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MINUTES OF AN EXTRAORDINARY MEETING OF THE
AUCKLAND CITY COUNCIL
HELD ON WEDNESDAY, 4 MARCH 2009 AT 2:00PM
IN THE RECEPTION LOUNGE, LEVEL TWO
AUCKLAND TOWN HALL

PRESENT: His Worship the Mayor, Hon John Banks, QSO [from 3:00pm]
  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  
    John Lister, OBE  
    Toni Millar, JP  
    Greg Moyle, ED [from 3:00pm]
    Graeme Mulholland, JP  
    Richard Northey, ONZM  
    Noelene Raffills  
    Denise Roche  

  1. Top APOLOGIES

    Deputy Mayor David Hay moved:
    Councillor Bhatnagar seconded:

    That the apologies from Councillor Lotu-Iiga for non-attendance, Councillor Moyle and His Worship the Mayor for lateness be accepted.

    CARRIED

    Deputy Mayor David Hay moved:
    Councillor Lister seconded:

    That the Council meeting adjourn until 3:00pm.

    CARRIED

    Secretarial note: The meeting adjourned at 2:02pm and reconvened at 3:00pm.

    Deputy Mayor David Hay moved:
    Councillor Lister seconded:

    That the Council meeting adjourn until 3:30pm.

    CARRIED

    Secretarial note: The meeting adjourned at 3:02pm and reconvened at 3:30pm.

    Deputy Mayor David Hay moved:
    Councillor Goldsmith seconded:

    That the Council meeting adjourn until 3:45pm.

    CARRIED

    Secretarial note: The meeting adjourned at 3:31pm and reconvened at 3:52pm.

  2. Top EXTRAORDINARY BUSINESS

    There was no extraordinary business.

  3. Top COMBINED COMMITTEES REPORT NO. 01/2009

    Secretarial note: The numbering of items associated with the 4 March 2009 Combined Committees report number 01/2009 relates to the agenda and minutes numbering of the Combined Committees meeting.

    Deputy Mayor David Hay moved:
    Councillor Goldsmith seconded:

    1. That the recommendations contained in the Combined Committees report No. 01/2009 be adopted ie:

    3. THE CHIEF EXECUTIVE'S OVERVIEW OF DIRECTION SETTING FOR THE TEN-YEAR PLAN

    1. That it be noted that the Draft Ten-year Plan 2009-2019 contains the proposed budget and funding statements to produce an average increase in rates of 2 per cent for 2009/10.
    2. That it be noted that due to lower inflation projections the council's rate of inflation for 2009/10 has been revised down since November from 5 per cent to 2.5 per cent.
    3. That it be noted that the draft budget includes no additional budget provision for staff wage or salary increases in the coming year in view of the council's overriding objective to minimise rates increases for businesses and homeowners during the recession.
    4. That it be noted that a combination of the revised capital expenditure, identified operational savings, lower inflation projections and the decision to make no additional budget provision for staff wage or salary increases in the coming year has resulted in the proposed average increase in rates of 2 per cent.
    5. That it be noted that to achieve the required fiscal targets and savings, the council will have to carefully prioritise its activities and projects, and will need to achieve savings from suppliers.
    6. That it be noted that notwithstanding the prevailing period of significant economic uncertainty and the pending announcement of Auckland's governance structure, it remains important for the council to plan ahead to achieve its policy of affordable progress and maintain its momentum in the delivery of projects and services. Council will however carefully monitor the economic environment and take sensible financial expenditure decisions on specific projects depending on the prevailing circumstances.

    4. CHANGES TO THE TEN-YEAR PLAN ASSUMPTIONS/GUIDELINES MADE SINCE 18 NOVEMBER DIRECTION SETTING MEETING

    1. That it be noted that council's rate of inflation is estimated to be 2.5% for 2009/10, rising to 2.8% in 2018/19.
    2. That it be noted that the budgets include an efficiency savings requiring the Chief executive to deliver savings of 1% each year in the first three years ($4.6 million in 2009/10) and 0.5% for the next three years ($2.5 million inflated).
    3. That it be noted that the rate increase for 2009/10 is 2%, being less than the council rate of inflation of 2.5%. In all other years, the rating increase equates with council's inflation.
    4. That it be noted that the Ten-year Plan funds capital expenditure of $3.5 billion, with $532 million planned for 2009/10 representing the highest annual capital expenditure programme in the history of the city.
    5. That the adoption of the budgets for inclusion in 2009-2019 Ten-year Plan be approved.

    5. ACE AND CITY PLANNING FEES AND CHARGES REPORT

    1. That it be noted that various legislation empowers Auckland City Council to recover the reasonable costs it incurs by providing certificates, authorities, approvals, permits or consents, or undertaking inspections or to apply fees or charges for certain functions and activities. Each year the Auckland City Council reviews those fees and charges that are not fixed by legislation to ensure they remain appropriate in light of any changes in the cost of providing the services.
    2. That it be noted the council's policy of full cost recovery of the private good element of development and regulatory services is through fees and charges.
    3. That it be noted that extensive work was done through the Regulatory Programme in significantly upgrading the council's regulatory systems and processes, and that the business case for this programme identified the need to fund this with a fees and charges increase once the programme went live. The programme is not fully operational and the level of fees and charges reflects the council's resolutions.
    4. That it be noted that the nature of a varied workload, with peaks above base consent volumes, will require some consultant services and that it is equitable to cover these additional costs in the standard fees and charges, rather than penalise the customer whose jobs need to be outsourced or subsidise this work from ratepayers.
    5. That the proposed increases to Auckland City Environment and City Planning's fees and charges be approved for consultation in the Ten Year Plan with the Chief Executive reporting to City Development Committee on the possibility of reducing the increases for low-value projects consent applications.

