governing body - november 14 - addendum 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 Governing Body will be held on:

Date:Time:Meeting Room:Venue:

Thursday, 27 November 20149.30amReception LoungeAuckland Town Hall301-305 Queen StreetAuckland

Governing BodyOPEN ADDENDUM AGENDA

MEMBERSHIP

Mayor Len Brown, JPDeputy Mayor Penny HulseCouncillors Cr Anae Arthur Anae Cr Dick Quax

Cr Cameron Brewer Cr Sharon Stewart, QSMCr Dr Cathy Casey Cr Sir John Walker, KNZM, CBECr Bill Cashmore Cr Wayne WalkerCr Ross Clow Cr John WatsonCr Linda Cooper, JP Cr Penny WebsterCr Chris Darby Cr George Wood, CNZMCr Alf FilipainaCr Hon Christine Fletcher, QSOCr Denise KrumCr Mike LeeCr Calum Penrose

(Quorum 11 members)

Elaine StephensonDemocracy Advisor

21 November 2014

Contact Telephone: (09) 373 6328Email: [email protected]: www.aucklandcouncil.govt.nz


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ITEM TABLE OF CONTENTS PAGE

13 Adoption of Contributions Policy 5

14 Long-term Plan Performance Measures and Targets for Transport Theme 43


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Adoption of Contributions Policy Page 5

Adoption of Contributions Policy

File No.:CP2014/27345

Purpose1. This report recommends adoption for consultation of the draft Contributions policy 2015 and

related public consultation documentation.

Executive Summary2. 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 totiming, it is being dealt with now, together with the second report. This report provides anoverview 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 1December 2014. The consultation period will run to the same end point as the Long-termPlan 2015-2025 providing an opportunity for the contributions policy to be consideredalongside the other key funding matters. The draft Contributions Policy includes a scheduleof capital projects to be funded by development contributions and the cost allocationmethodology used to determine the allocation of investment costs to growth. A draft policyis included as attachment A.

4. The draft Contributions policy 2015 includes changes:

to funding areas, demand factors and definitions of development type agreed to underthe 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 expenditureprogram 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.

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

Recommendation/sThat the Governing Body:

a) adopt the draft Contributions Policy 2015 and the summary consultation document asattached to the agenda report.

b) delegate to the Chair and Chief Finance Officer the authority to make any minoreditorial amendments to the draft Contributions Policy 2015.


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Background6. 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 publicchanges to its contributions policy by 1 December 2014.

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

the proposal and the reasons for the proposal

an analysis of the reasonably practicable options, including the proposal, identifiedunder section 77(1)

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

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

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

DiscussionKey pol icy change decis ions

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

increasing the number of funding areas for stormwater and transport to better reflectthe 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 thedemand factor from 0.5 to 0.6.

Ann ual inf lat ion adjusted increase

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

New contr ibut ions charges

12. The full list of development contributions charges can be calculated using schedule 3 of thepolicy. Different charges are a reflection of development type, size and geographical fundingarea. 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 expenditureprogram agreed on 5 November. The prices may change based on final approval of thecapital expenditure program for the 2015-25 LTP following consultation.

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


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LGA changes

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

new purpose and principles for development contributions

changed definition of community infrastructure

restrictions on charging development contributions for reserves where a developmentis not residential in nature

introduction of a new objections process

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

Editor ial

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 July2015 assessed under new policy

removal of background discussion on role of the council, developers, existing ratepayers and incoming residents/businesses in reference to demand on growthinfrastructure

removal of funding area mapsavailable on council website.

ConsiderationLocal 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. Afurther briefing was provided on 20 October 2014, to which all local board members wereinvited. The 20 October 2014 briefing included analysis of options for the contributionspolicy.

19. Local boards considered their views on financial policy issues at workshops in Septemberand 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. Somelocal boards support expenditure of development contributions in the areas in which they arecollected.

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

Maori Impact Statement

22. Council does not hold information on the ethnicity of developers. The impact on Maori willbe 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 ofdevelopment contributions for qualifying Papakainga housing. Maori will also benefit fromthe lower demand factor proposed for Kaumatua housing from its inclusion in the retirementunit 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 alongsidethe Long-term Plan 2015-2025.

Implementation Issues25. Issues associated with implementing the options presented in this report have been included

for consideration.

Attachments

No. Title Page

A Draft Contributions Policy 2015 9

B Summary of Changes to Contributions Policy Changes 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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Long-term Plan Performance Measures and Targets for Transport Theme Page 44

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 beincluded in the documents that support consultation for the draft LTP which will be adoptedat 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 aregional level.

Maori Impact Statement

16. The process included sharing the development of the measures through Te Waka Angamua

and IMSB representatives.

Attachments

No. Title Page

A Performance measures and targets: Transport Theme 45

Signatories

Authors Robert Irvine - Financial Planning Manager CCOsTushar ShreyakarSenior Advisor CCOs

Authorisers Matthew Walker - Manager Financial Plan Policy and Budgeting

Stephen Town - Chief Executive


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governing body - november 14 - addendum agenda

Documents