finance and performance committee may 15 supplementary agenda

8/9/2019 Finance and Performance Committee May 15 Supplementary Agenda

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Note: The reports contained within this agenda are for consideration and should not be construed as Council policyunless and until adopted. Should Members require further information relating to any reports, please contactthe relevant manager, Chairperson or Deputy Chairperson.

I hereby give notice that an ordinary meeting of the Finance and Performance Committee will beheld on:

Date:Time:Meeting Room:Venue:

Thursday, 21 May 2015 9.30am Reception LoungeAuckland Town Hall301-305 Queen StreetAuckland

Finance and Performance Committee

OPEN ADDENDUM AGENDA

MEMBERSHIP

Chairperson Cr Penny Webster Deputy Chairperson Cr Ross Clow

Members Cr Anae Arthur Anae Cr Calum Penrose Cr Cameron Brewer Cr Dick Quax Mayor Len Brown, JP Cr Sharon Stewart, QSM Cr Dr Cathy Casey Member David Taipari Cr Bill Cashmore Member John Tamihere Cr Linda Cooper, JP Cr Sir John Walker, KNZM, CBE Cr Chris Darby Cr Wayne Walker Cr Alf Filipaina Cr John Watson Cr Hon Christine Fletcher, QSO Cr George Wood, CNZM Deputy Mayor Penny HulseCr Denise KrumCr Mike Lee

(Quorum 11 members)

Crispian FranklinDemocracy Advisor

18 May 2015

Contact Telephone: (09) 890 8114Email: [email protected]: www.aucklandcouncil.govt.nz


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Page 3

ITEM TABLE OF CONTENTS PAGE

11 Accelerated Transport Programme 5

18 Independent Māori Statutory Board - Proposed funding agreement for the2015/2016 financial year. 19


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Accelerated Transport Program me Page 5

Accelerated Transport Programme

File No.: CP2015/08812

Purpose1. To provide an overview of the Accelerated Transport Programme to be included in the Long-

term Plan 2015-2025 (LTP).

Executive Summary2. On 7 May 2015, the Budget Committee approved $523 million of additional transport capital

expenditure over the first three years of the LTP.

3. Auckland Council is funding $308 million of the additional $523 million capital expenditure,with the New Zealand Transport Agency (NZTA) funding approximately $185 million andaround $30 million from the Urban Cycleway Fund.

4. Capital expenditure for the Residential Growth Fund and Drury South was also approved.Over the three years this provides a further $152 million and is funded predominately out ofdevelopment contributions.

5. On 7 May, the Budget Committee also resolved that the Chief Executives of AucklandCouncil and Auckland Transport review the Transport Programme in view of the feedbackreceived during the consultation process and report back to the Finance and PerformanceCommittee. This report outlines the Accelerated Transport Programme and how this reflectsthe feedback received during LTP consultation.

6. In determining the Accelerated Transport Programme projects, which includes the additionalbudget, Auckland Transport has continued to use the prioritisation model presented to

council last year. This is to ensure, that at any given level of capital funding, the projects withthe highest benefits are included.

7. Aucklanders expressed a strong preference for more spend on public transport and activemodes. This has been reflected in the Accelerated Transport Programme with publictransport and walking and cycling significantly increasing from the expenditure proposed inthe Basic Transport Network.

8. The table below summarises the increases from the Basic Transport Network over the firstthree years, with the full project list included as Attachment B.

Area of capital expenditure

($ million)

BasicTransport

Network

AcceleratedTransport

Programme

Increase /(decrease)

Public transport $43 $213 $170

Walking and cycling $14 $124 $110

City Rail Link $395 $395 $0

Major projects $80 $128 $48

Roading $107 $137 $30

Renewals and replacements $612 $709 $97

Safety $8 $69 $61

Other $21 $21 $0

Seal extensions $3 $10 $7


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Local Board transport capital $32 $32 $0

Local residential growth fund $0 $108 $108

Drury South $0 $44 $44

Total $1,315 $1,990 $675

Recommendation/sThat the Finance and Performance Committee:

a) note the Accelerated Transport Programme and how it aligns to Long-term Plan2015-2025 consultation feedback preferences for public transport and walking andcycling.

