2010/2011 and 2011/2012.
    39 In same meeting: Defer three years (unless development contributions funding is realised sooner)
    40 Wynyard Point pedestrian overbridges Defer one year Defer one year
    41 Fanshawe St upgrade for Wynyard Point Defer one year Defer two years
    42 Regulatory programme No recommendation Additional $967,000 in 2008/2009 for extended timeframes and $300,000 in 2008/2009 for enhanced customer access to property file information
    43 Public space land acquisition for Wynyard Point Defer one year Defer one year (subject to timing and outcome of District Plan change process)
    44 International facilities Delete $20 million for 2011/2012, 2012/2013 and 2013/2014
    45 Stormwater water quality improvements Delete Delete - revise stormwater capital works programme to ensure Metrowater continues with its accelerated Cleaner Harbours programme and other high priority projects proceed.
      Transport Committee
    46 Bledisloe demountable parking building Delete Delete
    47 New wharves - Motuihe, Browns & Motutapu Defer three years Defer one year
    48 Liveable streets $1.5 million in 2008/2009, rest delete $1.5 million in 2008/2009, rest delete
    49 Footpaths upgrade Defer 50% of budget by one year Defer 50% of budget by one year
    50 School transport safety initiatives $300,000 in 2008/2009, rest defer by one year $300,000 in 2008/2009, rest defer by one year
    51 AMETI- land $33.75 million in 2008/2009, rest defer by one year $33.75 million in 2008/2009, rest defer by one year
    52 AMETI - construction Defer one year Defer one year
    53 Cycleway and walkway improvements Defer $3 million of budget by three years Defer $3 million of budget by three years
    54 Tiverton and Wolverton improvements Defer three years Defer three years
    55 Civic bus station improvements Delete Delete
    56 Neilson Street improvements Defer one year Defer one year
    57 Unscheduled land acquisition Defer 50% of budget by one year Defer 50% of budget by one year
    58 Road and intersection Improvements Defer 33% of budget by one year and defer 33% by 3 years Retain 2008/2009 budget and defer 33% of budget by one year and defer 33% by 3 years
    59 Rapid transport land purchases Defer 50% of budget by one year Defer 50% of budget by one year
    60 Fanshawe Street Defer one year Defer one year
      Finance and Strategy Committee
    61 Development with Vision land acquisition $95 million in 2009/2010, rest defer 3 years. $95 million in 2009/2010 (waterfront $70 million, Avondale and Tamaki Edge growth areas $25 million)
    62 $21 million in 2010/2011 (Otahuhu - other growth area land purchases)
    63 Rest defer to outer years including waterfront assets in 2011/2012.
    64 Active Edge Defer 3 years Aotea Square upgrade - no changes
    65 Active Edge - reduce by $7.9 million over 2009/2010 and 2010/2011.
    66 Civic carpark roof replacement - reduce by $6.5 million over three years (dependent on method of construction)

    1. That $1 million for new initiatives and $200,000 for enhancing Council's enforcement capability in the current zero tolerance to graffiti programme, to enable resources to be deployed to target the eight worst graffiti vandals operating within Auckland City be approved on an ongoing basis from 2008/2009.

    2. That a draft operating budget for 2008/2009 based on an overall rate increase of 5.1 per cent be approved.

    3. That the Fanshawe Street project be deferred by one year, as per the resolution from the February 2008 meeting of the Transport Committee.

    4. That it be noted:

      1. That officers will prepare the draft Annual Plan 2008/2009 and amendments to Auckland City Council's 2006‑2016 Long-term Council Community Plan document for adoption at the 27 March 2008 Council meeting, based on the outcomes from this meeting and the 12 December 2007 and 12 February 2008 Annual Plan Direction Setting meetings;

      2. That expenditure and revenues affecting outer year rate increases will be comprehensively reviewed as part of the 2009-2019 Long-term Council Community Plan process;

      3. That the capital expenditure programme for Wynyard Point - Harbour Bridge Park project is $800,000 for design and consenting in 2008/2009, with the remaining budget to be deferred to 2010/2011 and 2011/2012;

      4. That the three‑year Central Business District (CBD) new initiatives and capex programmes are funded from the CBD targeted rate.

