Agenda of Council Controlled Organisation Oversight Committee

Terms of Reference

Responsibilities

The purpose of the committee is to:

· have a general overview and insight into the strategy, direction and priorities of all Council Controlled Organisations (CCO)

· set policy relating to CCO governance

· approve CCO Statements of Intent

· monitor performance of CCOs and other entities in which the council has an equity interest (such as CRLL, Tāmaki Regeneration Company and Haumaru Housing).

Key responsibilities include:

· monitoring the financial and non-financial performance targets, key performance indicators, and other measures of each CCO and the performance of each organisation

· advising the mayor on the content of the annual Letters of Expectations (LoE) to CCOs and Ports of Auckland Limited

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

· exercising relevant powers under Part 1 of the Port Companies Act 1988, which relate to the Statements of Corporate Intent for port companies

· 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

· approval of a work programme which includes a schedule of quarterly reporting of each CCO to balance reporting across the meetings.

Powers

(i) All powers necessary to perform the committee’s responsibilities.

Except:

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

(b) where the committee’s responsibility is limited to making a recommendation only

(ii) Power to establish subcommittees.

Auckland Plan Values

The Auckland Plan 2050 outlines a future that all Aucklanders can aspire to. The values of the Auckland Plan 2050 help us to understand what is important in that future:

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.

Staff

· 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.

1 Apologies

At the close of the agenda no apologies had 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 Council Controlled Organisation Oversight Committee:

a) confirm the ordinary minutes of its meeting, held on Thursday, 12 December 2019, 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.”

Council Controlled Organisation Oversight Committee

18 February 2020

Purpose, principles and protocols for liaison councillors for substantive council-controlled organisations

File No.: CP2019/21557

Te take mō te pūrongo

Purpose of the report

1. To approve the key purposes of the liaison councillor roles for substantive council-controlled organisations, along with key principles for how these roles will be undertaken.

Whakarāpopototanga matua

Executive summary

2. Following the 2019 local authority elections, the Mayor of Auckland proposed the creation of ‘liaison councillor’ roles to promote better relationships and information flows between council’s Governing Body and its council-controlled organisations (CCOs). This report:

· outlines the key purposes and principles of the roles and asks the Committee to approve these

· attaches a draft “Protocols” document for information, which will be finalised to reflect the decisions of the committee about the roles.

3. The key purposes of the liaison councillor roles are to develop trusting relationships with the CCOs to allow a better exchange of information. Liaison councillors can act as a key point of contact as specific issues arise, and provide advice on when issues are likely to be of high public interest. They can provide the CCO with Governing Body perspectives which may help board decision-making, while at the same time being able to provide Governing Body colleagues with information about the rationale and detail of board decisions.

4. The roles are supplementary to the primary role of the councillor in relation to CCOs, which is to hold the CCOs accountable for their performance. Liaison councillors are not to act as directors of the CCOs, and should not do anything in this role which may see them deemed as a director. At a basic level this means being able to speak if and when they attend board meetings, but not to vote.

5. To protect sensitive CCO information which may be obtained in the course of liaison councillor duties, confidentiality agreements will need to be signed by liaison councillors.

6. The role of liaison councillors is to provide perspectives which reflect those of the Governing Body as a whole, rather than their own personal perspectives, or those of any interest group. However, they are not in a position to provide authorisation for any action on behalf of Governing Body.

7. Regular reporting to the CCO Oversight Committee will be required of liaison councillors, so that Governing Body colleagues have an opportunity to understand the information and perspectives the liaison councillor has obtained. However, within the principles outlined above, the liaison councillors should develop the roles in a way which best suits the needs of the individual CCO to which they have been assigned; the scale, complexity and particular services delivered by that CCO; and their own capacity to spend time engaging with the CCO and its board.

8. Given that this is an innovation within the existing accountability framework, best practice will only emerge as the roles are implemented through 2020. We therefore recommend that the Chair and Deputy Chair of CCO Oversight Committee can both finalise the initial Protocols, but also make minor changes to the Protocols as required. A report on the liaison councillor roles and any formal changes required will be made by staff early in 2021 to the CCO Oversight Committee.