CommentsBackground

9. A Basic Transport Network was included in the draft LTP for public consultation. To remainwithin the proposed rates increase, the Basic Transport Network provided for limited newinvestment in the first five years of the LTP.

10. The Auckland Plan Transport Network was also included in the LTP consultation. This largercapital programme included many more initiatives such as park ‘n rides and gradeseparation of rail level crossings to address growth and congestion across the city.

11. Following public consultation, there was clear support for a larger transport programme.

Prioritisation of the Accelerated Transport Programme

12. Prioritisation of the projects included as Attachment A, reflects the draft LTP programmeswhich were ranked using the prioritisation tool previously shared with council. Theprogrammes also reflect co-investment decisions by NZTA. These need to be taken intoaccount to maximise available co-investment funding and reflect their priorities. AMETI, EastWest Connections and urban cycleways are examples of NZTA priorities also reflected inthe final programme. Further changes in priority may impact NZTA funding.

13. The final programme also strongly aligns with public consultation feedback - including thatmore focus needs to be given to public transport and walking and cycling.


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LTP Feedback – areas of more and less focus

Accelerated Transport Programme summary

14. To a large extent, the Accelerated Transport Programme represents an acceleration of theprevious programme, rather than a new, different programme. It has also allowed a greaterinvestment in renewal of the rapidly growing asset base to avoid degradation over the nextthree years.

15. The additional investment in the first three years of the Accelerated Transport Programme:

i. Creates the ability to bring forward key strategic initiatives that under the Basic

Transport Network had been deferred until after 2020, including: city centre bus improvements – essential to ensure increasing numbers of buses

are able to circulate and terminate effectively in the city centre

bus-bus and bus-rail interchanges at Otahuhu, Manukau and Te Atatu –

essential items for the rollout of the PT New Network

Te Atatu Road corridor improvements – brought forward to align with completion

of NZTA’s Western Ring Route project

local road improvements in Flat Bush - brought forward to align with

development in this Special Housing Area.

ii. Allows for additional projects that were not in the Basic Transport Network, including:

Pukekohe interchange (and park ‘n ride) – critical for the successful rollout of theNew Network in the area

park ‘n rides at Papakura, Westgate and Silverdale

double decker bus enabling works

Tamaki Drive & Ngapipi intersection improvements

Newmarket Level Crossing.

iii. Allows additional funding to be directed to high priority programmes including:

increasing the budget for rural road seal extensions to $3.3 million per annum in

the first three years where additional funding is being provided

enhanced spend on renewals – ensuring no transport assets fall into very poorcondition

additional investment in transport safety programmes


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delivering the Auckland Cycle Network – which has had significant funding

increases in both the first three years and across the ten year period

public transport improvement programmes (bus lanes; bus stop; minor

improvements at ferry terminals and rail stations; provision of public transport

(PT) information and signage; and PT safety, security and amenity

improvements) - which has had funding increases in both the first three yearsand across the ten year period.

16. The capacity created by re-scoping and/or bringing forward some projects allows for thefollowing initiatives to be incorporated into years four to ten of the LTP:

North Western Busway - early works and/or route protection

safety improvements to some rail crossings (although note that funding is

insufficient to deliver grade separated solutions)

increased funding for regional public transport programmes

increased funding for the Walking and Cycling programme

increased funding for Network Operating Plan and Route Optimisation works

funding for further South-West Multi-modal Airport Rapid Transit route protection

investment in Intelligent Transport Systems

investment in PT technology initiatives.

Accelerated Transport Programme benefits and alignment with consultation feedback

17. The following tables summarise the benefits arising from the three year AcceleratedTransport Programme, and how the final programme aligns with the feedback receivedthrough consultation.

