I hereby give notice that an ordinary meeting of the Council Controlled Organisation Oversight Committee will be held on:

 

Date:

Time:

Meeting Room:

Venue:

 

Tuesday, 24 March 2020

10.00am

Room 1, Level 26
135 Albert St
Auckland

NOTE: This meeting was cancelled with the agreement of the Chairperson.

 

Kōmiti Aromātai Whakahaere Kaupapa Kei Raro I Te Maru O te Kaunihera / Council Controlled Organisation Oversight Committee

 

OPEN AGENDA

 

 

MEMBERSHIP

 

Chairperson

Deputy Mayor Cr Bill Cashmore

 

Deputy Chairperson

Cr Angela Dalton

 

Members

Cr Josephine Bartley

Cr Richard Hills

 

Cr Dr Cathy Casey

Cr Tracy Mulholland

 

Cr Fa’anana Efeso Collins

Cr Daniel Newman, JP

 

Cr Pippa Coom

Cr Greg Sayers

 

Cr Linda Cooper, JP

Cr Desley Simpson, JP

 

Cr Chris Darby

Cr Sharon Stewart, QSM

 

Cr Alf Filipaina

IMSB Chair David Taipari

 

Cr Christine Fletcher, QSO

Cr Wayne Walker

 

Mayor Hon Phil Goff, CNZM, JP

Cr John Watson

 

IMSB Member Hon Tau Henare

Cr Paul Young

 

Cr Shane Henderson

 

 

 

(Quorum 11 members)

 

Kalinda Gopal

Kaitohutohu Mana Whakahaere Matua /
Senior Governance Advisor

19 March 2020

Contact Telephone: 021723228

Email: kalinda.gopal@aucklandcouncil.govt.nz

Website: www.aucklandcouncil.govt.nz

 


 

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.

 

 

 


Council Controlled Organisation Oversight Committee

24 March 2020

 

ITEM   TABLE OF CONTENTS                                                                                         PAGE

1          Apologies                                                                                                                        7

2          Declaration of Interest                                                                                                   7

3          Confirmation of Minutes                                                                                               7

4          Petitions                                                                                                                          7  

5          Public Input                                                                                                                    7

6          Local Board Input                                                                                                          7

7          Extraordinary Business                                                                                                8

8          Council-Controlled Organisations Review: Progress Report                                  9

9          Council-controlled organisations quarterly reports ending 31 December 2019  13

10        Summary of Council Controlled Organisation Oversight Committee information items, including the forward work programme - 24 March 2020                            81  

11        Consideration of Extraordinary Items 

 

 


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 Tuesday, 18 February 2020, 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

24 March 2020

 

Council-Controlled Organisations Review: Progress Report

File No.: CP2020/03361

 

  

 

Te take mō te pūrongo

Purpose of the report

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

Whakarāpopototanga matua

Executive summary

2.       The CCO review covers Auckland Transport, Auckland Tourism, Events and Economic Development, Panuku Development Auckland, Regional Facilities Auckland and Watercare.  The overall objectives are to examine:

·   whether CCOs are an effective and efficient model for delivering services to the council and Aucklanders, and

·   whether the CCO decision-making model provides sufficient political oversight, public transparency and accountability.

3.       The panel have held more than 80 meetings in February and March 2020 to obtain a wide range of views on the matters being considered as part of the review. 

4.       Community engagement for the CCO review is occurring alongside the Annual Budget 2020/2021 in February/March 2020.

5.       The panel will attend this meeting to provide a verbal update.

 

Ngā tūtohunga

Recommendation/s

That the Council Controlled Organisation Oversight Committee:

a)      receive the Council-Controlled Organisations Review progress report.

 

 

Horopaki

Context

6.       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 (Resolution GB/2019/127).

Tātaritanga me ngā tohutohu

Analysis and advice

Panel meetings and programme

7.       The independent panel has been focused on obtaining a range of views about the issues forming the subject of the review over February and March.  The panel has held around 80 meetings to understand what is working well, as well as what is not.