Ngā tūtohunga

Recommendation/s

That the Council Controlled Organisation Oversight Committee:

a) note the establishment of the role of council-controlled organisation liaison councillor, which carries with it a 1.10 remuneration ratio relative to a councillor without any additional responsibilities (Governing Body resolution GB/2019/1, 26 November 2019).

b) note that councillors have been allocated to each substantive council-controlled organisation by the Mayor

c) approve the key purposes of liaison councillors:

i) to develop a relationship with the board of directors of the assigned council-controlled organisation which allows an exchange of information in a trusting environment, while preserving the ability of the councillor to exercise their accountability role.

ii) to be a key point of contact for council-controlled organisation boards as specific issues arise.

iii) to provide council-controlled organisation boards with Governing Body perspectives and context to take account of in their decision-making.

iv) to assist council-controlled organisation boards with engaging with Governing Body on emerging strategic and delivery issues, particularly those with the potential for high public interest.

v) to keep other councillors and the Mayor of Auckland informed of some of the detail and rationale behind board decision-making.

vi) to assist with planning the programme of workshops between council-controlled organisations and Governing Body on strategic issues.

d) approve the key principles for the liaison councillor roles:

i) Liaison councillors are appointed by the Mayor of Auckland and report to the Council Controlled Organisation Oversight Committee.

ii) The liaison councillor role is ancillary to the primary councillor role as a member of the Governing Body, representing their community.

iii) Liaison councillors are not directors, and must not act in a way that they be deemed to be so.

iv) Liaison councillors are to represent the views of the Governing Body, and not their personal views or those of groups or other individuals who may promote those views to councillors in their ward representation role.

v) Liaison councillors will need to manage confidential information received from the council-controlled organisation in accordance with confidentiality agreements to be signed.

vi) Liaison councillors are able to develop the roles to fit the needs of individual council-controlled organisation within these general principles.

e) require liaison councillors to regularly report verbally to the Council Controlled Organisation Oversight Committee, or in writing if unavailable to attend in person, about activities undertaken in the role and issues arising.

f) require liaison councillors to sign confidentiality agreements to ensure appropriate handling of sensitive information.

g) direct that the role and purpose of liaison councillors be reviewed within 12 months, and a report provided about any changes required, no later than the second Council Controlled Organisation Oversight Committee meeting of 2021.

h) note the attached draft “Protocols relating to Liaison Councillor role”, which describes in detail the purposes, principles and guidance for undertaking the liaison councillor roles.

i) delegate authority to the Chair and Deputy Chair of the Council Controlled Organisation Oversight Committee to finalise the “Protocols relating to Liaison Councillor role” taking into account the resolutions of this committee and feedback from council-controlled organisation board chairs, and update the Protocols to reflect evolving practice, in line with the approved principles.

Horopaki

Context

9. Following the 2019 local authority elections, Auckland Council appointed an independent panel to undertake a review of the CCOs, in accordance with the approved terms of reference. This reflected the fact it had been ten years since amalgamation and establishment of the CCOs, and changed contexts in that time, including Auckland’s growth and social change bringing different demands for goods and services and expectations of civic engagement and democracy.

10. While formal accountability mechanisms are in place through the existing framework of legislation, and the role of CCOs is being examined in the formal review, as a first step the Mayor proposed the establishment of ‘liaison councillors’ to work on a more informal basis with CCOs.

Tātaritanga me ngā tohutohu

Analysis and advice

11. While the role of liaison councillor is likely to improve the information flow between council and the CCOs, the roles inherently raise a potential conflict: there are a number of issues which will require councillors to balance the liaison councillor role with the obligations of their role as a member of the Governing Body. For example, setting the strategic direction for CCOs, and monitoring their performance is a core function of the Governing Body. A too close relationship with the CCO may make it difficult to exercise this accountability role.

12. In order to address these issues and provide certainty to both the CCOs and for councillors undertaking the roles, staff have developed a set of draft Protocols, and these are attached for information.