Public Transport Infrastructure

What getsdelivered underthe AcceleratedTransportProgramme

The following items, deferred beyond 2020 or not funded at all under theBasic Transport Network (BTN), are included within the AcceleratedTransport Programme’s first three years:

45 additional kilometres of bus lanes (including the Airport route,Ellerslie-Panmure Hwy, Pakuranga Rd, Ti Rakau Drive, parts of GreatSouth Rd and Great North Rd, Greenlane West, Mt Eden Rd,Manukau Rd and Remuera Rd)

double deckers enabled on 42 kiliometres of the frequent bus network

essential New Network infrastructure completed – interchanges at

Otahuhu, Manukau, Te Atatu, Pukekohe and Silverdale park ‘n ride extensions at Silverdale and Pukekohe, replacement

facilities at Glen Eden and Hobsonville

600 new and upgraded bus stops

$5.7 million invested in PT safety and security improvements (fencing,gating, CCTV etc.).

Outcomes fromadditional

AcceleratedTransportProgramme

investment

Faster PT and bus priority measures:

o increase PT boardings by 1.6 million per annum by 2018

o produce substantial travel time savings for existing and newusers.

Successful rollout of the integrated PT New Network – reducingduplication and increasing frequency across the network.

Network efficiency and cost recovery improvements – from increased


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demand and peak vehicle savings due to faster and more reliableservices.

Increased capacity from double deckers reduces overcrowding andallows for patronage growth in high demand corridors.

Improved safety and security from ongoing investment in CCTV andminor safety and security projects.

Alignment withconsultationfeedback

Increased investment improving public transport was one of the keythemes from public consultation. The proposed Accelerated TransportProgramme increases public transport investment, in both the first threeyears, and across the ten year period.

City Rail Link and other rail improvements


City Rail Link is included within the BTN, Auckland Plan TransportNetwork (APTN) and Accelerated Transport Programme – however itseffectiveness is limited due to a lack of funding to facilitate other networkimprovements (including additional EMUs to support increasedfrequencies, station upgrades, park ‘n ride enhancements, rail crossing

separations).The Accelerated Transport Programme incorporates the following, noneof which were provided for under the BTN:

Newmarket Level Crossing (Sarawia Street) eliminated by 2017

$26 million from 2020 to facilitate improvements to other rail levelcrossings

funding throughout LTP period for PT safety, security and amenityimprovements (to be spread across the bus, rail and ferry networks).


Accelerated

TransportProgrammeinvestment

Improved safety at rail level crossings and elsewhere on the network.

Removal of the Sarawia Street level crossing will help improve

network reliability and performance.


Increased investment improving public transport was one of the keythemes from public consultation. The proposed Accelerated TransportProgramme increases public transport investment, in both the first threeyears, and across the ten year period.

Walking and Cycling

What gets

delivered underthe AcceleratedTransportProgramme

The following items, deferred beyond 2020 or not funded at all under the

BTN, are included within the Accelerated Transport Programme’s firstthree years:

52.4 kilometres of the Auckland Cycle Network

a $3 million contribution towards local board walking and cyclinginitiatives (including greenways)

$5 million for new footpaths around the region.Outcomes fromadditional


investment

The proposed investment from 2015-18 will deliver:

2.5 million new cycle journeys per year once the new City Centrenetwork is complete – with estimated societal savings of $480 million

$40 million of safety benefits

$380 million in health and environmental benefits.


Increasing investment in walking and cycling infrastructure was one ofthe key themes from public consultation. The proposed AcceleratedTransport Programme increases walking and cycling investment, in both


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the first three years, and across the ten year period.

Facilitating regional growth


NORSGA, Flat Bush and Long Bay Glenvar Ridge Road projects fromthe BTN delivered by 2019.

A Growth Infrastructure Fund is established to provide dedicatedfunding to support pre-existing regional growth locations and thesuccessful delivery of Special Housing Areas.


AcceleratedTransportProgrammeinvestment

Special Housing Areas and pre-existing growth areas are supported. Targeted transport funding available to ensure Housing Accord

targets are met and that key growth locations are supported.


alignment withconsultationfeedback

Establishment of the Local Residential Growth Fund aligns with thefollowing recommendation from consultation:

Consider setting aside funding for new roading projects which are

necessary due to growth pressures.