    6. PROPOSED RATES RELATED POLICIES FOR 2009/10

    1. That a 2.0 per cent overall citywide rates increase (excluding the CBD, mainstreet, and additional recycling targeted rates), which reflects council's rate of inflation reducing to 2.5 per cent, and the Chief Executive's agreement not to include any increase in the salary budget for 2009/10, be confirmed.
    2. That a change in the refuse collection targeted rate from $210 to $193 per service to fully fund the cost of the services be confirmed.
    3. That a change in the level of remission from $128 to $113 for an approved alternative rubbish service and changing the level of remission for an approved alternative recycling service from $71 to $75 be confirmed for 2009/10.
    4. That the level of the new targeted rate for each additional recycling service to be $75 be confirmed for 2009/10.
    5. That increasing the CBD targeted rate for residential ratepayers from $55 to $57, based on the lower inflation rate be confirmed.
    6. That a discount for early payment of rates of 1.5 per cent be confirmed for 2009/10, as this level reflects council's lower short-term borrowing rate for that year of 4 per cent (which in turn, is based on the projected official cash rate for 2009/10 at 4 per cent), and is fiscally neutral to council. It is equivalent to a pre-tax investment rate of 5.92 per cent for ratepayers, which is not normally available to individuals through small-scale retail deposits with banks.
    7. That the penalty for late payment of rates continues to be 10 per cent and is a reasonable disincentive to paying rates late be confirmed.
    8. That it be noted that the council budgets on the basis of projected income and any unpaid rates are funded by bank overdraft. Late payment of rates imposes an additional and unfair financial burden on the city's other ratepayers. In addition, there are administration costs to council for following up on late payment of rates. By mitigating late payments, council can better control these costs.
    9. That it be noted that all other decisions from the October 2008 and November 2008 Direction Setting meetings and any changes to them resulting from the decisions from this meeting will be included in the Draft 2009-2019 Ten-year Plan for consultation with the public.
    10. That the Uniform Annual General Charge (UAGC) be increased from $162 to $250 per separately used or inhabited part (SUIP) for 2009/10.

    7. DEVELOPMENT CONTRIBUTIONS POLICY 2009: PROPOSED DRAFT POLICY FOR CONSULTATION

    1. That the adoption of the attached draft Development Contribution Policy (subject to resolution (E) below) to be included in the council's draft Ten-year Plan, to be consulted on through April and May 2009 to support the possible adoption in June of a revised Development Contributions Policy as part of the Ten-year Plan 2009-2019 be approved.
    2. That it be noted the draft Development Contribution Policy should provide for development contributions to be charged for the transport activity throughout the whole city (and in particular that this charge be extended to apply to the Hauraki Gulf islands as it does for the isthmus), to both residential and non-residential developments.
    3. That it be noted that an approach to delivering equality of charges over time that is based on increasing the charges each year in line with the council's rate of inflation (except where it is required to do otherwise), thereby improves equity in the context of the currently planned capital programme.
    4. That it be agreed that funding growth-related capital costs through development contributions is considered to appropriately reflect the way that benefits are expected to accrue from, and the reasons for, the underlying capital programme, and to be consistent with the well-being of the community over time and known information on the views of the community.
    5. That Council delegates to the Chairperson of the Finance and Strategy Committee and the General Manager City Development the authority to make any changes to the draft Development Contribution Policy to be included in the draft Ten-year Plan as are needed to reflect other decisions at this meeting or any further legal advice that may be received.

    8. REFINEMENT TO TREASURY MANAGEMENT POLICY FOR 2009 - 2019 LTCCP

    1. That it be agreed to consult on the following adjustment to the Treasury Management Policy via the draft 2009-2019 Ten-year Plan:
      1. permitting borrowing to fund the impacts on ratepayer equity from payments associated with discovered liabilities, eg weathertightness payments, remediation of closed landfill and remediation of other contaminated sites.
    2. That it be noted that this change is in addition to the changes to the Treasury Management Policy endorsed for consultation at the 18 November 2008 Direction Setting meeting.
    3. That it be agreed that the draft Treasury Management Policy wording attached as Appendix I of the "Refinements to Treasury Management Policy for 2009 - 2019 LTCCP" report as set out and amended by resolution D be included in the draft Ten-year Plan, with authority to approve any minor wording changes delegated to the Chairperson of the Finance and Strategy Committee.
    4. That the new Sustainable Debt Policy requirements be that borrowing is permitted, subject to oversight by the treasury management steering group where:
      1. The liability concerned was not previously anticipated or is expected to be considerably higher than previously anticipated;
      2. Funding this operational expenditure from rates would place a significant burden on current ratepayers;
      3. Debt will assist in promoting intergenerational equity by spreading responsibility for funding these issues across generations; and
      Additionally, 60% of any debt should be repaid over 30 years on a straight line basis.
    5. That the policy of repaying 60% of debt over 30 years be reviewed during the next review of the Treasury Management Policy.