13. The various issues covered by the Protocols are discussed below.

Scope and mandate of the roles

14. The roles are limited to the five substantive CCOs of Auckland Council: Auckland Transport, Watercare Services Limited, Panuku Development Auckland, Regional Facilities Auckland and Auckland Tourism, Events and Economic Development.

15. The roles are supplementary to the existing framework of accountability between council and the CCOs, with the accountability role of a councillor taking precedence over the liaison councillor role. This is important in two ways. Firstly, as noted above, councillors need to ensure they can maintain their ability to assess performance and hold CCOs to account. Secondly, in a practical sense there will be limits to the time which can be put into the liaison councillor role. For example, where there are clashes between board meetings and Governing Body meetings, a councillor would normally be expected to attend the council meeting.

16. Liaison councillors have been appointed by the Mayor of Auckland. The liaison councillors will report to the CCO Oversight Committee on a regular basis.

17. We recommend that the Chair and Deputy Chair of the CCO Oversight Committee be responsible to finalising the Protocols for the liaison councillor roles, and can update them over time to reflect emerging practice. However, where major changes need to be made to the roles which are not covered by the principles agreed in this report, staff will seek new resolutions from the CCO Oversight Committee.

Purpose of liaison councillor roles

18. In general, the key purpose of the roles is to develop a trusted relationship between the liaison councillor and the assigned CCO to allow an exchange of information which benefits both CCO board decision-making, and also gives council a greater insight into the strategic issues faced by the CCOs. In this regard, liaison councillors are responsible for representing known, agreed Governing Body perspectives on issues to the CCOs, rather than their own personal views or those of any particular group which is promoting their views to a councillor.

19. In addition, liaison councillors will be of particular value in helping CCOs understand when issues are likely to be of high public interest. Therefore, even when an issue is within the mandate of a CCO to decide, the advice of a liaison councillor may lead to opportunities to discuss such issues with Governing Body (such as in a workshop setting), in keeping with the ‘no surprises’ principle outlined in the CCO Accountability Policy of Auckland Council and the Governance Manual for Substantive CCOs.

20. Liaison councillors could also play a role in helping to keep other councillors and the Mayor informed of the rationale and detail behind CCO decision-making. One of the stated reasons for the creation of CCOs in the Auckland Council structure was to enable specialist knowledge to be applied to certain areas of service delivery. Liaison councillors will likely be in a position to explain when a decision is underpinned by such specialist expertise.

21. Finally, there is a regular series of workshops throughout the year between council and its CCOs. Liaison councillors will be in a key position to set the agendas for these workshops, taking into account both the emerging strategic issues which the CCOs would like to discuss with council, as well as the issues which are ‘top of mind’ for councillors.

Principles underlying liaison councillor roles

22. As noted above, we recommend that these roles are ancillary to that of the primary Governing Body councillor role of representing their communities and holding the CCOs to account. This will mean that liaison councillors should not act in any way that might see them deemed to be a director of the CCO, as this would confuse the lines of accountability. It would also expose them to the risks of being a director, in terms of being responsible for decisions.

23. Liaison councillors are also not acting in these roles as agents of Auckland Council, and cannot provide any authorisations for particular decisions. They are nonetheless to represent the views of the Governing Body, and not their personal views or those of groups or other individuals who may promote those views to councillors in their ward representation role.

24. An important element of the liaison councillor role will be to report to the CCO Oversight Committee on a regular basis about activities they have undertaken in these roles, and on any issues arising. This will also give other councillors a chance to ask questions. Where a councillor cannot attend the committee in person, a written update should be provided.

25. In contrast, the relationship of the liaison councillors with the CCOs themselves has the potential to develop in quite a range of different ways, reflecting the different size, complexity, services and business of each CCO. In keeping with the traditional role of the board chairs, it is anticipated that it will be largely up to the board chair, in discussion with the individual liaison councillors, to determine best how the liaison role develops.

26. The options for interaction include (but are not limited to):

· liaison councillors to attend the majority of board meetings

· attendance at board meetings for specific items, or a specific time set aside for liaison councillor attendance (such as a standing item)

· meetings with the board, or with the board chair, or other nominees, separate from formal board meetings

· no formal contact, but instead ad hoc interaction as issues arise.

