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




Meeting Room:



Monday, 6 November 2017


Reception Lounge
Auckland Town Hall
301-305 Queen Street


Finance and Performance Committee









Cr Ross Clow


Deputy Chairperson

Cr Desley Simpson, JP



Cr Dr Cathy Casey

Cr Mike Lee


Deputy Mayor Bill Cashmore

Cr Daniel Newman, JP


Cr Fa’anana Efeso Collins

Cr Dick Quax


Cr Linda Cooper, JP

Cr Greg Sayers


Cr Chris Darby

Cr Sharon Stewart, QSM


Cr Alf Filipaina

IMSB Chair David Taipari


Cr Hon Christine Fletcher, QSO

Cr Sir John Walker, KNZM, CBE


Mayor Hon Phil Goff, CNZM, JP

Cr Wayne Walker


Cr Richard Hills

Cr John Watson


IMSB Member Terrence Hohneck



Cr Penny Hulse






(Quorum 11 members)




Mike Giddey

Governance Advisor


30 October 2017


Contact Telephone: (09) 890 8143

Email: mike.giddey@aucklandcouncil.govt.nz

Website: www.aucklandcouncil.govt.nz









The purpose of the Committee is to:

(a)  control and review expenditure across the Auckland Council Group to improve value for money

(b)  monitor the overall financial management and performance of the council parent organisation and Auckland Council Group

(c)  make financial decisions required outside of the annual budgeting processes


Key responsibilities include:


·         Advising and supporting the mayor on the development of the Long Term Plan (LTP) and Annual Plan (AP) for consideration by the Governing Body including:

o   Local Board agreements

o   Financial policy related to the LTP and AP

o   Setting of rates

o   Preparation of the consultation documentation and supporting information, and the consultation process, for the LTP and AP

·          Monitoring the operational and capital expenditure of the council parent organisation and Auckland Council Group, and inquiring into any material discrepancies from planned expenditure

·         Monitoring the financial and non-financial performance targets, key performance indicators, and other measures of the council parent organisation and each Council Controlled Organisation (CCO)  to inform the Committee’s judgement about the performance of each organisation

·         Advising the mayor on the content of the annual Letters of Expectations (LoE) to CCOs

·         Exercising relevant powers under Schedule 8 of the Local Government Act 2002, which relate to the Statements of Intent of CCOs

·         Exercising Auckland Council’s powers as a shareholder or given under a trust deed, including but not limited to modification of constitutions and/or trust deeds, granting shareholder approval of major transactions where required, exempting CCOs, and approving policies relating to CCO and CO governance

·         Approving the financial policy of the Council parent organisation

·         Overseeing and making decisions relating to an ongoing programme of service delivery reviews, as  required under section17A of the Local Government Act 2002

·         Establishing and managing a structured approach to the approval of non-budgeted expenditure (including grants, loans or guarantees) that reinforces value for money and an expectation of tight expenditure control

·         Write-offs

·         Acquisition and disposal of property, in accordance with the long term plan

·         Recommending the Annual Report to the Governing Body







(a)  All powers necessary to perform the committee’s responsibilities, including:

a.    approval of a submission to an external body

b.    establishment of working parties or steering groups.

(b)  The committee has the powers to perform the responsibilities of another committee, where it is necessary to make a decision prior to the next meeting of that other committee.

(c)  The committee does not have:

a.    the power to establish subcommittees

b.    powers that the Governing Body cannot delegate or has retained to itself (section 2).















































Exclusion of the public – who needs to leave the meeting


Members of the public


All members of the public must leave the meeting when the public are excluded unless a resolution is passed permitting a person to remain because their knowledge will assist the meeting.


Those who are not members of the public


General principles


·           Access to confidential information is managed on a “need to know” basis where access to the information is required in order for a person to perform their role.

·           Those who are not members of the meeting (see list below) must leave unless it is necessary for them to remain and hear the debate in order to perform their role.

·           Those who need to be present for one confidential item can remain only for that item and must leave the room for any other confidential items.

·           In any case of doubt, the ruling of the chairperson is final.


Members of the meeting


·           The members of the meeting remain (all Governing Body members if the meeting is a Governing Body meeting; all members of the committee if the meeting is a committee meeting).

·           However, standing orders require that a councillor who has a pecuniary conflict of interest leave the room.