8.       Time and cost considerations means the panel cannot meet with every person interested in the review, but they are confident that a mix of meetings, written feedback and workshops will ensure they get a good cross-section of views.

CCO and CCO stakeholder engagement

9.       The independent panel has held individual meetings with CCO chief executives and board chairs over February and March 2020 and has also met with over 30 external CCO stakeholders and 20 council managers that work with the CCOs. These discussions have been guided by the three key areas of focus outlined in the Terms of Reference: CCO model, roles and responsibilities, accountability and culture.

10.     The panel chair has written to resident and business groups, other CCO stakeholders and Auckland-based Members of Parliament informing them about the review and seeking input.

Elected member engagement

11.     A confidential workshop on 17 February 2020 enabled the Governing Body to provide views to the independent panel on the matters being considered as part of the review.  Follow up meetings with governing body members have been held as requested to further discuss issues.

12.     Leigh Auton attended the Local Board Chairs Forum on 10 February to hear views on the review’s areas of focus.  The independent panel attended the Chairs Forum on 9 March with the conversation focused on engagement, specifically the panel had asked the chairs to reflect on and ask their fellow local board members:

·   What does good engagement look like?

·   What are the principles for good engagement?

·   What can you do better to engage with the CCOs?

·   What could the CCOs do better?

·   What processes might change and how to achieve good engagement - for example, less paper and more dialogue?

13.     Local boards have been asked to provide formal feedback on the CCO review at their business meetings in March 2020.

Community engagement

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

15.     Panel members will be attending five public drop-in sessions:

·   4 March, 4pm-6pm (Birkenhead Library)

·   5 March, 3pm-4pm (Warkworth Town Hall)

·   12 March, 5pm-7pm (Manukau Library)

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

·   19 March, 12pm-2pm (Ellen Melville Centre).

16.     Council staff, on behalf of the panel members, are providing support on the CCO review at regional and local ‘Have your say’ events.

17.     Public engagement has been supported by an engagement document on the review, and summary and feedback documents translated into five written languages and NZ Sign Language. These have been made available online, at Have your Say Events and council service sites and libraries.  Written feedback can be provided on council’s ‘Have your say’ website.

18.     All public feedback will be made available to the independent panel.  Council’s insights team will analyse the public feedback and provide a summary report on the feedback to the panel.

19.     A web page has been set up, which provides high level information on the review, the timeframes and process, the drop in sessions, as well as the panel chair’s updates and links to relevant reports.

20.     An email address is also provided for members of the community to ask questions and seek further information: ccoreview@aucklandcouncil.govt.nz.

21.     The independent panel are due to provide a report on key issues and community and stakeholder feedback in May.

Tauākī whakaaweawe āhuarangi

Climate impact statement

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

Ngā whakaaweawe me ngā tirohanga a te rōpū Kaunihera

Council group impacts and views

23.     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

24.     Local boards have the opportunity to express views on the CCOs and have been requested to provide formal feedback to the CCO Review independent panel by 3 April 2020.

Tauākī whakaaweawe Māori

Māori impact statement

25.     Staff presented to the Mana Whenua Kaitiaki Forum on 19 December 2019. The panel met with one of the co-chairs of the Forum in February 2020 to discuss mana whenua engagement and feedback.

26.     Mana whenua have been invited to meet with the independent panel members immediately preceding the Annual Budget mana whenua consultation session on 18 March 2020. 

27.     A Māori advisor is being appointed to the independent panel.

28.     The panel has met with the Independent Māori Statutory Board. 

29.     Panel members spoke on Radio Waatea on 26 February to promote Māori interest and feedback on the CCO review. Material on the CCO review is being provided at mataawaka events for the Annual Budget and mataawaka organisations have been briefed on the review during the public engagement period. 

Ngā ritenga ā-pūtea

Financial implications

30.     There are no financial implications from this report.

Ngā raru tūpono me ngā whakamaurutanga

Risks and mitigations

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

Risk

Mitigation

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 five drop in events with panel members.

Letters inviting stakeholders to submit.

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 further workshops are planned with the Governing Body

Ngā koringa ā-muri

Next steps

32.     The next CCO Review progress report will be provided to the April 2020 CCO Oversight Committee.

33.     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.

