I hereby give notice that an ordinary meeting of the Governing Body will be held on:

Date:
Time:
Meeting Room:
Venue:

Thursday, 27 November 2014

9.30am
Reception Lounge
Auckland Town Hall
301-305 Queen Street
Auckland

Governing Body
OPEN ADDENDUM AGENDA
MEMBERSHIP
Mayor
Deputy Mayor
Councillors

Len Brown, JP
Penny Hulse
Cr Anae Arthur Anae
Cr Cameron Brewer
Cr Dr Cathy Casey
Cr Bill Cashmore
Cr Ross Clow
Cr Linda Cooper, JP
Cr Chris Darby
Cr Alf Filipaina
Cr Hon Christine Fletcher, QSO
Cr Denise Krum
Cr Mike Lee
Cr Calum Penrose

Cr Dick Quax
Cr Sharon Stewart, QSM
Cr Sir John Walker, KNZM, CBE
Cr Wayne Walker
Cr John Watson
Cr Penny Webster
Cr George Wood, CNZM

(Quorum 11 members)
Elaine Stephenson
Democracy Advisor
21 November 2014
Contact Telephone: (09) 373 6328
Email: elaine.stephenson@aucklandcouncil.govt.nz
Website: www.aucklandcouncil.govt.nz

Note:

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

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27 November 2014
ITEM TABLE OF CONTENTS
13

Adoption of Contributions Policy

14

Long-term Plan Performance Measures and Targets for Transport Theme

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Item 13

Adoption of Contributions Policy

File No.: CP2014/27345

Purpose
1.

This report recommends adoption for consultation of the draft Contributions policy 2015 and
related public consultation documentation.

Executive Summary
2.

This is the second of two reports to the Governing Body. The first report had policy changes
and was intended to be dealt with at an earlier Budget Committee (5 November). Due to
timing, it is being dealt with now, together with the second report. This report provides an
overview of all other policy changes and attaches the draft policy for public consultation.

3.

The council is required to make publicly available a draft Contributions Policy by 1

December 2014. The consultation period will run to the same end point as the Long-term
Plan 2015-2025 providing an opportunity for the contributions policy to be considered
alongside the other key funding matters. The draft Contributions Policy includes a schedule
of capital projects to be funded by development contributions and the cost allocation
methodology used to determine the allocation of investment costs to growth. A draft policy
is included as attachment A.

4.

The draft Contributions policy 2015 includes changes:

5.

to funding areas, demand factors and definitions of development type agreed to under
the previous item on this agenda

to annually increase the development contribution charges by an inflation factor

to contributions charges based on the Long-term Plan 2015-2025 capital expenditure

program agreed to on 5 November

as a result of amendments to the contributions provisions of the Local Government Act

(LGA)

of an editorial nature to improve clarity.

This consultation must be supported by a document setting out the changes, the reasons for
the changes and alternatives that were considered. This must also be adopted by the
council. A draft consultation document is included as attachment B.

Recommendation/s
That the Governing Body:
a)

adopt the draft Contributions Policy 2015 and the summary consultation document as
attached to the agenda report.

b)

delegate to the Chair and Chief Finance Officer the authority to make any minor
editorial amendments to the draft Contributions Policy 2015.

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Background
6.

The council made initial amendments to its 2012 Contributions Policy in September 2014 as
required by the Local Government Act 2002 amendment Act 2014.

7.

The LGA 2002, as amended in 2014, requires the council to make available to the public
changes to its contributions policy by 1 December 2014.

8.

When consulting on changes to its Contributions policy section 82A of the LGA requires the
council to make the following publicly available:

9.

the proposal and the reasons for the proposal

an analysis of the reasonably practicable options, including the proposal, identified

under section 77(1)

if a plan or policy or similar document is proposed to be adopted, a draft of the

proposed plan, policy, or other document

if a plan or policy or similar document is proposed to be amended, details of the

proposed changes to the plan, policy, or other document.

For practical reasons, consultation on the contributions policy will be coordinated alongside
other LTP items. The details of the LTP consultation process will be available on the
Auckland Council website from the end of January 2015.

Discussion
Key policy change decisions
10.

The proposed policy includes the changes staff recommended in the previous report on this
agenda. These are:

increasing the number of funding areas for stormwater and transport to better reflect
the different infrastructure investment required in different parts of the region

setting residential development charges based on dwelling size as well as type

defining commercial accommodation units as residential accommodation units

including Kaumatua housing in the retirement unit development type

re-defining minor dwellings units as small ancillary dwellings and increasing the
demand factor from 0.5 to 0.6.

Annual inflation adjusted increase

11.

The draft policy also incorporates the councils 6 November decision to increase the
development contribution price each year by an inflation factor. This will be applied to the
price for each development type, by activity, by funding area.

New contributions charges

12.

The full list of development contributions charges can be calculated using schedule 3 of the
policy. Different charges are a reflection of development type, size and geographical funding
area. The average price for one HUE in the urban area is $19,055 in 2015/16.

13.

The draft development contribution price is a reflection of the draft capital expenditure
program agreed on 5 November. The prices may change based on final approval of the
capital expenditure program for the 2015-25 LTP following consultation.

14.

The price is also affected by amendments to the contributions provisions of the Local
Government Act discussed below.

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15.

16.

Item 13

LGA changes
The amendments to the Local Government Act require the council to respond to new
provisions through its draft policy and consult on those with the community. Key new
provisions include:

new purpose and principles for development contributions

changed definition of community infrastructure

restrictions on charging development contributions for reserves where a development

is not residential in nature

introduction of a new objections process

The policy reflects these changes through the policy changes proposed in the previous
report on this agenda, changes to the schedule of capital projects to be funded by
development contributions, as well as a new section describing the objections process.