    9. MAINSTREET AND BUSINESS IMPROVEMENT DISTRICTS DRAFT BUDGET 2009-2010

    1. That it be approved that the following draft mainstreet and business improvement district (BID) budgets for inclusion in the 2009/10 Annual Plan and Budget, in order to continue supporting the improvement and success of Auckland city's business and town centres through the Mainstreet and BID programmes:
    Mainstreet / BID
    Proposed 2009/10
    Programme Budgets
    (excl GST)
    Avondale 100,000.00
    Blockhouse Bay 40,263.00
    Eden Valley 97,500.00
    Ellerslie 91,850.00
    Glen Innes 156,248.40
    Heart of the City 3,414,384.00
    Karangahape Road 250,981.00
    Mt Eden 68,035.27
    Newmarket 1,190,000.00
    Onehunga 367,416.00
    Otahuhu 370,000.00
    Panmure 366,025.00
    Parnell 281,416.00
    Ponsonby 220,000.00
    Remuera 224,170.00
    Rosebank 198,000.00
    St Heliers 131,890.00
    Total $7,568,179.67
    1. That it be noted that the boundaries of all Mainstreet and BID programmes remain the same as those for the 2008/09 financial year, except for Newmarket business association which by unanimous vote of the non-residential property ratepayers is expanding its boundary to better reflect and represent the Newmarket business precinct.
    2. That it be noted that the Newmarket BID area is extended to Carlton Gore and Khyber Pass roads and their side streets, George, Railway and Leek streets at the northern end of Broadway and an extension on the southern end to Alpers Ave and St Marks Rd. This change follows the Newmarket boundary extension poll concluded successfully in December 2008 with a 50 per cent voter turnout and a 91.4 per cent in favour of extending the BID area.
    3. That the boundary map for Newmarket business association be approved for 2009-2010 financial year.
    4. That officers actively encourage the extension of the mainstreets programmes across the city provided it is at minimal cost to ratepayers (i.e. a methodology be developed to recover the cost over time of establishing new mainstreets).

    10. FOLLOW UP: RATEPAYER DIFFERENTIALS AND DEFINITIONS

    1. That it be confirmed that there are no new recommended changes to the recommendations resolved at the November 2008 Direction Setting meeting, as basing the definition on actual use ensures equity so that properties that are used for the same purpose are rated on the same basis.
    2. That it be noted that council cannot continue to use the 2005 valuations for Great Barrier Island, as this is not permitted under the Rating Valuations Act and the Rating Valuations Rules.
    3. That it be recognised that there are equity issues around applying a minimum size requirement to vacant blocks and bush blocks (including those with a residence) and that the minimum size be reduced to 5 hectares that are proposed to be incorporated into the Farming and open space definition for the purpose of consultation with the public, and that the officers briefly report back on the implications of the minimum size being 4 or 5 hectares.
    4. That officers investigate the ability of council to guarantee the right of ratepayers to request a revaluation at no extra cost when the actions of council has a material effect on their existing valuation.

    11. PROPOSED CHANGES TO THE CAPITAL EXPENDITURE PROGRAMME

    1. That it be noted that officers have conducted a review of the capital expenditure programme for 2009/10 approved at the 18 November direction setting meeting. The review was required to present a budget that more accurately reflected the cost of the projects, timing of when they would be done and capacity of the organisation to deliver the full programme. This resulted in the 2009/10 programme being reduced by $20.3 million through expenditure being brought forward, deferred or reduced.
    2. That the following changes arising from the timing and feasibility review (refer Attachment 1 section B) be approved.
    3. That the following changes to council's operating expenditure budget be approved:
      1. The reduction to assumed operating budget savings for the Edge of $126,000 in 2009/10, $226,000 in 2010/11 and $326,000 for the remaining years of theTen-year Plan;
      2. The increase in the noise control budget of $200,000 for 2009/10 and $300,000 per annum thereafter; and
      3. The increase in the budget for the Tamaki transformation project, $200,000 per annum.
    4. That the following changes to council's capital expenditure programme be approved:
      1. The timing of the Marine Events Centre and the Te Wero bridge capital projects and the associated consequential OPEX over the plan period. The MEC will be completed in 2011 and the Bridge in 2016;
      2. The increase of $6.7 million in the capital expenditure to provide for the full restoration of the Pah Homestead;
      3. The timing of the Onehunga foreshore development project being brought forward by two years to coincide with the NZTA programme of work on SH 20;
      4. The $890,000 increase in the budget for the combined library and service centre on Waiheke Island;
      5. The changes to the timing of the open space development at Stonefields (Lunn Ave), the works to undertaken in 2009/10; and
      6. The additional $4.0 million required to develop sports fields in proposed park acquisitions.
    5. That the following be agreed to in relation to elephants at Auckland Zoo:
      1. That council confirm its desire to have a herd of elephants at Auckland Zoo; and
      2. That this will require substantial establishment funding totalling some $13 million over a number of years (with ongoing OPEX) and that this should be funded from national, regional and local government, local authorities, and private and commercial sources; and
      3. That provision be made in the 2009/10 year to conceptualise the campaign, noting that the council will be contributing and that the outcome of the Royal Commission will determine the future governance and related responsibilities of the Zoo; and that the Chief Executive report to the June Combined Committees meeting on an appropriate provision.
    1. That the Combined Committees items 12, 13 and 14 being:
    • Item 12 - Statement of Proposal Ten-Year Plan 2009 - 2019
    • Item 13 - Marinas - Governance and User Representation
    • Item 14 - Statements of Proposal Relating to the Establishment of a Holding Company

    be referred to the 26 March 2009 Council meeting after the Audit Office review for adoption.