 

Ngā tāpirihanga

Attachments

There are no attachments for this report.     

Ngā kaihaina

Signatories

Author

Claire Gomas - Principal Advisor

Authoriser

Alastair Cameron - Manager - CCO Governance & External Partnerships

 


Council Controlled Organisation Oversight Committee

24 March 2020

 

Council-controlled organisations quarterly reports ending 31 December 2019

File No.: CP2020/01651

 

  

 

Te take mō te pūrongo

Purpose of the report

1.       To receive a high-level summary of and comments on the Council-Controlled Organisations’ second quarter reports for 2019/2020.

Whakarāpopototanga matua

Executive summary

2.       Under Auckland Council’s accountability framework, each substantive Council-Controlled Organisation (CCO) must provide a quarterly report to the Council-Controlled Organisation Oversight committee. The reports for the second quarter of 2019/2020 are contained in Attachments A to E and are measured against the updated 10-year Budget.

3.       For this term of council, staff will provide this report alongside the CCOs’ quarterly reports which summarises the results and identifies any key issues on the financial and non-financial results in the quarterly reports. This report is not exhaustive, particularly in terms of noting the positive achievements of the CCOs during the quarter. 

4.       There has been solid capital progress with $1.2 billion of capital investment across the group over the six-month period. This is a $337 million increase compared to the same period last year.

5.       There has also been strong operating performance across the council group for the six-month period. Direct revenue was $66 million ahead of budget partly due to positive results from Watercare, and Auckland Transport. Direct expenditure was in-line with budget. Overall, there was a $61 million favorable result against the net direct operating budget.

6.       We note however that during the quarter New Zealand Transport Agency (NZTA) capital subsidies were below budget.  There is ongoing work with central government on accessing the agreed funding levels.

7.       Key aspects of the individual CCO second quarter reports are presented in the table below.

Auckland Transport

·  Auckland Transport had a favourable net operating result of $15m and delivered $345m capital expenditure against a budget of $378m.

·  All of its performance measures which have been measured are on track to be met.

ATEED

·   Auckland Tourism, Events and Economic Development (ATEED) had a favourable net direct expenditure result of $2.1m against budget.

·   A key highlight for the quarter is a new partnership between the Ministry of Social Development and ATEED which will capitalise on the social and economic development opportunities coming from screen sector growth in the Auckland region.

·   Performance indicators are tracking to meet year-end targets.

 

Panuku

·   Panuku Development Auckland (Panuku), including the commercial property portfolio, reported a $6m favourable net direct expenditure result. Capital expenditure delivered was $48m against a budget of $74m.

·   The capital programme is tracking behind budget primarily due to timing delays in the Transform Waterfront programme. These are forecast to be in line with budget at year end.

·   Performance indicators are tracking to targets.

RFA

·   Regional Facilities Auckland’s (RFA) net direct expenditure was $0.7m unfavourable against budget and forecasts suggest that revenue targets for the year will not be met. Capital delivery for the year to date was $43m against a budget of $44m.

·   Visitor numbers overall are not tracking to meet targets, though this is largely to do with the unavailability of the Viaduct Events Centre.  However, numbers at the Zoo and Art Gallery are also down.

Watercare

·   Watercare Services Limited’s (Watercare) net direct revenue was $17.6m favourable against budget and it delivered $272m capital expenditure against a budget of $317m.

·   Watercare is tracking to meet all targets for which it has provided information. It has not provided information about average water consumption due to the impact of inaccurate population estimates.  Given the current dry conditions, it would be useful to provide an indication of how water consumption and non-revenue water are tracking towards the annual targets.

 

Ngā tūtohunga

Recommendation/s

That the Council Controlled Organisation Oversight Committee:

a)      receive the second quarter reports of the substantive council-controlled organisations.

Horopaki

Context

8.       Under Auckland Council’s accountability framework, each substantive council-controlled organisation must provide a quarterly report to the Council-Controlled Organisation Oversight committee.