·           All councillors have the right to attend any meeting of a committee and councillors who are not members of a committee may remain, subject to any limitations in standing orders.


Independent Māori Statutory Board


·           Members of the Independent Māori Statutory Board who are appointed members of the committee remain.

·           Independent Māori Statutory Board members and staff remain if this is necessary in order for them to perform their role.




·           All staff supporting the meeting (administrative, senior management) remain.

·           Other staff who need to because of their role may remain.


Local Board members


·           Local Board members who need to hear the matter being discussed in order to perform their role may remain.  This will usually be if the matter affects, or is relevant to, a particular Local Board area.


Council Controlled Organisations


·           Representatives of a Council Controlled Organisation can remain only if required to for discussion of a matter relevant to the Council Controlled Organisation.




Finance and Performance Committee

06 November 2017


ITEM   TABLE OF CONTENTS                                                                                        PAGE

1          Apologies                                                                                                                        9

2          Declaration of Interest                                                                                                   9

3          Confirmation of Minutes                                                                                               9

4          Petitions                                                                                                                          9

5          Public Input                                                                                                                    9

6          Local Board Input                                                                                                          9

7          Extraordinary Business                                                                                              10

8          Notices of Motion                                                                                                        10

9          Value for Money Section 17A Review Programme                                                  11

10        Consideration of Extraordinary Items 



1          Apologies


An apology from Cr S Stewart has been received.



2          Declaration of Interest


Members are reminded of the need to be vigilant to stand aside from decision making when a conflict arises between their role as a member and any private or other external interest they might have.



3          Confirmation of Minutes


That the Finance and Performance Committee:

a)         confirm the ordinary minutes of its meeting, held on Tuesday, 24 October 2017, including the confidential section, as a true and correct record.



4          Petitions


At the close of the agenda no requests to present petitions had been received.



5          Public Input


Standing Order 7.7 provides for Public Input.  Applications to speak must be made to the Governance Advisor, in writing, no later than one (1) clear working day prior to the meeting and must include the subject matter.  The meeting Chairperson has the discretion to decline any application that does not meet the requirements of Standing Orders.  A maximum of thirty (30) minutes is allocated to the period for public input with five (5) minutes speaking time for each speaker.


At the close of the agenda no requests for public input had been received.



6          Local Board Input


Standing Order 6.2 provides for Local Board Input.  The Chairperson (or nominee of that Chairperson) is entitled to speak for up to five (5) minutes during this time.  The Chairperson of the Local Board (or nominee of that Chairperson) shall wherever practical, give one (1) day’s notice of their wish to speak.  The meeting Chairperson has the discretion to decline any application that does not meet the requirements of Standing Orders.


This right is in addition to the right under Standing Order 6.1 to speak to matters on the agenda.


At the close of the agenda no requests for local board input had been received.



7          Extraordinary Business


Section 46A(7) of the Local Government Official Information and Meetings Act 1987 (as amended) states:


“An item that is not on the agenda for a meeting may be dealt with at that meeting if-


(a)        The local  authority by resolution so decides; and


(b)        The presiding member explains at the meeting, at a time when it is open to the public,-


(i)         The reason why the item is not on the agenda; and


(ii)        The reason why the discussion of the item cannot be delayed until a subsequent meeting.”


Section 46A(7A) of the Local Government Official Information and Meetings Act 1987 (as amended) states:


“Where an item is not on the agenda for a meeting,-


(a)        That item may be discussed at that meeting if-


(i)         That item is a minor matter relating to the general business of the local authority; and


(ii)        the presiding member explains at the beginning of the meeting, at a time when it is open to the public, that the item will be discussed at the meeting; but


(b)        no resolution, decision or recommendation may be made in respect of that item except to refer that item to a subsequent meeting of the local authority for further discussion.”



8          Notices of Motion


There were no notices of motion.


Finance and Performance Committee

06 November 2017


Value for Money Section 17A Review Programme


File No.: CP2017/22678





1.       To provide an overview of the findings and recommendations contained in the four completed value for money (s17A) review reports[1] namely the:

·   Three waters review

·   Domestic waste review

·   Organisational support: communications & engagement review

·   Economic development: Investment attraction & global partnerships review

2.       To seek approval from the Finance and Performance Committee of the recommendations contained in each of the four reports.