    4.8. Urgent Decision of the Zoo Board - Zoo Admission Prices and Zoo Board Delegations
    1. That the decision on the proposed $50,000 in savings from Council funding for the Zoo be deferred, pending a broader review by the Zoo Board of admissions prices and service levels at the Zoo.

    2. That the review by the Zoo Board of admissions prices and service levels at the Zoo be conducted in the context of assessing inflation-related increases in costs to the Zoo's operations, and recognising the significant efficiency improvements and revenue generation achieved at the Zoo in recent years.

    Councillor Northey moved the following amendment:

    Councillor Fryer seconded:

    That all the amendments lost at Combined Committees be moved in the council meeting in total as follows:

    3. Strategic Overview

    3.2. Strategic Milestones Review for the Annual Plan 2008/2009

    Amendment **adding a new C and D**:

    1. That all milestones listed as "under review" under Arts Community & Recreation section be restored to read "ongoing":

      1. 5 (pg 12), 24d (pg 15), 24h (pg 15) - Migrant Settlers and refugees

      2. 24e (pg 15) - engagement with youth

      3. 33 (pg 16) - homelessness action plan

      4. 19a (pg 14) - employment initiatives - mayor's taskforce for jobs

      5. 24g (pg 15) - charter for older people

      6. 27 (pg 16) - pursue housing partnerships

      7. 28b (pg 16) - affordable housing demonstration project

    2. That developing a heritage collection for Auckland City Libraries which is 9b be restored as a milestone.

    Amendment **adding a new E**:

    1. That council seek a resource consent for the visitors centre at Maungawhau, Mt Eden and that the milestone be changed to 2009/2010.

    4. 2008/2009 Budget and Policies

    4.2. Metrowater And Water Prices

    Amendments to A, C, E and J:

    1. That Auckland City Council's policy objectives for water prices are to balance the key concerns of affordability and of phasing out the subsidising by water users of other council activities with the need to retain a programme of prudent, and as evenly paced as possible, price increases.

    1. That Metrowater be requested to cap water prices at the current level until the charitable payments to council are phased out, which will give water users certainty over the future water price and will have the effect of eliminating charitable payments.

    1. That it be noted that using increased borrowing to replace Metrowater's charitable payments as a means of funding the stormwater network capital expenditure programme, is consistent with the Auckland City Council's debt policy.

    1. That as part of the draft Annual Plan 2008/2009 Auckland City Council consult the public on the various options for water prices, charitable payments and the rates implications, including the option of holding water prices and the consequential phasing out of charitable payments.

    Amendment to replace D.

    1. That Auckland City Council requires Metrowater to provide water and wastewater services at minimum cost, through a financially and environmentally sustainable service and that Metrowater not be a source of revenue to subsidise other council activities.

    4.3. Proposed Rates Policies for 2008/2009

    Amendment to C:

    1. That the rates increase be applied as an increase in the value based rate while eliminating the present uniform annual general charge (UAGC).

    Amendment to D and adding I:

    1. That ratepayers be consulted on higher rates increases to fund deferred capital projects and what would otherwise be reduced operational expenditure.
    1. That the CBD residential targeted rate be changed from a uniform annual charge to a value based rate set at a level that will achieve the same income for council.

    Amendment to E:

    1. That it be noted that officers recommend continuing to apply the refuse collection targeted rate as a uniform rate per service to fully fund the refuse services, but that the refuse collection targeted rate be abolished for 2008/2009 and officers be asked to report on a replacement charge from 2009/2010 on a "refuse generator" basis directly related to the amount of rubbish generated by the property concerned.

    4.4. Auckland City Heritage Policy Review - Incentives

    Amendment to A:

    1. That the range of options available to enhance the existing heritage grants scheme be noted, but due to current budget constraints, option 5 as outlined in the Group manager City Planning's report entitled "Auckland City Heritage Policy Review - Incentives", dated 22 January 2008, which includes $350,000 increase be adopted.