    Councillor Northey moved the following amendments:
    Councillor Boyle seconded:

    Item 4 C - by way of replacement:

    1. That it be noted that the rate increase for 2009/10 be 4.2%, being somewhat greater than the council rate of inflation of 2.5%. In all other years the rating increase will be marginally higher than council's rate of inflation but never higher than 3.5% more, as demonstrated in the table below:
      2009/
    2010    		 2010/
    2011    		 2011/
    2012    		 2012/
    2013    		 2013/
    2014    		 2014/
    2015    		 2015/
    2016    		 2016/
    2017    		 2017/
    2018    		 2018/
    2019
    Proposed additional capital spend 2.2% 3.5% 3.3% 3.4% 3.2% 3.2% 3.3% 3.4% 3.3% 3.3%
    Draft 10 year plan 2.0% 2.5% 2.5% 2.6% 2.6% 2.6% 2.7% 2.7% 2.7% 2.8%

    Item 4 D - by way of replacement:

    1. That it be noted that the Ten-year Plan funds capital expenditure of $3.8 billion with $571 million planned for 2009/10.

    Item 6 A and J - by way of replacement and adding a new K:

    1. That a 4.2 per cent overall citywide rates increase (excluding the CBD, mainstreet, and additional recycling targeted rates), which reflects council's rate of inflation reducing to 2.5 per cent, and provision for allowance for salary increase set at estimated market rate of 2% and provision for a range of projects the net cost of which is to be a 1.7% rate rise.
    1. That the Uniform Annual General Charge (UAGC) reduced from $162 to $95 per separately used or inhabited part (SUIP) for 2009/10.
    2. That to the extent that council achieves any unbudgeted savings, top priority be given to increasing the provision for staff salaries and wages.

    Item 9 E - by way of replacement:

    1. That officers actively encourage the extension of the mainstreets programmes across the city provided it is at minimal cost to ratepayers.

    Item 11 C (i) and D (i), (ii), (iii), (iv), (v) and adding new resolutions F, G, H, I, J and K:

    1. That the following changes to council's operating expenditure budget be approved:
      1. That the reduction to assumed operating budget savings for The Edge be $326,000 in 2009/10 and 2010/11 and $426,000 for the remaining years of the Ten-year Plan.
    2. That the following changes to council's capital expenditure programme be approved:
      1. While agreeing to the Marine Events Centre project cost being reduced by $1.5 million in the capital budget which will be achieved by approving a simpler design for the roof;
      2. Pah Homestead - The increase of $5.733 million in the capital expenditure being a reduction of $966,310 by choosing Option B in the officer's report, to provide for the full restoration of the Pah Homestead;
      3. The timing of the Onehunga foreshore development project being brought forward by two years to coincide with the NZTA programme of work on SH 20 increased by $2 million in 2010/11 in order to enhance the connectivity between the Onehunga Town Centre and the pedestrian bridge, and that $6.6 million be allocated in 2011/12 being for reclamation between the Manukau Crusing Club and the Sea Scouts building at a cost of $6.4 million, and for the Gloucester Park upgrade with an estimated council contribution of $0.2million.
      4. that the issue of the possible combination of the Waiheke Library and Service Centre be consulted on in a separate consultation process with Waiheke people and in the interim appropriate funds be set aside for an early upgrade of staff accommodation at the Waiheke Service Centre.
      5. that option 3 from the officer's report be adopted, being an additional budget of $2.1million for a library at Oneroa at a cost of $3.642 million and a service centre at Ostend at a cost of $4.008 million, but with most of the spending on the Ostend Service Centre postponed for two years.
    1. That budgetary provision for children's playground repair and maintenance be increased by $1 million per year from 2009/10 and succeeding years in order to deal with the unsatisfactory state of children's playgrounds in Mission Bay, Ellerslie and elsewhere.
    2. That the following amendment proposed at 18 November 2008 Long-term Council Community Plan Direction Setting (LTCCP DS) meeting and tabled again at the 18 February 2009 Finance and Strategy Committee meeting be incorporated in to the Ten-year Plan capital expenditure programme:
    Committee PG Number Project group Description Type of Change 10 Year Total
    Arts, Culture and Recreation Committee 97 Swimming pools For a swimming pool in Otahuhu Increase of $7.5 million in 2015/16 and 2016/17 $15 million
    1. That the following amendment proposed at 18 November 2008 LTCCP DS and tabled again at the 18 February 2009 Finance and Strategy Committee meeting be incorporated in to the Ten-year Plan capital expenditure programme:
    Committee PG Number Project group Description Type of Change 10 Year Total
    Arts, Culture and Recreation Committee 57 Glen Innes Music Art Centre A new building for youth to develop music and art skills Restore $2 million in 2013/14 and $3 million in 2014/15 $5 million
    1. That the appropriate provision be made in the LTCCP for a budget to conduct by-elections in each of the 2 years following Council elections, i.e. 2009/10; 2011/12, 2012/13, 2014/15, 2015/16, 2017/18 and 2018/19.
    2. That the following amendments proposed at 18 November 2008 LTCCP DS and tabled again at the 18 February 2009 Finance and Strategy Committee meeting be incorporated in to the Ten-year Plan capital expenditure programme:
    Committee PG Number Project group Description Type of Change 10 Year Total
    City Development Committee 143 Waiheke Island waste minimisation initiatives Purchase of wheelie-bins and upgrade of the present facility of handling Waiheke Island refuse Reduce by $450,000 through removing purchase of wheelie-bins $450,000
    Arts, Culture and Recreation Committee 26 Churchill park Stage 2   $250,000 for 2009/10 and $550,000 for 2010/11 $800,000
    City Development Committee 129 Stormwater programme Flood alleviation, development of infrastructure, improvement of water quality drained to the sea Increase by $43 million over the 10 years and exact timing to be determined $273 million
    Community Services Committee 32 Citywide library furniture and fitting renewals Cyclical renewals of furniture and fittings in libraries around the city Increase by $90,000 $1.691 million
    Community Services Committee 45 Current use collection renewals Renewals to refresh and improve current collections. Increase by $2 million $39.3 million
    Transport Committee 53 Footpaths Construction of new footpaths around the city Increase by $39.5 million over the first 5 years $258 million
    Transport Committee 105 Passenger Transport Initiatives Developing park and ride facilities to support rapid transport (bus/rail stations). Sites include Glen Innes, Panmure, Orakei, Avondale and Otahuhu Increase by $3.5 million over the first 3 years $3.625 million
    Transport Committee 117 Road safety Cyclical safety renewals of roads in the city Increase by $400,000 per annum $60 million
    Transport Committee 124 Specific projects Sandringham Road Redevelopment. Reduce by $10.5 million $10.5 million
    Arts, Culture and Recreation Committee 16 Avondale pool development Construction of a swimming pool in Avondale $508,891 commencing in 2017/18, $7,000,183 in 2018/19 $7,491,305 in 19/20 $7.5 million (note that the remaining $7.5 million will need to be funded in 2019/20)
    Arts, Culture and Recreation Committee 37 Citywide town centre upgrade Town centre upgrades, including Pt Chevalier and Royal Oak $650,000 in 2009/10 and $120,000 in 2010/11 and $830,000 in 2011/12 $1.6 million
    Arts, Culture and Recreation Committee 52 Facilities partnerships Partner with external organisations (eg, schools or community organisations) and provide grant for facilities Restore budget of $9 million and increase by another $10 million, and spread over years as previously $19 million
    Arts, Culture and Recreation Committee 59 Glen Innes town centre upgrade AUL P1 Upgrade of Glen Innes town centre Restore original budget at $7 million $7 million
    Arts, Culture and Recreation Committee 70 Land purchases to improve harbours access Acquisition of land to improve access to coast $5 million in 2011/12 $5 million
    Arts, Culture and Recreation Committee 80 Michaels Ave Reserve Amenity building Demolish existing building and build new changing rooms. Sports clubs have been fundraising to build new clubroom on top $1 million in 2011/12 $1 million
    Arts, Culture and Recreation Committee 85 Mt Richmond development Improve quality of existing reserves at Mt Richmond, including Sturges park Increased $100,000 in 2013/14 and $800,000 in 2014/15 and $300,000 in 2015/16 $1.2 million
    Arts, Culture and Recreation Committee 102 Park network development Development of park network around the city Increase to $2 million per annum, noting $4 million has already been allocated Captain Springs and Barrack road $16 million
    Arts, Culture and Recreation Committee 120 Service level improvement Purchase of land and park development. Both are growth related and service level improvements Increase to $9 million per annum commencing from 2015/16 onwards $36 million
    Arts, Culture and Recreation Committee 133 Sylvia Park surrounds Development of Sylvia park surrounds $2 million 2014/15 and $2 million in 2015/16 $4 million
    Arts, Culture and Recreation Committee 134 Tamaki Streetscape Upgrade Upgrade of streetscapes $2 million per annum in 2015/16, 2016/17 and 2017/18 $6 million
    Arts, Culture and Recreation Committee 145 Waikaraka Park extension Extension of Waikaraka park $10 million in 2009/10 $10 million
    City Development Committee 51 Economic Development Development of broadband around the city $5 million per annum in 2009/10 and 2010/11 $10 million
    Community Services Committee 42 Community centre and hall growth projects Expansion of centres and halls to provide for growth $1 million per annum $10 million
    Community Services Committee 75 Glen Innes Library Development of the Glen Innes Library $750,000 in 2012/13 and $750,000 in 2013/14 $1.5 million in 2011/12
    Transport Committee 53 Footpaths Construction of new footpaths around the city $39.5 million over the first 5 years $39.5 million
    Transport Committee 63 Hauraki Gulf specific projects To investigate, prepare construction drawings and implement physical works to renew existing bridges, seawalls and retaining walls that are nearing the end of their design life $171,000 per annum for all 10 years $1.71 million
    Transport Committee 77 Liveable streets An investment programme to manage speed in residential streets where safety issues and speed related crashes have been identified $1.5 million per annum $15 million
    Transport Committee 87 Neighbourhood Accessibility Plan & Travel Demand Management   $500,000 per annum $5 million
    Transport Committee 105 Passenger Transport Initiatives Reduction $1 million per annum $10 million
    Arts, Culture and Recreation Committee 67 Beach Restoration Upgrade of beaches across the city. Other work is still being scoped out, but will include Point England. Restoration work includes dredging, resanding of beaches and provision of other amenities (e.g boardwalks) Reduce $1.5 million in 2009/10 and $3.5 million from 2010/11 for Judges Bay $5 million
    Arts, Culture and Recreation Committee 30 Citywide artworks Art works around the city Increase by $7.1 million so that there is $2 million of expenditure each annum $20 million
    Arts, Culture and Recreation Committee 102 Park network development Development of park network around the city Increase by $3.6 million in 2016/17, 2017/18 and 2018/19 $64.556 million
    Arts, Culture and Recreation Committee 146 Waterfront Programme Development of waterfront, including Wynyard Quarter development and development of Harbour Bridge Park and Marine Events Centre Reduce by $1 million in 2009/10 $1 million
    Community Services Committee 86 Mt Roskill library development Redevelopment of Mt Roskill library facilities No budget change - move timetable to 2015/16 and 2016/17 $1.598 million
    Transport Committee 46 Cycleway and Walkway Improvements Improving cycle and walkways initially in CBD, Kingsland, Mt Albert and Newmarket Increase by $23 million to the original programme $27.1 million
    Transport Committee 63 Hauraki Gulf specific projects To investigate, prepare construction drawings and implement physical works to form a new public road on Jenny's road (Great Barrier Island) No budget change - Restore original timetable $1.8 million
    Transport Committee 105 Passenger Transport Initiatives Land purchase and detailed design of improvement for Dominion Road Reduce $1 million over the 8 years programme $75.958 million
    Transport Committee 117 Road safety Safety initiatives to improve safety around schools Restore original budget $48.108 million
    1. That the following amendment proposed at 18 November 2008 LTCCP DS and tabled again at the 18 February 2009 Finance and Strategy Committee meeting be incorporated into the Ten-year Plan capital expenditure programme:
    Committee PG Number Project group Description Type of Change 10 Year Total
    Arts, Culture and Recreation Committee 102 Park network development Development of park network around the city Increase by $303,000 in 2010/11 for Grey Lynn park $303,000
    Arts, Culture and Recreation Committee 102 Park network development Addition and improvements to the park network Reduced $21,653,000
    Arts, Culture and Recreation Committee 67 Beach Restoration Upgrade of beaches across the city and water quality improvement in Cox's Bay Reduced $1.5 million in 2009/10 and $3.5 million in 2010/11 for Judges Bay and divert the allocation into the water quality at Cox's Bay. Nil net effect
    Community Services Committee 60 Grey Lynn library development This redevelopment was scheduled to occur in 2013/14 but has been DEFERRED beyond 10 years Restore $1.5 million in 2013/14 $1.5 million