Confidential information and conflicts of interest

27. The liaison councillor roles are designed to facilitate a flow of information between CCOs and council, additional to what already occurs. However, at times there will be information (such as board agendas and papers) and board discussions for which it may not be appropriate for the councillor to be party to. This may be because the information is not relevant to the functions and duties of the councillor, such as that it is commercially sensitive or operationally focussed. The CCO may withhold such information. However, there would be an expectation that the chair would consult with the liaison councillor on this.

28. There is also likely to be information which the liaison councillors will receive, but which needs to be kept confidential. To ensure such information is kept safe, it is recommended that liaison councillors sign a confidentiality agreement. A draft agreement will be prepared in collaboration between the CCOs and Auckland Council staff.

29. Conflicts of interest will also need to be managed. The expectation is that each liaison councillor will keep both Auckland Council and the relevant CCO information of any potential or actual conflicts of interest which may arise during their appointment as liaison councillor. These should be recorded in writing, along with the mechanisms for managing each conflict, and signed by both the liaison councillor and board chair.

Tauākī whakaaweawe āhuarangi

Climate impact statement

30. The liaison councillor proposal has no climate impacts.

Ngā whakaaweawe me ngā tirohanga a te rōpū Kaunihera

Council group impacts and views

31. Council staff have worked with staff from the substantive CCOs to develop the draft protocols attached to this report, and in particular to clarify the key purpose and potential benefits of the roles. Additionally, CCO staff have identified a range of issues which CCOs may face as part of the practical implementation of these roles, particularly around confidentiality of information and councillors becoming deemed directors.

32. As part of this consultation, CCO staff have been very positive about the potential opportunities for better communication through these liaison roles. They have contributed in a significantly positive manner to developing an understanding of how the roles may operate. As noted in the report, the intention in designing the Protocols for these roles is to leave a significant amount of discretion with board chairs and the liaison councillors to develop these roles in a way that suits both the individual CCOs and council.

Ngā whakaaweawe ā-rohe me ngā tirohanga a te poari ā-rohe

Local impacts and local board views

33. The liaison councillor roles are focussed on the relationship between Governing Body and the substantive CCOs, which operate strategically at a regional level. The views of local boards have not been sought in developing the Protocols for the roles.

Tauākī whakaaweawe Māori

Māori impact statement

34. The liaison councillor proposal has no particular impacts on Māori.

Ngā ritenga ā-pūtea

Financial implications

35. There are no financial implications from the establishment of the liaison councillor roles, except those already noted in the Governing Body remuneration pool resolutions of November 2019.

Ngā raru tūpono me ngā whakamaurutanga

Risks and mitigations

36. The liaison councillor roles carry with them a number of risks, which the draft protocols are designed to mitigate, and which have been discussed above.

37. One of the key risks is that liaison councillor roles may blur the line between councillors’ accountability and governance role, and relationship building purpose of the liaison role. For the CCOs, the corresponding risk is that councillors may stray into the decision-making process of the CCOs. This can be mitigated through the Protocols attached to this paper, which stress the primacy of the Governing Body councillor role. Guidance is given about how the roles can be shaped to ensure that board roles and councillor roles are kept separate. In addition, there will be confidentiality agreements in place to protect sensitive information, and conflict of interest registers to ensure conflicts are managed openly.

38. Another risk is that the public may misunderstand the roles as providing an advocacy channel. For example, individual councillors may be put under pressure by interest groups to represent their interests to individual boards, or to divulge information to them about board decision-making. When a liaison councillor (rightly) refuses to do so, the roles themselves may be seen as invalid or not useful. This risk can be mitigated by reference to the role description in the Protocols, which will be finalised by the Chair of the CCO Oversight Committee. In addition, council could consider issuing communications when the roles begin operating, explaining their purpose. Finally, if individual issues arise, council staff and other councillors can provide support to individual councillors to ensure that the roles are understood by the public.