    Amendment to A and a new D:

    1. That the range of options available to enhance the existing heritage grants scheme be noted, but due to current budget constraints there be no increase to the current Heritage grants scheme.
    1. That Council consult ratepayers on the option of increasing the Heritage Grant scheme to $1 million per annum, noting that this is approx $7 per ratepayer, for the 2008/09 year.

    4.7. Update on Draft Budgets for 2008/2009

    Amendments to A, B and adding a new C:

    1. That the resolutions from the February 2008 standing committees regarding capital deferrals be approved as follows:

    Row Project description Recommendation at 12 December APDS Recommendation from Standing Committee Councillor amendment

    Name/ amendment
      Arts, Culture and Recreation Committee
    1 Peter Blake Memorial Defer one year Project not deferred Delete
    4 Sylvia Park surrounds Defer three years Defer three years Defer one year
    5 Glen Innes Town Centre upgrade (stage two) Defer three years Defer three years Not defer
    6 Volcanic landscape programme $1m in each of 2008/2009 and 2009/2010, rest defer one year $1m in each of 2008/2009 and 2009/2010, rest defer one year Not defer
    12 Harbour walkways: Blockhouse Bay to Onehunga Delete Defer two years Defer one year
    19 Paved area renewals - citywide Defer one year Defer one year, except $500,000 Not defer
    21 Lorne Street stage 2 (Library and Canopy) Defer three years Defer three years Defer one year
    22 Pah Homestead restoration Defer three years Defer three years, except $1.5 million Not defer
    23 Monte Cecilia Park development Delete Defer three years Not defer
    24 Town Hall Arts Precinct No recommendation Defer three years Defer one year
    25 Rugby World Cup 2011 No recommendation $22 million Eden Park precinct support package and a $10 million programme of broader tournament related projects $4 million Eden Park precinct package and $10 million programme for broader tournament related projects.
    26 Otahuhu library redevelopment Defer for 3 years Defer for 3 years Not defer
      Community Services Committee
    27 Improving community facilities Reduce budget to $1.5m in 2008/2009, delete other years Reduce budget to $1.5m in 2008/2009, delete other years Not reduced or deleted
    28 Blockhouse Bay library redevelopment Defer one year Defer one year Not defer
    30 Mt Roskill library redevelopment Defer one year Defer one year Not defer
      Annual Plan Direction Setting Committee
    31 Q-theatre Defer three years $4.6 million in 2008/2009 and 2009/2010 $4.6 million in 2008/2009 and 2009/2010, of which $700,000 advanced in 2007/2008
      City Development Committee
    41 Fanshawe St upgrade for Wynyard Point Defer one year Defer one year Defer for two years
    44 International facilities Delete $20 million for 2011/2012, 2012/2013 and 2013/2014 Delete
      Transport Committee
    48 Liveable streets $1.5 million in 2008/2009, rest delete $1.5 million in 2008/2009, rest delete $1.5 million in 2008/2009, not delete the rest
    49 Footpaths upgrade Defer 50% of budget by one year Defer 50% of budget by one year Not defer
    50 School transport safety initiatives $300,000 in 2008/2009, rest defer by one year $300,000 in 2008/2009, rest defer by one year Not defer
    53 Cycleway and walkway improvements Defer $3 million of budget by three years Defer $3 million of budget by three years Not defer
    54 Tiverton and Wolverton improvements Defer three years Defer three years Not defer
    59 Rapid transport land purchases Defer 50% of budget by one year Defer 50% of budget by one year Not defer
    60 Fanshawe Street Defer one year Defer one year Defer two years
      Finance and Strategy Committee
    65 Active Edge Defer 3 years Active Edge - reduce by $7.9 million over 2009/2010 and 2010/2011. Reduce by $10.1 million in 2009/2010 and 2010/2011.
               

    1. That the $100,000 in operational spending proposed for a convention centre be spent instead on educational and enforcement activities to reduce litter and waste dumping in town centres.