    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 Douglas Armstrong

    Cr Ken Baguley

    Cr Aaron Bhatnagar

    Cr Bill Christian

    Cr Mark Donnelly

    Cr Paul Goldsmith

    Deputy Mayor David Hay

    Cr John Lister

    Cr Toni Millar

    Cr Greg Moyle

    Cr Graeme Mulholland

    Cr Noelene Raffills

    His Worship the Mayor


    Cr Peseta Sam Lotu-Iiga was absent.

    The amendment was declared LOST by 13 votes to 6.

    His Worship the Mayor put the following substantive motion:

    1. That the recommendations contained in the Combined Committees report No. 01/2009 be adopted ie:

    3. THE CHIEF EXECUTIVE'S OVERVIEW OF DIRECTION SETTING FOR THE TEN-YEAR PLAN
    1. That it be noted that the Draft Ten-year Plan 2009-2019 contains the proposed budget and funding statements to produce an average increase in rates of 2 per cent for 2009/10.
    2. That it be noted that due to lower inflation projections the council's rate of inflation for 2009/10 has been revised down since November from 5 per cent to 2.5 per cent.
    3. That it be noted that the draft budget includes no additional budget provision for staff wage or salary increases in the coming year in view of the council's overriding objective to minimise rates increases for businesses and homeowners during the recession.
    4. That it be noted that a combination of the revised capital expenditure, identified operational savings, lower inflation projections and the decision to make no additional budget provision for staff wage or salary increases in the coming year has resulted in the proposed average increase in rates of 2 per cent.
    5. That it be noted that to achieve the required fiscal targets and savings, the council will have to carefully prioritise its activities and projects, and will need to achieve savings from suppliers.
    6. That it be noted that notwithstanding the prevailing period of significant economic uncertainty and the pending announcement of Auckland's governance structure, it remains important for the council to plan ahead to achieve its policy of affordable progress and maintain its momentum in the delivery of projects and services. Council will however carefully monitor the economic environment and take sensible financial expenditure decisions on specific projects depending on the prevailing circumstances.

    4. CHANGES TO THE TEN-YEAR PLAN ASSUMPTIONS/GUIDELINES MADE SINCE 18 NOVEMBER DIRECTION SETTING MEETING
    1. That it be noted that council's rate of inflation is estimated to be 2.5% for 2009/10, rising to 2.8% in 2018/19.
    2. That it be noted that the budgets include an efficiency savings requiring the Chief executive to deliver savings of 1% each year in the first three years ($4.6 million in 2009/10) and 0.5% for the next three years ($2.5 million inflated).
    3. That it be noted that the rate increase for 2009/10 is 2%, being less than the council rate of inflation of 2.5%. In all other years, the rating increase equates with council's inflation.
    4. That it be noted that the Ten-year Plan funds capital expenditure of $3.5 billion, with $532 million planned for 2009/10 representing the highest annual capital expenditure programme in the history of the city.
    5. That the adoption of the budgets for inclusion in 2009-2019 Ten-year Plan be approved.

    5. ACE AND CITY PLANNING FEES AND CHARGES REPORT
    1. That it be noted that various legislation empowers Auckland City Council to recover the reasonable costs it incurs by providing certificates, authorities, approvals, permits or consents, or undertaking inspections or to apply fees or charges for certain functions and activities. Each year the Auckland City Council reviews those fees and charges that are not fixed by legislation to ensure they remain appropriate in light of any changes in the cost of providing the services.
    2. That it be noted the council's policy of full cost recovery of the private good element of development and regulatory services is through fees and charges.
    3. That it be noted that extensive work was done through the Regulatory Programme in significantly upgrading the council's regulatory systems and processes, and that the business case for this programme identified the need to fund this with a fees and charges increase once the programme went live. The programme is not fully operational and the level of fees and charges reflects the council's resolutions.
    4. That it be noted that the nature of a varied workload, with peaks above base consent volumes, will require some consultant services and that it is equitable to cover these additional costs in the standard fees and charges, rather than penalise the customer whose jobs need to be outsourced or subsidise this work from ratepayers.
    5. That the proposed increases to Auckland City Environment and City Planning's fees and charges be approved for consultation in the Ten Year Plan with the Chief Executive reporting to City Development Committee on the possibility of reducing the increases for low-value projects consent applications.

