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Upper Harbour
Local Board
08 April 2014
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Local
board input into the Council-Controlled Organisations current state assessment
File No.:
CP2014/06054
Purpose
1. This
report seeks input from the Upper Harbour Local Board into the first phase of
the Council-Controlled Organisations review - current state assessment.
Executive
Summary
2. Auckland
Council is undertaking a review of its seven substantive Council-Controlled Organisations (CCOs).
3. The first step
of this review consists of an assessment of the current state. Auckland
Council has prepared a preliminary assessment reviewing the experience of the
council and its CCOs over the last three years from a council perspective,
along with a discussion document to guide input.
4. Local boards
are invited to provide their input based on the discussion document. Feedback
will be reported back to the Governing Body and will inform the first phase of
the CCO review (current state assessment) as well as subsequent phases of the
review.
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Recommendation/s
That the Upper Harbour Local Board:
a) provide input
into the Council Controlled Organisations (CCO) review current state
assessment, or
b) delegate to a
member of the Upper Harbour Local Board to provide the board’s input into the
review by 30 April 2014.
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Discussion
5. Auckland
Council is undertaking a review of its substantive CCOs: Auckland Transport,
Auckland Council Property Ltd, Auckland Council Investments Ltd, Auckland
Waterfront Development Agency, Auckland Tourism Events and Economic
Development, Regional Facilities Auckland, and Waterfront Services Ltd.
6. The review aims
to determine whether there is a need to change the scope of activities and
functions within any CCO, the structures that the CCOs operate within, or any
accountability mechanisms between the CCOs and Auckland Council.
7. Governing body
members, local board chairs, the CCOs and the Independent Māori Statutory
Board (IMSB) were given the opportunity to provide feedback into the draft
Terms of Reference. Common themes amongst the feedback received included:
· the need to reduce duplication between Auckland Council and CCO
activities
· views as to where responsibility should lie for strategy/policy
development
· questions around effectiveness where an activity is split between
Auckland Council and one or more CCO
· the need to assess the impact of change on outcomes and delivery
· the need for effective communication and collaboration across
organisations
· the need to achieve constructive and positive engagement with
Aucklanders.
8. The feedback
contributed to the development of the Terms of Reference. The final version was
adopted by the Governing Body on 27 February 2014 and is presented in
Attachment A.
9. The Terms of
Reference specify the objectives of the review of CCOs as follows:
· To ensure the governance structures and accountability mechanisms:
o Facilitate appropriate alignment of the CCO operations with the
Auckland Plan and other council strategies and policies
o Provide an effective and efficient model of service delivery for
Auckland Council and Aucklanders
o Provide a sufficient level of political oversight and public
accountability.
· In addition, the review will seek to:
o Provide clarity of role and responsibilities e.g. development of
strategies, prioritisation of work programmes
o Eliminate duplication and gaps between the Auckland Council group
organisations
o Identify any opportunities for better integration of activities and
functions.
10. The intention is
to complete the review and be ready to implement agreed outcomes by
30 June 2015, which aligns the CCO review with the Long Term Plan
process. This timeline is extended from what was initially proposed to allow
for full participation and feedback at the appropriate points of the process.
Current state
assessment: preliminary findings
11. The first step
of the CCO review consists of an assessment of the current state. Auckland
Council has prepared a report reviewing the experience of the Council and its
CCOs over the last three years from a council perspective.
12. The report,
entitled “Auckland Council CCO Review, Current State Assessment (Council
Perspective)”, is presented in Attachment B. It is referred to as the CSA in
the rest of this report. The CSA is based on interviews with governing body
members and input from Auckland Council staff.
13. Key preliminary
findings in the CSA are as follows:
· CCOs were seen to deliver well for Auckland, and significant
progress has been made over the last three years.
· Some governing body members are considering fine tuning the model
while others expect more significant change.
· Views differ about the relative role of the Council and its CCOs in
developing mid-level strategies – i.e. strategies that bridge the gap between
the Auckland Plan and implementation plans.
· The majority view is that the formal accountability framework
between the Council and its CCOs needs to be simplified and streamlined, with
more rigorous debate when priorities are being communicated through the letter
of expectations.
· Informal accountability and communication is seen just as important
as the formal accountability framework.
· Feedback was received on the importance of integration within the
council group for effective operation, and of a strong culture of
collaboration, as well as other integration mechanisms.
14. The CCOs have
prepared a report to reflect their own perspective, with support from
Pricewaterhouse Coopers (PWC) and informed by interviews with CCO board members
and staff of each of the seven CCOs. The CCO perspective was sought in
recognition that the experience of the CCOs is different from that of council,
and to utilise the considerable
skills and experience within the CCOs to help inform the review.
15. The intention is
to augment the current state assessment with input from local boards.
Local board
feedback into Auckland Council’s discussion document
16. CCOs, as
delivery agents of Auckland Council, have the potential to have a significant
impact on positive outcomes for Auckland residents, ratepayers, and visitors.
Local boards have an interest in the extent to which CCOs can contribute to
their priorities, in projects being undertaken in their area, and in being kept
up-to-date on wider regional projects. While the CCOs are accountable to the
governing body as shareholder, they also have relationships with local boards
who share decision-making responsibilities.
17. Local boards’
views on the CCO current state will enrich the council perspective, and local
boards are invited to provide feedback based on the discussion document
prepared by Auckland Council. The discussion document, entitled “Auckland
Council CCOs, Current State, Council Perspective: Discussion and Questions for
Local Boards” provide a series of questions addressed to local boards and is
presented in Attachment C.
18. Local boards are
encouraged to:
· reflect on their experience working with
the CCOs over the last three years
· reflect on what worked well and what can
be improved
· provide feedback on the issues and
opportunities that the CCO review may address.
19. In providing
their feedback, local board members are invited to base their comments on
experience and to provide examples to illustrate the local board’s views.
20. Local board
input will inform the analysis of CCOs and related activities and functions as
part of the first phase of the CCO review (current state assessment) as well as
informing subsequent phases of the review.
Consideration
Local
Board Views
21. This report
seeks the views of the Upper Harbour Local Board, which will inform the CCO
review.
Maori
Impact Statement
22. The Independent
Māori Statutory Board (IMSB) and Te Waka Angamua will be involved at
several points in the process of reviewing the CCOs. They have provided input
into the development of the Terms of Reference and have been asked to provide
comments on the discussion document.
23. Consultation
with Māori, including mana whenua, mataawaka and iwi, would form part of
any public consultation should this occur during the third phase of the review.
Implementation
Issues
24. There are no
implementation issues at this stage of the CCO review.
Attachments
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No.
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Title
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Page
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aView
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Review of Auckland Council CCOs:
Terms of Reference
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9
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bView
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Auckland Council CCO Review, Current
State Assessment (Council Perspective)
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15
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cView
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Auckland Council CCOs, Current State,
Council Perspective: Discussion and Question for Local Boards
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31
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Signatories
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Authors
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Carole Canler -
Advisor, Local Board Services
Anna Bray - Policy and Planning Manager, Local Board Services
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Authorisers
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Karen Lyons - Manager Local Board Services
Eric Perry - Relationship Manager
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