    2. That the following increased service levels and new activities that were included in the Long-term council community plan 2006-2016 that were cut by the 12 December extraordinary Finance and Strategy

    12 Dec Finance & Strategy line resolution reference Topic Amount
    A(iii) 6 Secure asset management of heritage $200,000
    A(iii) 7 Economic growth niche industries $50,000
    A(iii) 8 Economic growth - availability of right skills sets $25,000
    A(iii) 12 Economic growth - broadband - wifi and fibre ducting $250,000
    A(iii) 13 Ongoing maintenance for Galway recycling facility $50,000
    C(ii) 1 Restore making communities more relevant $194,000
    C(ii) 2 Continue with cadetships $174,000
    C(ii) 3 Diversity and other community projects $449,000
    C(ii) 5 Fill the climate change position $100,000
    C(ii) 6 Maintain the corporate sustainability initiative $50,000
    C(ii) 8 Continue to promote the Long-term council community plan 2006-2016 for public consultation $200,000
    C(ii) 10 Continue with kitchen and garden waste collection programme $430,000

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

    For the Amendment: Against the Amendment:
    Cr Leila Boyle

    Cr Dr Cathy Casey

    Cr Graeme Easte

    Cr Glenda Fryer

    Cr Richard Northey

    Cr Denise Roche

    		 Cr Doug Armstrong

    Cr Ken Baguley

    Cr Aaron Bhatnagar

    Cr Bill Christian

    Cr Mark Donnelly

    Cr Paul Goldsmith

    Deputy Mayor David Hay

    Cr Peseta Sam Lotu-Iiga

    Cr Toni Millar

    Cr Greg Moyle

    Cr Graeme Mulholland

    Cr Noelene Raffills

    His Worship the Mayor

    The amendment was declared LOST by 13 votes to 6.

    Councillor Casey moved the following amendment:

    Councillor Roche seconded:

    That the new funding provided for graffiti be reallocated to the social programmes that were cut.

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

    For the Amendment: Against the Amendment:
    Cr Dr Cathy Casey

    Cr Graeme Easte

    Cr Glenda Fryer

    Cr Denise Roche

    		 Cr Doug Armstrong

    Cr Ken Baguley

    Cr Aaron Bhatnagar

    Cr Leila Boyle

    Cr Bill Christian

    Cr Mark Donnelly

    Cr Paul Goldsmith

    Deputy Mayor David Hay

    Cr Peseta Sam Lotu-Iiga

    Cr Toni Millar

    Cr Greg Moyle

    Cr Graeme Mulholland

    Cr Richard Northey

    Cr Noelene Raffills

    His Worship the Mayor

    The amendment was declared LOST by 15 votes to 4.

    His Worship the mayor put the following substantive motion:

    Councillor Armstrong moved:

    Councillor Christian seconded:

    That the recommendations contained in the report of the Combined Committees no. 1/2008 be adopted, ie:

    3. Strategic Overview

    3.1 The Chief Executive's Overview of Direction Setting for the 2008/2009 Annual Plan

    1. That it be noted that the Long-Term Council Community Plan 2006-2016 sets Auckland City Council's strategic direction until 2016, including significant investment in identified projects and service improvement initiatives aimed at meeting the challenge of growth and accelerating progress towards achievement of the long-term vision.

    2. That it be noted that the Annual Plan 2008/2009 contains the proposed annual budget and funding statements for year three of the 2006-2016 Long-term Council Community Plan as amended by the deferral of various new projects and initiatives to produce a draft rates increase equal to or less than Auckland City Council's rate of inflation, which preserves almost all current service levels, incremental improvements and a significant capital project of $405 million.

    3. That it be noted that the Annual Plan 2008/2009 provides the opportunity for Auckland City Council to decide whether or not the planned programme of work is taking the city in the right direction and what the priority projects should be.

    4. That the content of the Chief Executive's Overview of Direction Setting for the 2008/2009 Annual Plan report be noted, in particular the range of issues that need to be considered in the development of the Annual Plan 2008/2009, including:

      1. the need to maximise the return on all of Auckland City Council's sources of income;

      2. the need to ensure the council continues to invest appropriately in caring for the community's assets and investing in further "soft" and hard infrastructure;

      3. the need to balance ongoing improvement in service levels with the impact on rates;

      4. ensuring acceptable levels of increase in water prices;

      5. challenges the organisation faces and effectiveness and efficiency measures that have been introduced to help respond to these challenges.