Regional arterial and other roading improvements


The Accelerated Transport Programme first three years focuses on:

o committed projects (Albany Highway Upgrade),

o initiatives that integrate and optimise State Highway and otherrecent investments (e.g. Te Atatu Corridor delivered by 2017to support the Western Ring Route)

o route optimisation / network operating plan initiatives including30 minor network efficiency improvements by 2018 andimplementation of other efficiency interventions such asdynamic traffic lanes.



Reduced congestion and improved efficiency in moving people andgoods on the roading network.

Accelerated

TransportProgrammealignment withconsultationfeedback

Regional arterial improvements were often supported by benefitting local

communities, local boards, freight and other road user organisations, butopposed by other groups who sought a greater priority for public transportand walking and cycling improvements and a lower priority for roadingimprovements.

Road safety initiatives

What getsdelivered underthe AcceleratedTransport

Programme

Annually over the 2015/2016 to 2017/2018 period: 106 minorimprovement projects, three high-risk intersection or high-risk roadimprovements, 30 fatal crash investigations, 35 speed managementprojects, 8 crash reduction studies and 18 Safer Communities school

projects.Outcomes fromadditional

An annual 2.6% reduction in local road Deaths and Serious Injuries(DSI) for the three year 2015-18 period, providing the progress


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necessary to achieve both the Auckland Plan 2020 (410 DSI) and2014/2017 Statement of Intent local road safety targets.

Safer Communities schools initiative will contribute to increased safewalking and cycling trips in high-risk urban central and south schools,helping to achieve the 2014/2017 Statement of Intent walking &cycling target.

Statutory obligations for fatal crash investigations will be met.Customer and Police safety requests will also be met.

Speed management changes will meet existing requirements andnew national speed management regulations introduced from2018/2019 onwards.

AcceleratedTransportProgrammealignment withconsultationfeedback

The reduced spend on safety programmes outlined in the BTN unnervedmany public consultation submitters. The Accelerated TransportProgramme provides funding in all LTP years to deliver safety initiativesacross the region.

Major Projects – AMETI and East West Connections


Both of these initiatives are included within the BTN and AcceleratedTransport Programme, however under the BTN both projects areessentially paused until after 2020.


AcceleratedTransport

Programmeinvestment

AMETI

Momentum continued through 2015-2018 period, with Panmureroundabout replaced with signals and the Panmure-Pakurangabusway commenced. This brings forward the achievement of AMETI

benefits from the timeline outlined in the BTN. Budget provision in 2015/2016 is particularly low relative to current

AMETI investment levels and the corresponding APTN amount – butreflects Accelerated Transport Programme budget constraints in thatyear and other pressures on the available funds.

East West Connections

$1.5 million per annum allows East West Connections investigation,design and potentially some small improvements across the2015/2016 to 2018/2019 period. Construction scheduled in the2021/2022 to 2023/2024 period.

Budget provision across 2015/2016 to 2019/2020 period is low

relative to the APTN – and effectively means that the local roading,public transport and walking and cycling benefits from this project arenot delivered until after 2020.

AcceleratedTransportProgrammealignment withconsultationfeedback

Continued implementation of AMETI was supported through publicconsultation feedback.

East West Connections received support from freight, ports, business,neighbouring regional government, relevant local boards, and farmerrepresentatives, but was not supported by some other organisations(including Generation Zero and the Transport Blog) who believed thatthis project should be a Central Government initiative.

Renewals and Replacements

What getsdelivered under

BTN first three years = $612 million Accelerated Transport Programme first three years = $709 million


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the AcceleratedTransportProgrammeOutcomes fromadditional

Accelerated

TransportProgrammeinvestment

Full funding of the optimum renewals programme over the 2015/2016 -2017/2018 period. As a result by June 2018, 80% of transport assets willbe in good / very good condition, with no assets in very poor condition.

Under the BTN, only 75% of assets would be good/very good conditionand 4% in very poor condition by June 2018.