39. A final risk is that the roles may not deliver anything useful in addition to the existing framework of accountability and relationships, or that the usefulness will vary from CCO to CCO depending on how the roles develop. This risk can be mitigated in three ways. Firstly, liaison councillors will be required to report (relatively informally) to CCO Oversight Committee on a regular basis, as to the activities which they have undertaken in the period since the previous meeting. Secondly, this report proposes the Chair and Deputy Chair of CCO Oversight Committee be given a delegation to amend the Protocols to reflect emerging practice. Finally, a more formal review of the liaison councillor role is proposed to be brought back to the CCO Oversight Committee no later than the second meeting of this committee in 2021. At that time the roles and their effectiveness can be reviewed, and changes made as appropriate.

Ngā koringa ā-muri

Next steps

40. Resolutions of this committee will be reflected in the attached draft Protocols document.

41. Establishment of liaison councillor roles is an innovation within the existing system of accountability. It has the potential to build better relationships of trust between CCOs and Auckland Council. However, it may take some time for best practice to be established and for the benefits to be realised. There is necessarily, therefore, much that cannot be anticipated and what will be crucial is for open conversations to take place about what is working and what is not, both for the liaison councillors and the councillor colleagues they are reporting to, and also for the CCOs. In this regard, council staff will have a crucial role in supporting the success of these roles, and liaising themselves at a staff level with colleagues in the CCOs.

Ngā tāpirihanga

Attachments

No.	Title	Page
a ⇩	Draft Protocols relating to the Liaison Councillor role	17

Ngā kaihaina

Signatories

Author	Edward Siddle - Principal Advisor
Authoriser	Alastair Cameron - Manager - CCO Governance & External Partnerships

Council Controlled Organisation Oversight Committee

18 February 2020

Council Controlled Organisation Review: Update Report

File No.: CP2020/00140

Te take mō te pūrongo

Purpose of the report

1. To provide an update on the Council Controlled Organisation (CCO) Review programme of work.

Whakarāpopototanga matua

Executive summary

2. Appointments to the Independent Panel were made in late December 2019, following approval of panel members at the 12 December, Governing Body meeting.

3. The panel met once late last year to establish ways of working, high level work programme and availability, what success would like and risks.

4. The chair of the panel has sent out introductory letters to the CCOs, stakeholders and Māori. Initial meetings have been scheduled with interested parties to explore issues with the CCO model, accountability and culture.

5. Community engagement is planned to occur alongside the Annual Budget 2020/2021 in February/March 2020. An engagement document has been developed and a summary document has been translated into 5 languages. A page on council’s website has been established providing information on the review, including timeframes, relevant documents and a contact for further information.

6. A confidential workshop has been scheduled for the Governing Body on 17 February 2020, to enable the Governing Body to provide input into the review.

Ngā tūtohunga

Recommendation/s

That the Council Controlled Organisation Oversight Committee:

a) receive the update report on the Council Controlled Organisation Review programme of work.

b) request that this report is circulated to all local boards for their information.

Horopaki

Context

7. The Governing Body approved the appointments to the Independent Panel on 12 December (Resolution GB/2019/149) and the Terms of Reference on 26 November 2019 (Resolution GB/2019/127).

8. As part of the reporting on the Annual Budget 2020/2021 – consultation material overview, it was noted that public engagement on the CCO review will occur alongside the Annual Budget consultation process.

Tātaritanga me ngā tohutohu

Analysis and advice

Panel meetings and programme

9. The Panel met for the first time on the 17 December 2019. At this meeting they discussed what success would look like, the issues to be considered, ways of working, risks and the work programme.

10. For the review to be successful, the panel felt that it needed to:

· be evidence based

· engage widely with all stakeholders at all stages

· have good project management

· maintain the panel’s independence and integrity

· provide pragmatic recommendations

· be a readable report

· be achieved with consensus and collaboration

CCO and CCO stakeholder engagement

11. The chair of the independent panel wrote introducing the panel and the review objectives to all CCO chairs and chief executives, councillors, local board chairs, the chief executive of IMSB and the co-chairs of the Mana Whenua Kaitiaki Forum on 20 December 2019.

12. The panel met briefly with the CCO chief executives and chairs on the 28 January 2020 to discuss the proposed review process and CCO engagement. Each CCO was asked to provide the panel with key stakeholders/customers that the panel should meet with.