Executive summary

3.       In March 2017 (resolution number FIN/2017/23) the Finance & Performance Committee endorsed a value for money programme for the council group including approval to undertake the first four value for money (s17A) reviews as part of an indicative programme of thirty reviews planned to be undertaken over the next three years.

4.       The programme delivers on the requirement on local government, in s17A of the Local Government Act 2002, to review the cost-effectiveness (or value) of current arrangements including a consideration of options for the governance, funding, and delivery of infrastructure, services.

5.       The reviews take an evidence–based approach. This involves both a qualitative and quantitative analysis following a consistent value for money methodology developed specifically for the programme.  Each review takes between three to four months to complete.

6.       Views have been formed on evidence from three primary sources: empirical data, management interviews and literature. The management responsible for services under review is extensively involved in the reviews and receives draft reports at key review stages. For each review, the analytical work is undertaken by an internal review team within Finance with the assistance of subject matter experts with specialist industry or sector experience. The review reports are subject to independent reference panel input on matters of consistency, drafting, reasoning and content. The independent reference panel comprises Doug Martin, Miriam Dean Q.C. and John Leuchars.

7.       It is evident particularly in the Three Waters Value for Money (s17A) quantitative analysis that significant value for money has been delivered since the establishment of the council by bringing together wholesale and retail water and wastewater services and consolidating stormwater operations into a single council department. For domestic waste value has been achieved with demonstrable cost savings, growing rates of household waste diversion from landfill and high levels of customer satisfaction with domestic waste services.

8.       There is also a growing trend in cross-group planning and delivery where the group is actively and successfully working together collaboratively. This is particularly the case in procurement where collective go-to-market approaches are being successfully used.


9.       The review has struggled at times to see what money has been spent on a given outcome or objective and what value has been delivered. Group information is often comparing “apples with pears”, prepared on different bases and cannot be readily combined. Good quality information on performance and spending by outcome is an essential for accountability. There are still areas of significant expenditure where no performance measures have been published or where accountability for the measure sits is unclear. For example the community engagement performance measure and target is yet to be established. Performance measurement and target –setting for strategic services is an area which needs to be urgently addressed in developing the long term plan and the levels of service and associated performance targets.  

The four completed reviews all point to significant further strategic opportunities to achieve value for the council group within the four strands of social, environmental, cultural and economic wellbeing and within the three following areas of s17A areas of consideration:


·   Combining as a group to collectively plan and tackle cross organisational responses around reducing risk, procuring goods and services and agreeing common performance measurement frameworks where appropriate.

·   Developing an integrated public policy and strategy for managing water in its many forms and reviewing the fitness of the current operating model for managing water, wastewater and stormwater to meet the strategy’s objectives.

·   Rebalancing waste service resources towards influencing zero waste objectives in the fast-growing non-domestic waste streams to achieve greater waste reduction or diversion.


·   Improving business case development, benefit realisation and commercial and economic disciplines in investment decisions to better prioritise work, measure performance and link outcomes to funding.

·   Integrating asset, capital and procurement planning for large infrastructure work where the benefits of scale can be better realised.

·   Extending the use across the council group of supplier panels for shared categories of expenditure to achieve scale-based efficiencies.

Service delivery

·   Achieving greater engagement with Maori.

·   Greater use of performance or outcome based contracting with outsourced suppliers.

·   Combining service delivery (if the business case justifies it) for three waters maintenance and operations services.



That the Finance and Performance Committee:

a)      receive the Three Waters, Domestic Waste, Communications & Engagement and Investment Attraction & Global Partnerships Value for Money (s17A) reports.

b)      endorse and accept the recommendations contained in the following four Value for Money (s17A) reports:

i)        Three Waters

ii)       Domestic Waste

iii)      Communications & Engagement

iv)      Investment Attraction & Global Partnerships.

c)      approve that the Value for Money political oversight group monitors the progress of implementation of the recommendations contained in this report.


10.     In March 2017 (resolution number FIN/2017/23) the Finance and Performance Committee endorsed a value for money programme including the first four reviews. The programme delivers on the requirement on local government, in s17A of the Local Government Act 2002, to review the cost-effectiveness of current arrangements including a consideration of options for the governance, funding, and delivery of infrastructure, services.