Beyond 2018, the transport renewals optimisation model forecastssignificant increases in renewal requirements which are not fundableunder the Accelerated Transport Programme’s capex envelope.


There were submitters who were concerned that renewal of existingassets needed to remain a priority.

Consideration

Local Board views and implications

18. A number of items of high priority to Local Boards have been introduced into the three year Accelerated Transport Programme. These include Te Atatu Road, bus/ rail interchanges inthe South, Pukekohe Station improvements and associated interchange and additional ruralroad resealing.

Māori impact statement

19. Consultation with Māori has been undertaken as part of the LTP.

Implementation20. There are no impediments to the timely implementation of the proposed programme. The

likely alignment with the Government’s Regional Land Transport Plan will allow funding forTransport Agency co-investment to begin immediately.

Attachments

No. Title Page

A Transport Capex Programme Comparisons - APTN, BTN and ATP 13

B Accelerated Transport Programme capital list 17

Signatories

Authors Robert Irvine - Financial Planning Manager CCOs

Authorisers Matthew Walker - General Manager Financial Plan Policy & Budgeting

Sue Tindal - Chief Financial Officer


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Independent Māori Statutory Board - Proposed funding agreement for the 2015/2016 financial year. Page 19

Independent Māori Statutory Board - Proposed funding agreement forthe 2015/2016 financial year.

File No.: CP2015/08815

Purpose1. To recommend the funding agreement for the Independent Māori Statutory Board (IMSB) for

the 2015/2016 financial year.

Executive Summary2. Auckland Council and the IMSB are required by statute to negotiate in good faith to “make a

funding agreement on the amount of money and the level of servicing that the council is toprovide to the board”.

3. Negotiations between council’s chief executive and the IMSB have resulted in a proposedfunding agreement for 2015/2016 within the budgets contained in the 2015-2025 Long-termPlan. The recommended total direct funding for IMSB for 2015/2016 is $2,829,500 and iswithin the parameters agreed between the chief executive and the political working partyestablished to oversee the negotiations.

4. This report recommends that the committee endorse the recommended funding agreementand agree that variations to the funding agreement, of no more than $50,000 in the financialyear and subject to budget being available, can be agreed between the chief executive ofthe IMSB and the chief executive of Auckland Council.

RecommendationsThat the Finance and Performance Committee:

a) Approve the recommended Independent Māori Statutory Board funding agreementfor the 2015/2016 financial year.

b) Note that following adoption of the recommended funding agreement by theGoverning Body the Independent Māori Statutory Board funding agreements for2015/2016 will be prepared for signing by the mayor and council’s chief executiveand the Independent Māori Statutory Board chair and chief executive.

c) Agree that variations to this funding agreement of no more than $50,000 in thefinancial year can be agreed between the chief executive of the Auckland Counciland the chief executive of the Independent Māori Statutory Board, subject to budget

being available to cover the variation.

CommentsKey components of the recommended funding envelope for 2015/16

5. Total direct funding for IMSB for 2015/2016 is $2,829,500.

6. The funding agreement includes provision for IMSB to monitor the development andimplementation of council’s Māori economic wellbeing strategy (one of five programmes ofaction under the Māori Responsiveness High Performance Council/Te Toa Takitini

framework) and scope the possible establishment of Māori Economic DevelopmentTaskforce or IMSB committee.


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7. The funding agreement includes provision for IMSB to engage specialist Māori expertise toassist council to progress certain key projects. The intention is to utilise this funding wherecouncil does not have the necessary in-house expertise.

8. The funding agreement shows a decrease in funding for the Treaty Audit process for thenext two years. This is consistent with IMSB’s agreed programme for undertaking the Treaty

Audit every three years.

9. A high level comparison with the 2014/2015 funding agreement is as follows:

2014/2015 2015/2016

Direct funding to IMSB $2,710,000 $2,829,500

Capex

(carried over from 2013/2014)

$50,000 -

Total $2,760,000 $2,829,500

Other components of the recommended funding agreement for 2015/201610. In addition to the direct funding, $131,500 will be held within council’s budget, with a n

agreed sign-off process between council and IMSB for that expenditure to ensure that thereis no duplication of effort between the council and the IMSB. This compares with $220,000for 2014/2015.