9.       Quarterly performance reports are required to:

·   summarise the CCO’s performance against the approved budget and agreed targets in the 10-year Budget and statement of intent

·   provide a forecast of the CCO’s performance for the end of the year

·   identify the cause of major variances

·   highlight major achievements for the quarter

·   signal any potential or developing issues.

10.     For this term of council, staff will provide this report alongside the CCOs’ quarterly reports which summarises the results and identifies any key issues on the financial and non-financial results in the quarterly reports.

11.     The report will not provide an exhaustive list of issues about the CCOs’ performance, and it does not address future issues.  It focuses more on issues of concern, rather than the achievements and activity highlights of the CCOs. The highlights are well documented in the quarterly reports and we expect the CCOs will also cover them verbally when they attend the CCO Oversight Committee. 

12.     The reports for the second quarter of 2019/2020 are contained in Attachment A to E and are measured against the updated 10-year Budget.

Tātaritanga me ngā tohutohu

Analysis and advice

Auckland Council Group

13.     There has been solid capital progress with $1.2 billion of capital investment across the group over the six-month period. This is a $337 million increase compared to the same period last year.

14.     There has also been strong operating performance for the six-month period. Direct revenue across the group was $66 million ahead of budget partly due to positive results from Watercare and Auckland Transport. Direct expenditure was in-line with budget. Overall, there was a $61 million favorable result against the net direct operating budget.

15.     The Auckland Council Group balance sheet remains healthy, with net debt currently at $9.2 billion. Total assets increased by $1.8 billion over the six-month period resulting in a net debt to total assets ratio of 17 per cent.

16.     The interim statutory accounts for Auckland Council Group for the six months to 31 December 2019 were released to the New Zealand Exchange (NZX) on 28 February 2020.

17.     NZTA capital subsidies were below budget. There is ongoing work with central government on accessing the agreed funding levels.

18.     Overall, the Auckland Council Group balance sheet remains healthy, with net debt currently at $9.2 billion, which is under the year-end budget of $9.6 billion. The net debt to total assets ratio was 17 per cent, which is on track against the year-end projection of 17 per cent.

19.     Detailed financial and non-financial performance of the Auckland Council Group and CCOs are provided in the quarterly reports.

Auckland Transport

Financial results

20.     Auckland Transport had a favourable net operating result of $15m for the year to date. This is mainly due to increased revenue from infringements, public transport fees and increased operating funding from NZTA for public transport services.

21.     Capital delivery was $345m against a budget of $378m. The variance is mainly due to timing of the Downtown Infrastructure Development Programme and delays in corridor improvement projects.

22.     NZTA capital funding remains a risk, with an unfavourable year to date variance to budget of $53m. This is due to the assumption that NZTA would fund 50% of Auckland Transport’s annual capital programme, rather than 50% over the 10-year period of the Auckland Transport Alignment Project (ATAP). Work is ongoing with central government to access the agreed funding levels.

 

 

Performance indicators and other issues

23.     All of Auckland Transport’s performance measures are on track to be achieved, where they have been measured so far in 2019/2020. 

24.     In the strategic focus areas, there are few areas showing delays. One relates to the Lincoln Road project, but this project has been recast and is due to be reconsidered early in 2020.  Gating of Middlemore and Papakura stations has also been partially delayed but will be completed before the middle of 2020. 

Auckland Tourism, Events and Economic Development

Financial results

25.     Auckland Tourism, Events and Economic Development (ATEED) had a favourable net direct expenditure result of $2.1m against budget. This is a result of higher than budgeted rental income due to the commencement of new leases, partially offset by some delayed expenditure due to event timing and project resourcing.

Performance indicators and other issues

26.     ATEED has a total of four 10-year Budget measures among seven statement of intent measures. For quarter two, six measures are on track to meet year-end targets and 1 measure has no results to date.

Panuku Development Auckland

Financial results

27.     Panuku Development Auckland (Panuku), including the commercial property portfolio it manages, reported a $6.1m favourable net direct expenditure result. This is mainly due to lower direct expenditure of $5m mainly as a result of project delivery staff vacancies and the timing of payments to consultants. Rental revenue is ahead of budget by $1.1m mainly due to receiving rent on properties that were expected to be vacant.