11.     Subsequently, the Chair and Deputy Chair of the Committee approved the terms of reference of the three waters, domestic waste, communications & engagement (C&E) and the investment attraction and global partnership reviews in consultation with the Chair of the Environment and Community Committee, the Chair of the Planning Committee, the Chair of the Independent Maori Statutory Board, the Deputy Chair of the Audit and Risk Committee, the Chairs of the affected CCOs and the Mayoral Office.

12.     The purpose of each review is to identify strategic opportunities to improve value for money. The value propositions developed in each report provide an indication of the value that could be developed by undertaking the recommended actions. The propositions do not include costs, benefits, implementation plans or timings of benefits. They have been designed to inform council decisions whether to invest in more detailed investigation including business case development and consultation on options. The recommendations in each review have been developed as an integrated package which needs to be actioned collectively. The independent review panel has been concerned that the recommendations provide a clear path to action so that implementation progress can be clearly monitored. It is recommended that the political oversight group monitor implementation progress.

13.     The following commentary provides a summary of the improvement opportunities and recommendations for each review and the four full reports attached provide an evaluation of the current state, the option assessment and the review findings.

Three Waters Review

Key Improvement Opportunities

14.     Developing a Three Waters vision, policy, strategy and implementation plan. This requires clarity of accountabilities across the Three Waters value chain including public policy, strategy, asset management and combined demand management planning.

15.     Review the alignment of Watercare’s SOI and Healthy Waters performance targets, particularly around strengthening shared three-water value drivers and environmental water quality objectives.

16.     Examine the value of having an independent authority monitor and review whether planned prices or revenues are reasonable, with reference to planned capital and operating spending, given the growing size of what are two local government monopolies.

17.     Explore the value of consolidating all Three Waters regulatory functions into a single and unified accountability.

18.     Explore the opportunities for involvement of both mana whenua and mataawaka in developing the Three Waters vision, policy and implementation plan guided by the Mana whenua Sustainable Framework and the council’s Maori Responsiveness Framework.

19.     Evaluate the potential value in taking a Three Waters approach to strategic growth planning and providing development approvals for new developments (and redevelopments) requiring developers to fully exploit integrated Thee Waters planning to:

·   Reduce potable demand (rainwater tanks – recycling – water efficient appliances etc.)

·   reduce wastewater discharge from the site

·   reduce stormwater runoff from the site (total and peak flow) and improve water quality

·   Enhance amenity and ecological outcomes through water-sensitive urban design.

20.     Assess the value of using special purpose vehicles for collaborative projects between the entities, such as the work being done by the Western Isthmus Water Quality Improvement Programme. Given the combined size of the proposed asset spend ($1.7b), the opportunity is to build delivery capability, enable solutions that minimise the need to provide better project funding certainty with improved financial management and risk sharing.

21.     Assess the potential value in creating greater funding certainty for stormwater‘s asset management plan and greater transparency of service levels and future funding requirements including whether inter-generational equity is optimised

22.     Evaluate the potential value of achieving further efficiencies from shared procurement enabled by a joint Three Waters asset management plan, go-to-market approach and consolidating contracts for suppliers that are shared by Watercare and Healthy Waters.

23.     Explore the value of stormwater operations and maintenance being managed by Watercare, using a performance-based contracting approach to achieve further economies of scale from integrating service delivery

24.     Assess the value of consolidating and increasing the enforcement and compliance activities, including the rates of inspections across the three networks, the value of increasing enforcement action, and penalties for non-compliance.

25.     Evaluate the provision of shared capital project management and delivery services between Watercare and Healthy Waters.


26.     Initiate and produce a Three Waters Policy and Strategy, in conjunction with Watercare and all other relevant authorities that set out the vision and outcomes for the Three Waters, and have an associated fully costed asset management and funding plan. It is noted that Auckland Council has commenced the development of an Auckland Water strategy encompassing the Three Waters covered in this review along with marine water, ground water and natural water bodies.

27.     In conjunction with Watercare, identify Three Waters-related projects that will benefit from a joint approach and prepare a business case to establish the value of a single center of excellence organisation for joint capital project planning. Noting that the governance and funding option of a special purpose vehicle be evaluated to oversee the construction of the Western Isthmus Water Quality Improvement Programme, and associated detailed planning and delivery of stormwater and wastewater projects.

