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MINUTES OF A MEETING OF THE AUCKLAND CITY COUNCIL

HELD ON WEDNESDAY, 12 MARCH 2008 AT 6:00PM

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  
    Paul Goldsmith  
    Peseta Sam Lotu-Iiga  
    Toni Millar, JP  
    Graeme Mulholland, JP  
    Richard Northey, ONZM  
    Noelene Raffills  
    Denise Roche  

  1. Top APOLOGIES

    Councillor Christian moved:

    Councillor Casey seconded:

    That the apologies from Councillors Fryer and Moyle for non-attendance be accepted.

    CARRIED

  2. Top DEPUTATIONS

    There were no deputations.

  3. Top EXTRAORDINARY BUSINESS

    Councillor Boyle tabled a notice of motion regarding the Waiheke resource recovery park.

    [ATTACHMENT 3]

    Councillor Boyle moved:

    Councillor Christian seconded:

    That an extraordinary item of business be considered as item 6 regarding a notice of motion: Waiheke Resource Recovery Park.

    The motion was put by show of hands and declared LOST 11 votes to 6 votes.

  4. Top EXCLUSION OF THE PUBLIC : LOCAL GOVERNMENT OFFICIAL INFORMATION AND MEETINGS ACT 1987

    A letter from Penny Bright was tabled requesting the whole of the Canada Pension Plan Investment Board item be considered in the open section of the meeting.

    [ATTACHMENT 4]

    His Worship the Mayor moved:

    Councillor Christian seconded:

    1. 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 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, 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 Evaluation of Canada Pension Plan Investment Board (CPPIB) partial takeover for Auckland Airport Public conduct of matter would be likely to result in disclosure of information for which good reason to withhold exists under section 7. Section 7(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.

    Section 7(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 commercially sensitive information that if released could compromise the ability of the council to optimise its investment in Auckland International Airport Limited. A public version of the report will be released after the Canada Pension Plan Investment Board takeover offer closes.

    		 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.
    1. That Simon Vodanovich and David Thomson, Partners, Buddle Findlay and Chris Dorn, Director, PriceWaterhouseCoopers be permitted to remain at this meeting after the public has been excluded for confidential item C1, because of their knowledge of the council's evaluation of the Canadian Pension Plan Investment Board partial takeover offer.  This knowledge, which will be of assistance in relation to the matter to be discussed, is relevant to that matter because of the legal, financial and technical aspects of the evaluation.

    CARRIED

    His Worship the Mayor moved:

    Deputy Mayor David Hay seconded:

    1. That the meeting move into confidential to allow councillors the opportunity to ask questions of a confidential nature in relation to the Canada Pension Plan Investment Board takeover offer and that following this the confidential resolutions only, be moved into the public section of the meeting for debate and the final decision.

    CARRIED

    The Chairman adjourned the meeting at 6:15pm for 5 minutes to allow the venue to be cleared of persons who refused to leave for the public excluded item and were prejudicing the orderly conduct of the meeting. The public were being excluded in accordance with Section 48 of the Local Government Official Information and Meetings Act 1987. The meeting reconvened at 6:23pm.

    The Chairman adjourned the meeting from 6:26pm to allow the venue to be cleared of persons who refused to leave for the public excluded item and were prejudicing the orderly conduct of the meeting. The public were being excluded in accordance with Section 48 of the Local Government Official Information and Meetings Act 1987. The meeting reconvened at 6:54pm.

  5. Top EVALUATION OF CANADA PENSION PLAN INVESTMENT BOARD (CPPIB)

    Secretarial note:  This item was item C1 in the confidential agenda.  The resolutions were moved to the open section of the meeting for debate and decision.

    Officers tabled a public version of the Canada Pension Plan Investment Board partial takeover for Auckland Airport and a copy of the Auckland City Council policy on Auckland Airport shares.

    [ATTACHMENT 5 AND 5A]

    His Worship the Mayor moved:

    Deputy Mayor David Hay seconded:

    1. That the council notes:
      1. that the council confirmed that it would not sell its Auckland Airport shares at its 28 February 2008 meeting as per the council's Auckland Airport shares policy
      2. that while the Canada Pension Plan Investment Board proposal is acceptable in terms of the council's Auckland Airport shares policy there is no compelling reason for the council to support the bid
      3. that on balance, officers believe that over the medium to longer-term that the council would have more chance of a transaction occurring that better meets its objectives without Canada Pension Plan Investment Board (CPPIB) holding a 40 per cent stake in Auckland International Airport Limited (AIAL)
      4. that the strict requirement not to sell its shareholding in Auckland International Airport Limited (AIAL) has increased the likelihood of the Canada Pension Plan Investment Board (CPPIB) proposal being supported by other shareholders and would prevent council from capturing its share of the control premium if the CPPIB proposal is successful.
    2. That the council objects to Canada Pension Plan Investment Board holding a 40 per cent shareholding in Auckland Airport.
    3. That officers work with stakeholders and interested parties to explore opportunities to improve the financial performance of the council's shareholding in Auckland International Airport Limited.

    CARRIED UNANIMOUSLY

    There being no further business His Worship the Mayor declared the meeting closed at 7:30pm.
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