28.     Capital delivery was $48m against a budget of $74m. The underspend mainly relates to the Transform Waterfront programme due to timing delays for the Westhaven Promenade and 36th America’s Cup infrastructure delivery, and a delayed start to the pile mooring redevelopment project. Capex is forecast to be largely in line with budget at year end.

Performance indicators and other issues

29.     Panuku is currently $3.5m ahead of year to date budget from the properties it manages on behalf of Auckland Council. This is despite changing market conditions which means it is taking longer for Panuku to sell properties.

30.     Five out of 14 planned initiatives have been completed in the Transform and Unlock initiatives. Programmes are recorded as on track; further information on which of the 14 planned initiatives are still to be completed would be beneficial.

Regional Facilities Auckland (RFA)

Summary

31.     Regional Facilities Auckland’s (RFA) net direct expenditure was $0.7m unfavourable against budget mainly due to the cancellation of two concerts which impacted revenue.

32.     Capital delivery for the year to date was $43m against a budget of $44m. This reflects progress made on the Aotea Refurbishment and the South-East Asia Precinct at the zoo. 

Performance indicators and other issues

33.     RFA did not meet its targets for the number of people overall who experienced events at its venues.  It notes in its report that it would have exceeded this target had Viaduct Events Centre visitor (VEC) numbers been excluded from the target (the target was set prior to the decision to lease VEC to Team New Zealand). 

34.     However, we note that some of the subsidiary components of the visitor number target that are separately reported are also below targets – for the Zoo and the Art Gallery in particular.  It may be useful to ask RFA about this.

35.     The other major target not met is the percentage of operating costs funded through rates revenues.  An explanation for this is provided on page 8 of the RFA quarterly report. 

Watercare Services Limited

Financial results

36.     Watercare’s net direct revenue was $17.6m favourable against budget. This results from higher than budgeted revenue of $11.5m from infrastructure growth charges and $7.8m from higher actual usage volumes. Watercare also received $8.3m in assets from the Department of Corrections. The favourable revenue was partially offset by $10m increased expenditure, which includes higher water production (costs of due to historically low dam levels) and unplanned maintenance costs.

37.     Capital delivery was $272m against a budget of $317m. The underspend mainly relates to phasing of the Central Interceptor that was finalised after the budgets were set.

Performance indicators and other issues

38.     Watercare has reported 13 of its 16 statement of intent performance measures and is meeting targets on all of these.

39.     Its capital expenditure programme is largely on track, including the Central Interceptor. 

40.     The report notes that “demand for water continues to be high this summer, particularly on hot days which puts strain on our production capacity”. Watercare has been running a public awareness campaign about water consumption and taking actions to reduce non-revenue water.

41.     Watercare will not report on the performance measure on average consumption of drinking water until the end of the year due to concerns about the impact of inaccurate population estimates on the metric. While that is legitimate, given the current dry spell and high demand for water, it would be useful for Watercare to provide an indication of how water consumption and non-revenue water is tracking against annual targets at the committee meeting.

42.     The quarterly report highlights the risk around an additional water source for a growing Auckland, and alternative abstraction options Watercare has been exploring. The issue of future water supply for the long-term could be discussed at one of the two workshops between the Watercare board and the Governing Body during 2020.

Tauākī whakaaweawe āhuarangi

Climate impact statement

43.     The quarterly performance reports are a key tool to monitor the progress of each CCO in action on climate change, particularly following the council’s declaration of a climate emergency earlier in 2019.

44.     ATEED is facilitating and leading the development of a Climate Innovation Ecosystem/Hub and developing a climate change and sustainability action plan for the Destination division. ATEED is also working with Toitū Envirocare (formerly Enviromark Solutions) towards achieving Toitiū carbonreduce certification.

45.     Panuku has achieved New Zealand’s first Green five-star ratings for the Opanuku Precinct in Henderson and the Takapuna Masterplan, and is working with experts to ensure that climate adaption and resilience is a key consideration in the master planning and development of priority locations. It is about to pilot its tool to measure and reduce the carbon impact of new mixed-use and residential developments in the next quarter.