    6. PROPOSED RATES RELATED POLICIES FOR 2009/10
    1. That a 2.0 per cent overall citywide rates increase (excluding the CBD, mainstreet, and additional recycling targeted rates), which reflects council's rate of inflation reducing to 2.5 per cent, and the Chief Executive's agreement not to include any increase in the salary budget for 2009/10, be confirmed.
    2. That a change in the refuse collection targeted rate from $210 to $193 per service to fully fund the cost of the services be confirmed.
    3. That a change in the level of remission from $128 to $113 for an approved alternative rubbish service and changing the level of remission for an approved alternative recycling service from $71 to $75 be confirmed for 2009/10.
    4. That the level of the new targeted rate for each additional recycling service to be $75 be confirmed for 2009/10.
    5. That increasing the CBD targeted rate for residential ratepayers from $55 to $57, based on the lower inflation rate be confirmed.
    6. That a discount for early payment of rates of 1.5 per cent be confirmed for 2009/10, as this level reflects council's lower short-term borrowing rate for that year of 4 per cent (which in turn, is based on the projected official cash rate for 2009/10 at 4 per cent), and is fiscally neutral to council. It is equivalent to a pre-tax investment rate of 5.92 per cent for ratepayers, which is not normally available to individuals through small-scale retail deposits with banks.
    7. That the penalty for late payment of rates continues to be 10 per cent and is a reasonable disincentive to paying rates late be confirmed.
    8. That it be noted that the council budgets on the basis of projected income and any unpaid rates are funded by bank overdraft. Late payment of rates imposes an additional and unfair financial burden on the city's other ratepayers. In addition, there are administration costs to council for following up on late payment of rates. By mitigating late payments, council can better control these costs.
    9. That it be noted that all other decisions from the October 2008 and November 2008 Direction Setting meetings and any changes to them resulting from the decisions from this meeting will be included in the Draft 2009-2019 Ten-year Plan for consultation with the public.
    10. That the Uniform Annual General Charge (UAGC) be increased from $162 to $250 per separately used or inhabited part (SUIP) for 2009/10.

    7. DEVELOPMENT CONTRIBUTIONS POLICY 2009: PROPOSED DRAFT POLICY FOR CONSULTATION
    1. That the adoption of the attached draft Development Contribution Policy (subject to resolution (E) below) to be included in the council's draft Ten-year Plan, to be consulted on through April and May 2009 to support the possible adoption in June of a revised Development Contributions Policy as part of the Ten-year Plan 2009-2019 be approved.
    2. That it be noted the draft Development Contribution Policy should provide for development contributions to be charged for the transport activity throughout the whole city (and in particular that this charge be extended to apply to the Hauraki Gulf islands as it does for the isthmus), to both residential and non-residential developments.
    3. That it be noted that an approach to delivering equality of charges over time that is based on increasing the charges each year in line with the council's rate of inflation (except where it is required to do otherwise), thereby improves equity in the context of the currently planned capital programme.
    4. That it be agreed that funding growth-related capital costs through development contributions is considered to appropriately reflect the way that benefits are expected to accrue from, and the reasons for, the underlying capital programme, and to be consistent with the well-being of the community over time and known information on the views of the community.
    5. That Council delegates to the Chairperson of the Finance and Strategy Committee and the General Manager City Development the authority to make any changes to the draft Development Contribution Policy to be included in the draft Ten-year Plan as are needed to reflect other decisions at this meeting or any further legal advice that may be received.

    8. REFINEMENT TO TREASURY MANAGEMENT POLICY FOR 2009 - 2019 LTCCP
    1. That it be agreed to consult on the following adjustment to the Treasury Management Policy via the draft 2009-2019 Ten-year Plan:
      1. permitting borrowing to fund the impacts on ratepayer equity from payments associated with discovered liabilities, eg weathertightness payments, remediation of closed landfill and remediation of other contaminated sites.
    2. That it be noted that this change is in addition to the changes to the Treasury Management Policy endorsed for consultation at the 18 November 2008 Direction Setting meeting.
    3. That it be agreed that the draft Treasury Management Policy wording attached as Appendix I of the "Refinements to Treasury Management Policy for 2009 - 2019 LTCCP" report as set out and amended by resolution D be included in the draft Ten-year Plan, with authority to approve any minor wording changes delegated to the Chairperson of the Finance and Strategy Committee.
    4. That the new Sustainable Debt Policy requirements be that borrowing is permitted, subject to oversight by the treasury management steering group where:
      1. The liability concerned was not previously anticipated or is expected to be considerably higher than previously anticipated;
      2. Funding this operational expenditure from rates would place a significant burden on current ratepayers;
      3. Debt will assist in promoting intergenerational equity by spreading responsibility for funding these issues across generations; and
      4. Additionally, 60% of any debt should be repaid over 30 years on a straight line basis.
    5. That the policy of repaying 60% of debt over 30 years be reviewed during the next review of the Treasury Management Policy.