    3.2 Strategic Milestones Review for the Annual Plan 2008/2009

    1. That it be noted that the strategic milestones will be updated in line with the decisions made at the 5 March 2008 Combined Committees meeting, noting:

    Under the Arts, Community and Recreation heading

    1c - new management and conservation plan for Maungawhau -Mt Eden - change "under review" to "ongoing"

    1f - add "Mt Wellington" after the word "Maungarei"

    1. That it be noted that the milestones which are described as 'ongoing' or are due for completion in the 2008/2009 financial year will be published in the Annual Plan 2008/2009.

    4. 2008/2009 Budget and Policies

    4.1 2008/2009 Development Contributions Policy: Draft for Consultation

    1. That the proposed draft development contributions policy (covering community amenities, public space land acquisition, public space infrastructure, stormwater and transport), be included in the draft Long-term Council Community Plan 2006-2016, to allow public submissions on this draft policy, in accordance with the special consultative procedure, and to allow adoption of the new policy (with any changes arising from that process) for it to be in place for 1 July 2008.

    2. That authority be delegated to the Chair, Combined Committees and the General Manager City Development to make any minor amendments to the draft policy arising from this meeting (including consequential amendments needed because of other decisions) or arising out of further review of the draft policy by Auckland City Council's legal advisers.

    3. That officers be requested to investigate opportunities for further enhancing the development contributions policy, including its extension to the Hauraki Gulf Islands.

    4. That officers be requested to investigate the use of financial contributions to fund heritage initiatives.

    4.2. Metrowater and Water Prices

    1. That Auckland City Council's policy objective for water prices is to balance the key concern of affordability with the need to retain a programme of prudent, and as evenly paced as possible, price increases.

    2. That it be noted that as a result of the proposal by Auckland City Council for Watercare Services Limited's borrowing to be guaranteed, future Metrowater price increases are considerably lower than previously forecast.

    3. That Metrowater be requested to cap water price increases in line with Auckland City Council's rate of inflation for the next three years, which will give water users certainty over future water price increases and will have the effect of reducing charitable payments.

    4. That the return on public investment Auckland City Council requires of Metrowater be adjusted to permit water price increases in line with Auckland City Council's rate of inflation.

    5. That it be noted that using increased borrowing to partially replace Metrowater's charitable payments as a means of funding the stormwater network capital expenditure programme, is consistent with the Auckland City Council's debt policy.

    6. That borrowing be used, as a means of replacing revenue that would otherwise be obtained from Metrowater's charitable payments, in order to fund Auckland City Council's stormwater network capital expenditure programme.

    7. That the options to continue ensuring water users from non-rateable properties contribute to a return on public investment in Metrowater in the event of a cancellation of the charitable payments programme, and the difficulties associated with implementing those options, be noted.

    8. That it be noted that the Royal Commission into Regional Governance in Auckland may well make recommendations that have profound impact on the water industry.

    9. That Auckland City Council's water policy be revisited either after three years or once the recommendations of the Royal Commission into Regional Governance, the subsequent implementation plan and any resulting legislation are signalled.

    10. That as part of the draft Annual Plan 2008/2009 Auckland City Council consult the public on the various options for water prices, charitable payments and the rates implications, including the option of holding water prices within the rate of inflation and the consequential decrease in charitable payments.

    11. That Auckland City Council declares its intention to eliminate charitable payments over time subject to consultation with the public.