Editorial
17.

Staff propose making editorial changes to the policy to improve its accessibility by a wider
audience and to reflect new LGA provisions. The main editorial changes include:

overview and purpose consolidated and abbreviated

transition provisions simplified - all applications for consents lodged on or after 1 July
2015 assessed under new policy

removal of background discussion on role of the council, developers, existing rate

payers and incoming residents/businesses in reference to demand on growth
infrastructure

removal of funding area maps available on council website.

Consideration
Local Board Views and Implications
18.

Two representatives of each local board were invited to a briefing on the financial policies,
including the contributions policy, for the Long-term Plan 2015-2025 on 18 August 2014. A
further briefing was provided on 20 October 2014, to which all local board members were
invited. The 20 October 2014 briefing included analysis of options for the contributions
policy.

19.

Local boards considered their views on financial policy issues at workshops in September
and October and during their formal October meetings.

20.

Many local boards support a contributions policy that leads to efficient land use and an
approach that sufficiently provides infrastructure for growth in the existing urban area. Some
local boards support expenditure of development contributions in the areas in which they are
collected.

21.

A more detailed report of local board views was considered by the Budget committee at their
meeting on 5 November 2014. This included the full text of their resolutions on financial
policy issues.

Maori Impact Statement

22.

Council does not hold information on the ethnicity of developers. The impact on Maori will
be similar to the impact on other residents and ratepayers.

23.

The council is developing a grants scheme which will offer funding equivalent to the cost of
development contributions for qualifying Papakainga housing. Maori will also benefit from
the lower demand factor proposed for Kaumatua housing from its inclusion in the retirement
unit category rather than the standard dwelling type.

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Significance
24.

Adoption of a contributions policy is a significant decision and will be consulted on alongside

the Long-term Plan 2015-2025.

Implementation Issues
25.

Issues associated with implementing the options presented in this report have been included
for consideration.

Attachments
No.

Title

Draft Contributions Policy 2015

Summary of Changes to Contributions Policy Changes

Page
9
37

Signatories
Authors

Andrew Duncan - Manager Financial Policy

Claes Sandstrom, Senior Advisor
Bobbi Parkinson, Principal Advisor

Authorisers

Matthew Walker - Manager Financial Planning, Policy and Budgeting

Stephen Town - Chief Executive

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Item 14

Long-term Plan Performance Measures and Targets for Transport

Theme
File No.: CP2014/27348

Purpose
1.

To agree to the level of service statements, performance measures and targets for each
group of activity included within the Transport Theme for the draft Long-term Plan 20152025 for the Basic Transport Network.

Executive Summary
2.

Auckland Transport have rationalised and improved the performance measures to be

included in supporting consultation documents for the draft Long-term Plan 2015-2025 (LTP)
to ensure they create a meaningful basis for accountability for the levels of service delivered.

3.

This follows direction that the group measures should be more succinct, measurable and
better support accountability.

4.

The key changes to the transport measures are:

i. inclusion of required Department of Internal Affairs measures
ii. aggregation of measures such as the individual public transport modes
iii. removal of measures where Auckland Transport is not directly accountable for
the outcomes.

5.

Auckland Transport Board reporting covering further detail on measures, including split of
public transport modes, is made publicly available on the Auckland Transport website.

6.

The targets are aligned to the funding for the Basic Transport Network.

7.

The level of service statement, measures and targets cover Public Transport, Roads and
Footpaths, and Parking and Enforcement activities under the Transport Theme.

Recommendation/s
That the Governing Body:
a)

agree the levels of service statements, performance measures and targets for each
group of activity contained within the Transport Theme for inclusion in the supporting
consultation documents for the draft Long-term Plan 2015-2025.

Comments
8.

As part of the development of the draft Long-term Plan 2015-2025, the Performance
Measure work-stream and Auckland Transport conducted an in-depth review of performance
measures. The process included sharing the development of the measures through subcommittees and engagement with IMSB representatives.

9.

This has resulted in a succinct set of community focused performance measures and
pragmatic targets for each group of activities, which are aligned to the Auckland Plan.

10.

Where a CCO was not directly accountable for the outcome of a measure, or there was
difficulty quantifying the measure, these have been excluded.

11.

The Department of Internal Affairs has outlined mandatory infrastructure performance

measures that are applicable to all councils. The specific transport measures have been
included.

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12.

The targets proposed align to funding for the Basic Transport Network.

13.

The agreed set of level of service statements, performance measures and targets will be
included in the documents that support consultation for the draft LTP which will be adopted
at the 18 December 2014 Governing Body meeting.

14.

Auckland Transport have aggregated measures at the LTP level. Detailed breakdown,
including public transport mode split, is publically available on Auckland Transports website.
This includes additional measures and statistics.

Consideration
Local Board Views and Implications
15.

The Transport Theme level of service statements, measures and targets are set at a
regional level.

Maori Impact Statement

16.

The process included sharing the development of the measures through Te Waka Angamua
and IMSB representatives.

Attachments
No.

Title

Performance measures and targets: Transport Theme

Page
45

Signatories
Authors

Robert Irvine - Financial Planning Manager CCOs

Tushar Shreyakar Senior Advisor CCOs

Authorisers

Matthew Walker - Manager Financial Plan Policy and Budgeting

Stephen Town - Chief Executive

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