28.     In conjunction with Watercare (and Auckland Transport), immediately form a single procurement center of excellence which may be operated by Watercare or Auckland Council dependent on what organisation has the appropriate capacity and capability, to manage procurement for mandatory categories of spend and on the top ten shared suppliers and report back on progress by June 2018 .

29.     In conjunction with Watercare, prepare a business case evaluating the case for council performance-based contracting with Watercare to deliver the operation and maintenance of stormwater services and report back in progress by June 2018.

30.     To assist prepare the necessary reporting transparency and consistency  for pricing reviews:

·   Require both Watercare and Healthy Waters to submit and publish in each organisation’s next funding plan an explanation of the funding required delivering on the asset plan, projects and associated service levels, and how the proposed prices, rates components, and charges are calculated, including the impact on pricing of cost-efficiencies.

·   Require both Watercare and Healthy Waters to apply a harmonised reporting approach to asset condition assessments, planning and related data in their next asset management plans.

·   Encourage both Healthy Waters and Watercare Services to participate in the next and subsequent Water Services Association of Australia Annual Asset Management Benchmarking exercises.

31.     Working with Watercare and the relevant council departments evaluate the benefits of creating a one-stop-shop for Three Waters regulatory and compliance functions where all the Three Waters regulatory functions co-habit in a single customer service center environment by June 2018.

Once the Three Waters strategy has been completed:

32.     Assess the best operating model to plan and deliver Three Waters capital projects under the recommendation contained in paragraph 41.

33.     Have the procurement centre of excellence prepare an expanded category planning and shared supplier scope with three-year forecasts that consolidate go-to market approaches, joint contracting and co-sourcing to support the synergies from having a Three Waters asset management plan.

34.     Review the options in business operating models to best enable the delivery of the integrated strategy and the objectives and outcomes being sought and to revisit design principles, levels of service and key accountabilities.

35.     Pilot for the next asset management planning ((AMP) cycle, an economic regulation process by contracting an independent economic assessment of whether the asset management plans, costs and funding plans of the water organisations are appropriate, reasonable, and efficient. Noting whether the outcome justifies a regular cycle of pricing reviews and report the result. It is noted that Watercare are proposing engaging a UK consultancy specialising in utility operations to review their next Asset Management Plan and we encourage Auckland Council and Watercare to include Healthy Waters and to jointly agree the scope of any review.

36.     Review the current regulatory framework and operating model for Three Waters regulatory services, evaluating the benefits of consolidating the Three Waters regulatory functions including trade waste, environmental water quality, overflow standards, consent conditions and building standards

Summary of Potential Value

37.     The table below provides an indication of the value for each of the key improvement opportunities drawing on the detailed assessment of options and supporting assumptions detailed in the review report.


Domestic Waste Review

Key Improvement Opportunities

38.     Concentrate the next Waste Management and Minimisation Plan on the total waste stream. Mana whenua should be actively involved in developing plan.

39.     Strengthen the range of public policy tactics used by the council, such as greater use of all tools in the Solid Waste Bylaw and using the resource and building consenting processes more effectively, to minimise waste and grow the volume of waste diverted.

40.     Explore the value of re-balancing of domestic waste service resources toward the larger and growing non-domestic waste stream to achieve waste objectives.

41.     Evaluate greater commercialisation of waste management and minimisation services and outsourced delivery models, and other operating models, to reallocate risk and to use private sector initiative and capital to drive value. Improve the council’s understanding of the quantified value of the wider environmental (and social, economic and cultural) pay-off from avoiding landfill disposal, to then use in planning and evaluation of waste services.

42.     Advance the case for central government to adjust the landfill levy to increase the cost of disposal and encourage diversion, subject to work to understand the value to ratepayers in terms of wider environmental, health, social and economic impact.

43.     Review standard resource and building consent conditions with a view to strengthening requirements that consent holders have a waste management and minimisation plan that is consistent with the Zero Waste goal. Rigorously test the public’s and business appetite for further options to divert waste (domestic and non-domestic), given the increasing cost profile. Explore further opportunities to use MFE’s contestable Waste Minimisation Fund to fund waste minimisation services and encourage private sector support.

44.     Progress the opportunities presented when the current collection contracts expire in 2020. There is a plan to align contracts to city areas, and that point there is an opportunity to contract for consolidated, outcome-focused services.