    4.3. Proposed Rates Policies for 2008/2009

    1. That a rates increase for 2008/2009 of 5.1 per cent be approved, which is equal to Auckland City Council's forecasted rate of inflation, to fund the draft budget for 2008/2009, and is half of the 10.2 per cent rates increase projected in the Long-term Council Community Plan 2006-2016.
    2. That the five value-based targeted rates for transport, open spaces and volcanic cones, heritage and urban design, community development and housing, and city development be discontinued, and that this funding be consolidated within the value-based general rate.
    3. That the rates increase be applied as a uniform annual general charge (UAGC) which would increase the present UAGC from $95 to $154, so all non-CBD residential properties would have a $82 increase (including the proposed $23 increase in the refuse collection targeted rate).
    4. That ratepayers be consulted on higher rates increases to fund deferred capital projects.
    5. That the refuse collection targeted rate continue to be applied as a uniform rate per service to fully fund the refuse services, and that the refuse collection targeted rate will increase from $199 to $222 per service for 2008/2009 to cover the higher costs for the new recycling service and the other existing services.
    6. That it be noted that the phasing out of Metrowater charitable payments will not impact rates for 2008/2009, but would require higher rates increases in subsequent years to fund the stormwater expenditure that was funded by charitable payments.
    7. That it be noted that rating policy decisions will be included in the Draft Annual Plan 2008/2009 for consultation.
    8. That it be noted that the final figures for resolutions A, C, and E may be amended if they are altered by final decisions made in Item 4.7 of the 5 March 2008 Combined Committees meeting.

    9. That the resolutions from the Annual Plan Direction Setting meeting held 12 December 2007 be adopted as follows:

      1. That the next step of the long-term general rate differential strategy, which transfers around $2.6 million from non-residential groups to the residential group be approved for 2008/2009.
      2. That the CBD targeted rate for the CBD non-residential group be increased in line with the reduction in the general rate by applying the next step of the general rate differential strategy (this will increase the targeted rate by around $2.3 million dollars to $10.7 million for 2008/2009).
      3. That the CBD targeted rate for residential units in the CBD be increased from $52 to $55 for 2008/2009.
      4. That it be noted that increasing the uniform annual general charge (UAGC) is consistent with Council policies, and that the upper limit of the UAGC is $580 per separately used or inhabited part of a property.
      5. That it be noted that increasing the uniform annual general charge will transfer rates from high-value properties to low-value properties.
      6. That the discount for full payment of rates by the first instalment date be increased from 2.83% to 3.2% for 2008/2009.
      7. That it be noted that at this stage, there are no proposed changes to the Council's assistance schemes.
      8. That officers investigate and report on the introduction of an appropriate rate or charge on visitor accommodation.

    4.4. Auckland City Heritage Policy Review - Incentives

    1. That the range of options available to enhance the existing heritage grants scheme be noted, but due to current budget constraints, there will be no action taken at this stage.

    2. That it be noted that officers will be investigating the use of financial contributions to fund built, and environmental heritage initiatives.

    3. That officers be requested to review the equity and effectiveness of the current heritage policy and processes for a report to the City Development Committee.

    4.5. Auckland City Environments Fees and Charges

    1. That the proposed increases to Auckland City Environments fees be approved as attached to the Manager business development, Auckland City Environments' report entitled "ACE fees and charges" dated 7 February 2008 [attached as 4.5A], but that the Chief Executive be requested to continuously improve the quality of service and minimize compliance costs for the customer:

    2. That the City Development Committee be requested to review the terms and conditions of public space use licences including obligations to maintain the quality of public space.

    4.6. Mainstreet Draft Budgets 2008/2009

    1. That the following Auckland City Council Mainstreet budgets be included in the 2008/2009 Annual Plan and Budget:
    Mainstreet Programme 2008/09 Budgets (excl GST)
    Avondale $96,000
    Blockhouse Bay $40,263
    Eden Valley $87,500
    Ellerslie $81,950
    Glen Innes $142,044
    Heart of the City $3,114,384
    Karangahape Road $250,981
    Mt Eden $68,035
    Newmarket $940,000
    Onehunga $349,920
    Otahuhu $363,000
    Panmure $332,750
    Parnell $268,015
    Ponsonby $200,000
    Remuera $214,170
    Rosebank $180,000
    St Heliers $119,900
    Total $6,848,912
    1. That the boundaries of all Auckland City Council's Mainstreet programmes remain the same as those for the 2007/2008 financial year.