 

46.     In December 2019, RFA became a Toitū carbonreduce certified organisation, verifying that RFA’s operational greenhouse gas emissions for the financial year 2018-19 have been measured in accordance with ISO 14064-1:2006. Auckland Zoo achieved Toitū carbonzero certification for the fourth consecutive year. 

47.     Watercare has formed a Committee for Climate Action sub-committee to provide oversight of its mitigation and adaptation efforts and has commissioned NIWA to complete a sea-level rise reassessment of Helensville wastewater treatment plant. 

Ngā whakaaweawe me ngā tirohanga a te rōpū Kaunihera

Council group impacts and views

48.     The quarterly performance reports are a tool to monitor the performance of each CCO.  Each CCO will be present at the meeting of the CCO Oversight Committee and available to answer questions from committee members.

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

Local impacts and local board views

49.     The governance of CCOs is a responsibility for the Governing Body, which has delegated it to the CCO Oversight Committee. We have not sought the views of local boards on quarterly performance reporting, but the reports provide a summary of the engagement that CCOs have carried out with local boards during the first quarter.

50.     Specific CCOs (most notably Auckland Transport) have programmes in place to improve their engagement with local boards, so that outcomes from their work with local boards are enhanced and aligned with local board plans. This is reported on separately as part of the Governance Framework Review (GFR). A report on the GFR is next due in mid-2020. 

51.     Auckland Transport notes that it has been working closely with local boards on identifying projects to be delivered through the Community Safety Fund, and with specific boards on their ‘one local initiatives’ (OLIs).  Work with the Waiheke Local Board on its ten-year transport plan continues.

52.     ATEED held two Business Sustainability Kick Start group workshops in November 2019 (Albert-Eden and Waitemata).  The workshop topics included transport solutions, energy and carbon footprint.  Approximately 50 participants took part in the first PopUp Business School event in Manukau in early December 2019.

53.     Panuku has completed induction presentations with two thirds of the local boards and will be producing its six-monthly local board reports to go to business meetings beginning in March.

54.     Watercare has been working with Puketāpapa and Albert-Eden local boards to enable works for the Central Interceptor to start on time.

Tauākī whakaaweawe Māori

Māori impact statement

55.     The substantive CCOs have an important part to play in contributing to Māori outcomes. This represents a shift from the previous focus on output measures (such as whether a CCO had a Māori responsiveness plan) and is still being embedded as we move into the new political term.  We expect to have more to report on later in the financial year, as upcoming quarterly reports are provided to council. 

56.     Auckland Transport has a detailed description of the various activities it has undertaken to contribute towards Māori outcomes in its quarterly report. 

57.     ATEED’s updated Māori Responsiveness Plan was presented to the Board in November 2019.  The governance and management structure for Māori outcomes is in place, with the Head of Māori Outcomes and Relationships appointed and the Strategy Specialist (Māori Economy) role being recruited.  ATEED has also undertaken in-depth engagement with mana whenua for the feasibility study for a Māori Cultural Centre.

58.     Panuku has developed and test their Mana Whenua Panuku Outcomes Framework and will be ready to start implementing outcomes in the 2020/2021 financial year.

59.     RFA has created a new General Manager Kaupapa Māori role in order to develop further and deliver its Māori responsiveness plan.  Some highlights from the Auckland Art Gallery’s programme are also noted. 

Ngā ritenga ā-pūtea

Financial implications

60.     The financial results are discussed in the main body of the report.

Ngā raru tūpono me ngā whakamaurutanga

Risks and mitigations

61.     The quarterly reports provide a summary of the top risks and mitigations.  At the committee meeting on 24 March 2020, councillors have the opportunity to question the CCOs about how they are mitigating stated risks to reduce their likelihood and consequences. 

62.     This supports the work of the Audit and Risk Committee, which has an express mandate to monitor risks in the Auckland Council group. Each CCO reports quarterly to this committee on its risks, but the CCOs appear in person once a year only (on a rotating basis, one CCO per meeting) to discuss their overall risk profile with the Audit and Risk Committee.