45.     Prepare a plan of actions to advance the Zero Waste objective in the growing non-domestic waste segments and include it in the second Management and Minimisation Plan currently being developed for approval.

46.     Review the strategic case for the council owning and operating waste facilities/services, and prepare a business case which evaluates alternative options for achieving their domestic waste service and policy objectives, including selling non- strategic assets or using long-term lease arrangements, and report back on progress by March 2018.

47.     Immediately introduce a funding principle that no new waste management or minimisation service or trial is approved without it having:

·   First sought significant co-funding support from the contestable Government‘s Waste Minimisation Fund

·   A business case that shows benefits exceed costs by a predetermined margin

·   Consider the value of continuing the current community grants for waste initiatives, based on an evaluation of the impacts of grants, given the size of grants and compared to the administration costs

48.     Develop information and guidance, and protocols for advisory support to community organisations and businesses to help them apply to the contestable Government‘s Waste Minimisation Fund.

49.     Develop, in collaboration with relevant business groups, simple easy-to-use site waste management plans to support businesses to cost-effectively minimise their waste that goes to landfill, and report back on progress by March 2018.


50.     Within the next 12 months:

·   Develop, and then maintain, an economic evidence base that quantifies the wider environmental and other damages caused by landfill and whether these costs are already captured in market prices or covered by regulatory requirements, for use in business cases

·   Do market research to test with households and businesses on what they would be willing to pay or do to achieve additional reductions in waste going to landfill, for use in economic assessments

·   Rank all of the council’s existing and planned waste minimisation and diversion services or initiatives by their cost-effectiveness, to guide implementation priorities and test value-for-money on an ongoing basis

·   Require independent review of material business cases, to be undertaken by experts with economic or commercial expertise, as part of building internal economic and business capability.

·   Do further economic research to ascertain if the introduction of a landfill levy would result in benefits that justify the increase in household and business costs of disposing waste in landfill, and once this research has been done, confirm the council’s position on advocating or not for a higher landfill levy. Implement outcome-based contracting, to give waste collectors incentives to also pursue ambitious waste minimisation and diversion targets, such as through enabling innovative retail and advisory services to households and businesses, and report back on progress by May 2019, noting that work is underway to consolidate, bundle, and standardise the waste collection contracts when they are due to be renewed from 2020.

Summary of Value

51.     The table below provides an indication of the value for each of the key improvement opportunities drawing on the detailed assessment of options and supporting assumptions detailed in the review report.


Communications & Engagement Review

Key Improvement Opportunities

52.     There is value in the Group collectively developing a communications strategy to address common Group reputational and business continuity risks and issues where communications and channel coordination play a key role

53.     Improving the performance evaluation framework for major C&E expenditure will strengthen accountability and transparency for results. This requires better alignment of key performance metrics to prescribed communications and objectives to provide assurance that resources are being prioritised and money is being well spent.

54.     Introducing formal cost-efficiency plans drawn from public sector best practices with targets will improve cost effectiveness and efficiency disciplines and give impetus to delivering value for money objectives for this largely budget-constrained discretionary area of spend. Areas for focus include strengthening planning and performance evaluation, a group internal design studio service developing a shared ‘freelance” resource pool, considering the “lead agency” concept, growing revenues, developing and negotiating Group suppliers arrangements and shifting to low cost channels

55.     There are opportunities to realise savings from adopting a single contracting approach to shared suppliers, extending supplier panels for key advertising and marketing categories of expenditure, sharing internal design studio resources and creating a Group resource pool for specialist contractors

56.     Addressing the causes of low levels of iwi satisfaction in the council is of significant value. The engagement process, the identification of key issues and responses and an understanding of iwi needs is a first step in improving service effectiveness.


57.     Initiate a working party with the CCOs to develop a formal Group C&E strategy and plan that sets out the Group’s approach to communications matters of significance including:

·   addressing Group communications risks and mitigation actions where C&E services are critical to risk management and defining protocols

·   agreement on the shared Group C&E outcomes, objectives and channels and a supporting work plan

·   Group brand standards and supporting policy

·   Group procurement plan.

58.     Require organisations receiving council funding for C&E services to implement a formal cost-efficiency programme for the service in the next financial year to achieve a minimum 5 per cent per annum reduction in spend for the next three years, over and above any existing efficiency targets and based on the current expenditure funded by council rates.