    4.7. Update on Draft Budgets for 2008/2009

    1. That the resolutions from the February 2008 standing committees regarding capital deferrals be approved as follows:

    Row Project description Recommendation at 12 December APDS Resolution from 5 March 2008 Combined Committee
      Arts, Culture and Recreation Committee
    1 Peter Blake Memorial Defer one year Project not deferred
    2 254 Ponsonby Road Upgrade Defer three years Defer three years
    3 Auckland Museum surrounds and cenotaph upgrade Defer three years Not deferred
    4 Sylvia Park surrounds Defer three years Defer three years
    5 Glen Innes Town Centre upgrade (stage two) Defer three years Defer three years
    6 Volcanic landscape programme $1m in each of 2008/2009 and 2009/2010, rest defer one year $1m in each of 2008/2009 and 2009/2010, rest defer one year
    7 Tamaki Streetscape upgrade Defer three years Defer three years
    8 Mt Wellington quarry open space provision Defer three years Defer one year
    9 Lunn Avenue project Defer three years Defer one year
    10 Open spaces land acquisition Defer one year Defer one year
    11 Land purchases to improve harbours access Delete Defer to two years (from 2009/2010 to 2011/2012)
    12 Harbour walkways: Blockhouse Bay to Onehunga Delete Defer two years
    13 Waikaraka Park extension Delete Project is not deleted
    14 Glen Innes music and arts centre Delete Defer one year
    15 Pt Erin pool redevelopment Defer three years Defer two years
    16 Jordan Recreation Centre redevelopment Defer one year Defer one year
    17 Avondale community pool Delete Project is not deleted
    18 Auckland Domain sandcarpet installation Defer one year Defer one year
    19 Paved area renewals - citywide Defer one year Defer one year, except $500,000
    20 Auckland Zoo - Te Wao Nui Defer one year Defer one year
    21 Lorne Street stage 2 (Library and Canopy) Defer three years Defer three years
    22 Pah Homestead restoration Defer three years Defer three years, except $1.5 million
    23 Monte Cecilia Park development Delete Defer three years
    24 Town Hall Arts Precinct No recommendation Defer three years
    25 Rugby World Cup 2011 No recommendation $22 million Eden Park precinct support package and a $10 million programme of broader tournament related projects
      Community Services Committee
    26 Otahuhu library redevelopment Defer for 3 years Defer for 3 years
    27 Improving community facilities Reduce budget to $1.5m in 2008/2009, delete other years Reduce budget to $1.5m in 2008/2009, delete other years
    28 Blockhouse Bay library redevelopment Defer one year Defer one year
    29 Waiheke library redevelopment Defer one year Defer one year
    30 Mt Roskill library redevelopment Defer one year Defer one year
      Annual Plan Direction Setting Committee
    31 Q-theatre Defer three years $4.6 million in 2008/2009 and 2009/2010
      City Development Committee
    32 Wynyard Point marine events centre Defer one year Design and consenting in 2007/2008 and 2008/2009
    33 Defer construction by one year
    34 Wynyard Point TEAL Park infrastructure Defer three years Design and consenting within three years.
    35 Defer construction by three years (unless development contributions funding is realised sooner)
    36 Harbour Bridge Park infrastructure Defer three years Defer by three years (unless development contributions funding is realised sooner)
    37 Wynyard Point infrastructure development Defer three years Defer by three years
    38 Wynyard Point - Harbour Bridge park Defer by three years $800,000 for design and consenting in 2008/2009 (including Harbour Bridge Park), rest defer to 2010/2011 and 2011/2012.
    39 In same meeting: Defer three years (unless development contributions funding is realised sooner)
    40 Wynyard Point pedestrian overbridges Defer one year Defer one year
    41 Fanshawe St upgrade for Wynyard Point Defer one year Defer two years
    42 Regulatory programme No recommendation Additional $967,000 in 2008/2009 for extended timeframes and $300,000 in 2008/2009 for enhanced customer access to property file information
    43 Public space land acquisition for Wynyard Point Defer one year Defer one year (subject to timing and outcome of District Plan change process)
    44 International facilities Delete $20 million for 2011/2012, 2012/2013 and 2013/2014
    45 Stormwater water quality improvements Delete Delete - revise stormwater capital works programme to ensure Metrowater continues with its accelerated Cleaner Harbours programme and other high priority projects proceed.
      Transport Committee
    46 Bledisloe demountable parking building Delete Delete
    47 New wharves - Motuihe, Browns & Motutapu Defer three years Defer one year
    48 Liveable streets $1.5 million in 2008/2009, rest delete $1.5 million in 2008/2009, rest delete
    49 Footpaths upgrade Defer 50% of budget by one year Defer 50% of budget by one year
    50 School transport safety initiatives $300,000 in 2008/2009, rest defer by one year $300,000 in 2008/2009, rest defer by one year
    51 AMETI- land $33.75 million in 2008/2009, rest defer by one year $33.75 million in 2008/2009, rest defer by one year
    52 AMETI - construction Defer one year Defer one year
    53 Cycleway and walkway improvements Defer $3 million of budget by three years Defer $3 million of budget by three years
    54 Tiverton and Wolverton improvements Defer three years Defer three years
    55 Civic bus station improvements Delete Delete
    56 Neilson Street improvements Defer one year Defer one year
    57 Unscheduled land acquisition Defer 50% of budget by one year Defer 50% of budget by one year
    58 Road and intersection Improvements Defer 33% of budget by one year and defer 33% by 3 years Retain 2008/2009 budget and defer 33% of budget by one year and defer 33% by 3 years
    59 Rapid transport land purchases Defer 50% of budget by one year Defer 50% of budget by one year
    60 Fanshawe Street Defer one year Defer one year
      Finance and Strategy Committee
    61 Development with Vision land acquisition $95 million in 2009/2010, rest defer 3 years. $95 million in 2009/2010 (waterfront $70 million, Avondale and Tamaki Edge growth areas $25 million)
    62 $21 million in 2010/2011 (Otahuhu - other growth area land purchases)
    63 Rest defer to outer years including waterfront assets in 2011/2012.
    64 Active Edge Defer 3 years Aotea Square upgrade - no changes
    65 Active Edge - reduce by $7.9 million over 2009/2010 and 2010/2011.
    66 Civic carpark roof replacement - reduce by $6.5 million over three years (dependent on method of construction)