13. Individual meetings have been set up with the CCO chief executives and board chairs over February and March 2020, and meetings are being set up with CCO stakeholders. These discussions will be guided by the three key areas of focus outlined in the Terms of Reference. These are: CCO model, roles and responsibilities, accountability and culture.

Elected member engagement

14. A confidential workshop has been scheduled for the Governing Body, 17 February 2020, to enable the Governing Body to provide views on the matters being considered as part of the review.

15. Leigh Auton will attend the Local Board Chairs Forum 10 February to hear their views on the areas of focus in the review. Staff are working with local board services on supporting local boards to provide formal feedback to the panel. This is likely to be through business meetings in April 2020.

Community engagement

16. Engagement with the community will run alongside the consultation on the Annual Budget 2020-2021. The public engagement period runs 21 February - 22 March 2020.

17. The panel will be attending four drop-in sessions:

· North: Wednesday 4 March 4pm-6pm (Birkenhead Library)

· South: Thursday 12 March 5pm-7pm (Manukau Library)

· West: Tuesday 17 March 5pm-7pm (Te Manawa community hub, Westgate)

· Central: Thursday 19 March 12pm-2pm (Pioneer Women’s Hall, Ellen Melville Centre)

18. Council staff, on behalf of the panel members, will provide support at the ‘Have your say’ events.

19. An engagement document has been drafted and approved by the Independent Panel, with the summary and feedback documents translated into 5 languages. These are online and written feedback can be provided on council’s ‘Have your say’ website.

20. A copy of these documents was provided to the mayor and councillors as part of the Annual Budget workshop with the Finance and Performance Committee on 5 February 2020 and to local board chairs at the Local Board Chairs Forum on 10 February 2020.

21. The feedback questions have been shaped with advice from a University of Auckland research specialist. Feedback is requested on what is working well and what are the main issues or areas for improvements for each CCO. No specific questions are asked about governance and accountability mechanisms. However, the questions do not preclude those with an interest in these areas with providing some commentary or views on these matters.

22. If required, the Governing Body will carry out public consultation as part of the 10-year Budget on any CCO change proposal.

23. A web page has been set up on the Auckland Council website, which provides high level information on the review, the timeframes and process, as well as the Chair’s updates and links to relevant reports.

24. An email address is also provided for members of the community to ask questions and seek further information.

25. The Independent Panel are due to provide a report on key issues, community stakeholder feedback in May 2020.

Tauākī whakaaweawe āhuarangi

Climate impact statement

26. There are no climate impacts from this progress report.

Ngā whakaaweawe me ngā tirohanga a te rōpū Kaunihera

Council group impacts and views

27. The independent panel is engaging with CCOs as part of their work programme.

Ngā whakaaweawe ā-rohe me ngā tirohanga a te poari ā-rohe

Local impacts and local board views

28. Local boards will have opportunities to express views on the CCOs and will adopt their formal feedback to the CCO Review Independent Panel in business meetings in March-April 2020.

Tauākī whakaaweawe Māori

Māori impact statement

29. Staff presented to the Mana Whenua Kaitiaki Forum on 19 December 2019. A meeting with the co-chairs of the Forum has been scheduled for 19 February 2020 to discuss Mana Whenua engagement and feedback.

30. Mana whenua are being invited to a drop-in session with Independent Panel members immediately preceding the Annual Budget mana whenua consultation session on 18 March 2020.

31. Staff are working with Te Waka Angamua on events with Mataawaka.

Ngā ritenga ā-pūtea

Financial implications

32. There are no financial implications from this report.

Ngā raru tūpono me ngā whakamaurutanga

Risks and mitigations

33. The table below sets out the risks and mitigations that have been identified.

Risk	Mitigation
Confusion around the combined approach with the Annual Budget	Clear and simple information explaining the position and what will be done with the information i.e. what decisions it will be used to inform and by whom
Community/stakeholder concern that they have limited ability to provide their feedback or talk to panel members directly	Communication that promotes opportunity for written submissions both online and at events. Web page dedicated to CCO Review with regular updates and information on review. Provision and communication of four drop in events with panel members. Letters inviting stakeholders to submit are being issued. Email contact address is provided on website for those seeking further information.
Managing community, stakeholder and political expectations around the CCO Review and what it will deliver	Regular progress and update reports are being provided to the CCO Oversight Committee and Local Boards, and workshops are planned with the Governing Body

Ngā koringa ā-muri

Next steps

34. The next CCO Review progress report will be provided to the March CCO Oversight Committee.

35. The Panel are due to provide a report on key issues, community stakeholder feedback in May and provide a final report, with recommendations, in July 2020.