59.     Develop a top down strategic planning process to drive the allocation of the council parent’s C&E budget with clear investment logic between the work activity and resources required to achieve the prescribed outcomes and objectives, and have a fully documented and integrated strategic plan in place for the new financial year FY18. For those organisations without an engagement plan, develop an annual Māori engagement plan to integrate with the communications strategies and plans to demonstrate the link with the Māori responsiveness framework. For the council, review the engagement model to ensure iwi liaison has an integrated and cohesive approach to support the council’s statutory and policy obligations. Report back on progress by June 2018.

60.     For the Group: consider introducing a common performance measurement and improve the effectiveness of the Māori engagement process by strengthening accountability for planning and delivery of strategic engagement, linked to each organisation’s strategic communications and engagement plan

61.     For those organisations without a consistent performance evaluation framework, develop a consistent performance evaluation and monitoring methodology and implementation plan for determining the return on investment for major campaigns and projects. Report back on progress by June 2018.

62.     Develop a single procurement centre of excellence to manage procurement for the Group communications spend category with a view to deliver increasing, consistent value across the Group while reducing the number of suppliers. Report back on progress by June 2018.

Summary of Value

63.     The table below provides an indication of the value for each of the key improvement opportunities drawing on the detailed assessment of options and supporting assumptions detailed in the review report.


Investment Attraction & Global Partnerships

Key Improvement Opportunities

64.     The partnership and investment attraction landscape is crowded with many local and central government agencies chasing deals within a complex web of relationships.

65.     There is an opportunity to improve clarity about the Auckland investment story roles of the agencies and a shared understanding of investment priorities and sequencing.

66.     While it will not be appropriate for all partnership and investment attraction services, some services may be candidates for cost recovery or user charges, as they deliver a direct private benefit to the investor or business opportunity.

67.     Big headline measures such as the number of deals and ‘Foreign Direct Investment attracted' are not sufficient measures of value for money or successful performance.

68.     Potential options to measure impact include post-implementation project evaluations, and customer and stakeholder satisfaction measures.




69.     Ask the Auckland Investment Office, ATEED, Panuku, Auckland Transport and any other Auckland agencies with significant investment attraction roles to develop a consolidated Auckland investment story to:

·   explain clearly to potential investors the respective roles and how they fit together

·   develop a shared understanding of Auckland’s overarching urban growth and infrastructure development plan to guide respective investment attraction and financing projects

70.     Investigate the business case for introducing fees for those investment attraction services that generate clear private benefits to the investors and businesses receiving the investment.

71.     Develop better measures of the impact of investment attraction and global partnership activities, such as:

·   results of project evaluations that compare outcomes against predetermined baselines or controls

·   analysis and indicators that show which groups and communities benefited

·   Tools like Net Promoter Score (used by NZTE) and in-depth interviews with clients and other interests to find out what value they think was added.


Local board views and implications

72.     The views of local boards have not been sought in relation to these recommendations.  If approved, engagement with local boards on the recommendations will occur.

Māori impact statement

73.     The context and recommendations of this report are potentially beneficial to Māori.  The Value for Money programme management has engaged with the Independent Māori Statutory Board on its recommendations. All reports and recommendations have been reviewed and consulted on with an independent Te Ao Māori adviser.  If the recommendations within the reports are approved, engagement with Māori on the relevant recommendations will occur throughout the implementation process.


74.     Should a resolution be obtained from the Finance and Performance Committee endorsing and accepting the reports, it is proposed that the Value for Money political oversight group will monitor progress with the implementation of the report’s recommendations.








Three Waters Terms of Reference



Three Waters Value for Money (s17A) Review Report 2017



Domestic Waste Terms of Reference



Domestic Waste Value for Money (s17A) Review Report 2017



Communications & Engagement Terms of Reference



Communications & Engagement Value for Money (s17A) Review Report 2017



Investment Attraction & Global Partnerships Terms of Reference



Investment Attraction & Global Partnerships Value for Money (s17A) Review Report 2017





Sally Garrett – Programme Manager, Value for Money


Christine Watson – Head of Financial Programmes

Kevin Ramsay – Acting Group Chief Financial Officer


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[1] The terms of reference and the four review reports are attached to this report.