    1. That $1 million for new initiatives and $200,000 for enhancing Council's enforcement capability in the current zero tolerance to graffiti programme, to enable resources to be deployed to target the eight worst graffiti vandals operating within Auckland City be approved on an ongoing basis from 2008/2009.

    2. That a draft operating budget for 2008/2009 based on an overall rate increase of 5.1 per cent be approved.

    3. That the Fanshawe Street project be deferred by one year, as per the resolution from the February 2008 meeting of the Transport Committee.

    4. That it be noted:

      1. That officers will prepare the draft Annual Plan 2008/2009 and amendments to Auckland City Council's 2006‑2016 Long-term Council Community Plan document for adoption at the 27 March 2008 Council meeting, based on the outcomes from this meeting and the 12 December 2007 and 12 February 2008 Annual Plan Direction Setting meetings;

      2. That expenditure and revenues affecting outer year rate increases will be comprehensively reviewed as part of the 2009-2019 Long-term Council Community Plan process;

      3. That the capital expenditure programme for Wynyard Point - Harbour Bridge Park project is $800,000 for design and consenting in 2008/2009, with the remaining budget to be deferred to 2010/2011 and 2011/2012;

      4. That the three‑year Central Business District (CBD) new initiatives and capex programmes are funded from the CBD targeted rate.

    4.8. Urgent Decision of the Zoo Board - Zoo Admission Prices and Zoo Board Delegations
    1. That the decision on the proposed $50,000 in savings from Council funding for the Zoo be deferred, pending a broader review by the Zoo Board of admissions prices and service levels at the Zoo.

    2. That the review by the Zoo Board of admissions prices and service levels at the Zoo be conducted in the context of assessing inflation-related increases in costs to the Zoo's operations, and recognising the significant efficiency improvements and revenue generation achieved at the Zoo in recent years.

    Councillors Boyle, Casey, Easte, Fryer, Northey and Roche wished their vote against the motion to be recorded.

    There being no further business the Mayor closed the meeting at 4:30 pm.
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