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Attachments

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Signatories

Author	Claire Gomas - Principal Advisor
Authoriser	Alastair Cameron - Manager - CCO Governance & External Partnerships

No.	Title	Page
a ⇩	2020 Letter of Expectation for City Rail Link Limited	29
b ⇩	COMET Auckland Half-Yearly report 2019/20	33
c ⇩	Council Controlled Oversight Committee Forward Work Programme February 2020	45

Council Controlled Organisation Oversight Committee

18 February 2020

Kōmiti Aromātai Whakahaere Kaupapa Kei Raro I Te Maru O te Kaunihera / CCO Oversight Committee
Forward Work Programme 2020

This committee deals with the performance monitoring of CCOs and other entities in which the council has an equity interest. The committee are to have a general overview and insight into the strategy, direction and priorities of all CCOs, set policy relating to CCO governance and approve the CCO statements of intent.

The full terms of reference can be found here: Terms of Reference - Agreed 12 November 2019

Area of work and Lead Department	Reason for work	Committee role (decision and/or direction)	Expected timeframes Highlight the month(s) this is expected to come to committee in 2019/2020
Area of work and Lead Department	Reason for work	Committee role (decision and/or direction)	Jan	Feb	Mar	Apr	May	Jun	Jul	Aug	Sep	Oct	Nov	Dec
Letters of Expectation CCO Governance and External Partnerships.	Council issues annually a letter of expectations to each of its substantive CCOs to inform the development of the CCOs’ Statements of Intent.	Seeking committee approval of the content of draft 2020/21 letters of expectation. Progress to date: Approval of content for 2020/21 letters of expectation to substantive council-controlled organisations December 2019.												2020
Draft SOIs CCO Governance and External Partnerships.	Under legislation CCOs must prepare an annual statement of intent and provide a draft to its shareholders by 1 March. As shareholder council can provide comments on the drafts to CCOs.	Seeking committee approval of proposed shareholder comments on substantive and non-substantive CCO draft 2020/21 Statements of Intent.				2020
Final SOIs CCO Governance and External Partnerships.	Under legislation CCOs must deliver annually a final statement of intent to its shareholders by 30 June.	Seeking committee approval of final 2020/21 Statements of Intent from its substantive and non-substantive CCOs.								2020
Quarterly, Half-Year and Annual Reports CCO Governance and External Partnerships.	Under the LGA and LGACA the council must regularly undertake performance monitoring of the CCO to evaluate its contribution to meeting its objectives, and the desired results identified in the SOI.	Receive quarterly reports, receive and adopt half yearly and annual reports. The CCO will present to the CCO Oversight committee twice a year on their performance. Progress to date: First quarter reports received for substantive council-controlled organisations December 2019.			2020		2020				2020		2020
Legacy CCO Review CCO Governance and External Partnerships.	Auckland Council’s nine legacy CCOs have been operating in the same model since amalgamation, and it is timely to review their status as CCOs.	To agree a set of criteria that will guide a review of Auckland Council’s legacy CCOs and the sequence of their review.			2020
City Rail Link Limited (CRLL) CCO Governance and External Partnerships.	CRLL is a crown entity, jointly owned by the Crown and Council. CRLL has full governance, operation and financial responsibility for the city rail link. Under the Project Delivery Agreement CRLL provides Sponsors a monthly report. Sponsors can reasonably request additional reports or information.	CRLL reports quarterly as part of the group report to the Finance and Performance committee. CRLL will present to the CCO Oversight committee twice a year to discuss performance.			2020		2020				2020		2020
Ports of Auckland Limited (POAL) CCO Governance and External Partnerships.	POAL is owned by Auckland Council. It has an independent board of directors. A Memorandum of Understanding sets out the agreed framework in respect of the governance relationship between the two entities.	To have an annual meeting with POAL’s Board and Executive team to discuss strategic issues and business performance.
CCO ‘Scan the Horizon’ Workshops CCO Governance and External Partnerships	The Te Pae Tāwhiti: Scanning the Horizon workshops have been designed to ensure that the Governing Body and CCO Board members have the opportunity to meet to better understand each other's roles, priorities and ways of working. The focus is on discussing the medium to long term opportunities and challenges. At the CCO Oversight Committee workshop on 27 November 2019, a list of issues that the elected members would like to discuss with the CCOs was created. Staff will work through this list and develop a workshop schedule, which will be presented to the committee for approval in the February meeting.	The topics and sequencing of these workshops is being developed and will be agreed early in 2020. Progress to date: Workshops have been scheduled as follows – Auckland Tourism, Events and Economic Development February 2020 Auckland Transport March 2020 Watercare April 2020		2020
Liaison Councillor Updates CCO Governance and External Partnerships	Mayor Phil Goff has appointed a list of six CCO liaison councillors to attend the board meetings of the CCOs allocated to them, and report back to this committee.	To receive updates from the CCO Liaison Councillors. Progress to date: Guidance and protocols for the liaison councillor role will be reported in February 2020.		2020	2020	2020	2020	2020		2020	2020	2020	2020	2020
CCO Review –Progress Updates	As per the CCO Review: Terms of Reference (Agreed on by GB on 26/11/2019 – Res: GB/2019/127), an independent review panel will lead a review of Auckland Council’s Substantive Council-Controlled Organisations. Updates on the progress of this independent review panel will be presented to the CCO Oversight Committee as required.	To receive updates regarding the CCO Review. Progress to date: A programme update will be reported in February 2020		2020	2020	2020	2020	2020