    9. MAINSTREET AND BUSINESS IMPROVEMENT DISTRICTS DRAFT BUDGET 2009-2010
    1. That it be approved that the following draft mainstreet and business improvement district (BID) budgets for inclusion in the 2009/10 Annual Plan and Budget, in order to continue supporting the improvement and success of Auckland city's business and town centres through the Mainstreet and BID programmes:
    Mainstreet / BID
    Proposed 2009/10
    Programme Budgets
    (excl GST)
    Avondale 100,000.00
    Blockhouse Bay 40,263.00
    Eden Valley 97,500.00
    Ellerslie 91,850.00
    Glen Innes 156,248.40
    Heart of the City 3,414,384.00
    Karangahape Road 250,981.00
    Mt Eden 68,035.27
    Newmarket 1,190,000.00
    Onehunga 367,416.00
    Otahuhu 370,000.00
    Panmure 366,025.00
    Parnell 281,416.00
    Ponsonby 220,000.00
    Remuera 224,170.00
    Rosebank 198,000.00
    St Heliers 131,890.00
    Total $7,568,179.67
    1. That it be noted that the boundaries of all Mainstreet and BID programmes remain the same as those for the 2008/09 financial year, except for Newmarket business association which by unanimous vote of the non-residential property ratepayers is expanding its boundary to better reflect and represent the Newmarket business precinct.
    2. That it be noted that the Newmarket BID area is extended to Carlton Gore and Khyber Pass roads and their side streets, George, Railway and Leek streets at the northern end of Broadway and an extension on the southern end to Alpers Ave and St Marks Rd. This change follows the Newmarket boundary extension poll concluded successfully in December 2008 with a 50 per cent voter turnout and a 91.4 per cent in favour of extending the BID area.
    3. That the boundary map for Newmarket business association be approved for 2009-2010 financial year.
    4. That officers actively encourage the extension of the mainstreets programmes across the city provided it is at minimal cost to ratepayers (i.e. a methodology be developed to recover the cost over time of establishing new mainstreets).

    10. FOLLOW UP: RATEPAYER DIFFERENTIALS AND DEFINITIONS
    1. That it be confirmed that there are no new recommended changes to the recommendations resolved at the November 2008 Direction Setting meeting, as basing the definition on actual use ensures equity so that properties that are used for the same purpose are rated on the same basis.
    2. That it be noted that council cannot continue to use the 2005 valuations for Great Barrier Island, as this is not permitted under the Rating Valuations Act and the Rating Valuations Rules.
    3. That it be recognised that there are equity issues around applying a minimum size requirement to vacant blocks and bush blocks (including those with a residence) and that the minimum size be reduced to 5 hectares that are proposed to be incorporated into the Farming and open space definition for the purpose of consultation with the public, and that the officers briefly report back on the implications of the minimum size being 4 or 5 hectares.
    4. That officers investigate the ability of council to guarantee the right of ratepayers to request a revaluation at no extra cost when the actions of council has a material effect on their existing valuation.

    11. PROPOSED CHANGES TO THE CAPITAL EXPENDITURE PROGRAMME
    1. That it be noted that officers have conducted a review of the capital expenditure programme for 2009/10 approved at the 18 November direction setting meeting. The review was required to present a budget that more accurately reflected the cost of the projects, timing of when they would be done and capacity of the organisation to deliver the full programme. This resulted in the 2009/10 programme being reduced by $20.3 million through expenditure being brought forward, deferred or reduced.
    2. That the following changes arising from the timing and feasibility review (refer Attachment 1 section B) be approved.
    3. That the following changes to council's operating expenditure budget be approved:
      1. The reduction to assumed operating budget savings for the Edge of $126,000 in 2009/10, $226,000 in 2010/11 and $326,000 for the remaining years of theTen-year Plan;
      2. The increase in the noise control budget of $200,000 for 2009/10 and $300,000 per annum thereafter; and
      3. The increase in the budget for the Tamaki transformation project, $200,000 per annum.
    4. That the following changes to council's capital expenditure programme be approved:
      1. The timing of the Marine Events Centre and the Te Wero bridge capital projects and the associated consequential OPEX over the plan period. The MEC will be completed in 2011 and the Bridge in 2016;
      2. The increase of $6.7 million in the capital expenditure to provide for the full restoration of the Pah Homestead;
      3. The timing of the Onehunga foreshore development project being brought forward by two years to coincide with the NZTA programme of work on SH 20;
      4. The $890,000 increase in the budget for the combined library and service centre on Waiheke Island;
      5. The changes to the timing of the open space development at Stonefields (Lunn Ave), the works to undertaken in 2009/10; and
      6. The additional $4.0 million required to develop sports fields in proposed park acquisitions.
    5. That the following be agreed to in relation to elephants at Auckland Zoo:
      1. That council confirm its desire to have a herd of elephants at Auckland Zoo; and
      2. That this will require substantial establishment funding totalling some $13 million over a number of years (with ongoing OPEX) and that this should be funded from national, regional and local government, local authorities, and private and commercial sources; and
      3. That provision be made in the 2009/10 year to conceptualise the campaign, noting that the council will be contributing and that the outcome of the Royal Commission will determine the future governance and related responsibilities of the Zoo; and that the Chief Executive report to the June Combined Committees meeting on an appropriate provision.
    1. That it be noted that the Combined Committees items 12, 13 and 14 being:
      • Item 12 - Statement of Proposal Ten-Year Plan 2009 - 2019
      • Item 13 - Marinas - Governance and User Representation
      • Item 14 - Statements of Proposal Relating to the Establishment of a Holding Company

    be referred to the 26 March 2009 Council meeting after the Audit Office review for adoption.

    CARRIED

    There being no further business the Chairperson declared the meeting closed at 4:03 pm.
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