11. The following council departments provide support services to IMSB:

People and Capability; Information Services; Finance; Accounting; Procurement;Treasury; Property; Copy Centre/Mailroom; Records Management; CustomerServices; Democracy Services; Risk Management; Legal.

12. These support services will be listed in the funding agreement and are covered by a

separate service level agreement. There are no actual payments from IMSB to council forthe services and overheads are allocated through the annual plan process.

Variations to the agreement

13. The board or the council may initiate a review of the funding agreement by giving a written orelectronic notice to the other party stating the terms of the review [Auckland Council Act2009, Schedule 20, clause 2].

14. This report proposes that variations to the funding agreement of no more than $50,000 in thefinancial year can be agreed between the chief executive of the Auckland Council and thechief executive of the Independent Māori Statutory Board, subject to funding being available,without the need to formally negotiate an amendment to the agreement as envisaged by the

Act.

Consideration

Local board views and implications

15. Local boards have not been consulted as this has been a process of negotiation betweenthe Governing Body and the Independent Māori Statutory Board. However, the workresulting from the Independent Māori Statutory Board work programme and related councilwork programmes involve local boards.

Māori impact statement

16. The funding agreement supports the Independent Māori Statutory Board to give effect to itsstatutory purpose of promoting cultural, economic, environmental, and social issues ofsignificance for Māori in Tāmaki Makaurau; and ensuring that the council acts in accordancewith statutory provisions referring to the Treaty of Waitangi.


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Implementation17. Following adoption of the recommended funding envelope by the Governing Body and the

Independent Māori Statutory Board funding agreements will be prepared for signing by themayor and council’s chief executive and the Independent Māori Statutory Board chair andchief executive.

Attachments

No. Title Page

A Appendix A Statutory provisions relating to IMSB funding agreement 23

Signatories

Authors Deborah James - Executive Officer

Authorisers Grant Taylor - Governance Director

Sue Tindal - Chief Financial OfficerStephen Town - Chief Executive


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1. The Local Government (Auckland Council) Act 2009 established the IMSB with thefollowing purpose “to assist the Auckland Council to make decisions, performfunctions, and exercise powers by:

(a) promoting cultural, economic, environmental, and social issues of significance

for mana whenua groups and mataawaka of Tāmaki Makaurau; and (b) ensuring that the council acts in accordance with statutory provisions referring

to the Treaty of Waitangi”.

2. The IMSB also has certain statutory functions. These include:

a) Appointing a maximum of two persons to sit on each council committee thatdeals with the management and stewardship of natural and physical resources

b) Appointing a person or persons to other committees if so invited to do so bycouncil

c) Preparing, keeping up to date and prioritising a schedule of issues of

significance to mana whenua groups and mataawaka of Tāmaki Makauraud) Working with Auckland Council on the design and execution of documents and

processes to implement the council’s statutory responsibilities towards manawhenua groups and mataawaka of Tāmaki Makaurau.

3. The council has a number of responsibilities. These include:

e) Providing the board with information needed by the board to identify business ofthe council that relates to the board’s purpose

f) Consulting with the board on matters affecting mana whenua groups andmataawaka of Tāmaki Makaurau

g) Taking into account the board’s advice

h) Appointing an independent expert to inform it of appropriate fees for members ofthe board

i) Meeting the reasonable costs of the board’s operation.

4. Auckland Council and the IMSB are required each year to negotiate in good faith to“make a funding agreement on the amount of money and the level of servicing thatthe council is to provide to the board” [Schedule 2, clause 20].

5. The funding agreement must include, or make provision for:

the reasonable costs of IMSB’s operations and secretariat; IMSB seeking and obtaining advice and establishing committees;

IMSB’s work plan for the year;

IMSB board members’ fees and reasonable expenses.

6. The board or the Council may initiate a review of the funding agreement by giving awritten or electronic notice to the other party stating the terms of the review.

finance and performance committee may 15 supplementary agenda

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