Completed

Lead Department

Area of work

Committee Role

(decision and/or direction)

Decision

CCO AGM Resolutions

CCO Governance and External Partnerships

Under the Companies Act 1993, the CCOs and other relevant entities must hold an annual meeting of their shareholders.

Section 122(1) of the Companies Act and the constitutions also allow the company to forgo holding such a meeting if all the business required to be conducted at the meeting is done by written resolution.

To delegate the authority to Auckland Council’s chief executive to act as Auckland Council’s shareholder representative to execute a written resolution in lieu of an annual meeting.

Authority delegated to council’s chief executive to act as council’s shareholder representation to the substantive council-controlled organisations and also Tāmaki Regeneration Company and City Rail Link Limited and sign written resolutions December 2019

Chairperson	Deputy Mayor Cr Bill Cashmore
Deputy Chairperson	Cr Angela Dalton
Members	Cr Josephine Bartley	Cr Tracy Mulholland
	Cr Dr Cathy Casey	Cr Daniel Newman, JP
	Cr Fa’anana Efeso Collins	Cr Greg Sayers
	Cr Pippa Coom	Cr Desley Simpson, JP
	Cr Linda Cooper, JP	Cr Sharon Stewart, QSM
	Cr Chris Darby	IMSB Chair David Taipari
	Cr Alf Filipaina	Cr Wayne Walker
	Cr Christine Fletcher, QSO	Cr John Watson
	Mayor Hon Phil Goff, CNZM, JP	Cr Paul Young
	IMSB Member Hon Tau Henare
	Cr Shane Henderson
	Cr Richard Hills

Date	Item
16 December 2019	2020 Letter of Expectation for City Rail Link Limited (Attachment A)
January 2020	COMET Auckland Half-Yearly report 2019/20 (Attachment B)
February 2020	Council Controlled Organisation Oversight Committee Forward Work Programme February 2020 (Attachment C)

Author	Kalinda Gopal - Kaitohutohu Mana Whakahaere Matua / Senior Governance Advisor
Authoriser	Alastair Cameron - Manager - CCO Governance & External Partnerships