Ngā koringa ā-muri

Next steps

63.     This report is for information purposes and no decisions are required.

 

Ngā tāpirihanga

Attachments

No.

Title

Page

a

Auckland Transport Quarter 2 report, 2019/2020

21

b

Auckland Tourism, Events and Economic Development Quarter 2 report, 2019/2020

35

c

Panuku Development Auckland Quarter 2 report, 2019/2020

43

d

Regional Facilities Auckland Quarter 2 report, 2019/2020

59

e

Watercare Quarter 2 report, 2019/2020

69

     

Ngā kaihaina

Signatories

Authors

Edward Siddle - Principal Advisor

Claire Gomas - Principal Advisor

Sarah Holdem - Principal Advisor

Sarah Johnstone-Smith - Principal Advisor

Authoriser

Alastair Cameron - Manager - CCO Governance & External Partnerships

 


Council Controlled Organisation Oversight Committee

24 March 2020

 

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24 March 2020

 

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24 March 2020

 

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24 March 2020

 

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24 March 2020

 

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Council Controlled Organisation Oversight Committee

24 March 2020

 

Summary of Council Controlled Organisation Oversight Committee information items, including the forward work programme - 24 March 2020

File No.: CP2020/01870

 

  

 

Te take mō te pūrongo

Purpose of the report

1.       To receive a summary and provide a public record of memoranda or briefing papers that may have been distributed to Council Controlled Organisation Oversight Committee members.

2.       To note the forward work programme included as Attachment B.

Whakarāpopototanga matua

Executive summary

3.       This is an information-only report which aims to provide greater visibility of information circulated to Council Controlled Organisation Oversight Committee members via memoranda/briefings or other means, where no decisions are required.

4.       The following items are attached:

Date

Item

18 February 2020

Scanning the Horizon Auckland Tourism, Events and Economic Development workshop documents (Attachment A)

March 2020

Council Controlled Organisation Oversight Committee Forward Work Programme March 2020 (Attachment B)

5.       Note that staff will not be present to answer questions about the items referred to in this summary. Committee members should direct any questions to the authors.

 

Ngā tūtohunga

Recommendation/s

That the Council Controlled Organisation Oversight Committee:

a)      receive the Summary of Council Controlled Organisation Oversight Committee information items – 24 March 2020.

b)      note the forward work programme included as Attachment B of the agenda report.

 

Ngā tāpirihanga

Attachments

No.

Title

Page

a

Scanning the Horizon Auckland Tourism, Events and Economic Development workshop documents

83

b

Council Controlled Organisation Oversight Committee Forward Work Programme March 2020

93

     

Ngā kaihaina

Signatories

Author

Kalinda  Gopal - Kaitohutohu Mana Whakahaere Matua / Senior Governance Advisor

Authoriser

Alastair Cameron - Manager - CCO Governance & External Partnerships

 


Council Controlled Organisation Oversight Committee

24 March 2020

 

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Council Controlled Organisation Oversight Committee

24 March 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 2020

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.

 

 

 

 

 

 

 

 

 

 

 

 

 

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.

 

 

 

 

 

 

 

 

 

 

 

 

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.

 

 

 

 

 

 

 

 

 

 

 

 

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 were received for substantive council-controlled organisations December 2019.

Second quarter reports for substantive council-controlled organisations will be reported in March 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.

 

 

 

 

 

 

 

 

 

 

 

 

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.

 

 

 

 

 

 

 

 

 

 

 

 

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.

 

Progress to date:

A Governing Body workshop has been scheduled March 2020.

 

 

 

 

 

 

 

 

 

 

 

 

 

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.

The topics and sequencing of these workshops is being developed and will be agreed early in 2020.

Progress to date:

The Auckland Tourism, Events and Economic Development was held in February 2020

Workshops have been scheduled as follows –

Auckland Transport March 2020

Watercare April 2020

Regional Facilities Auckland (to be confirmed)

Panuku Development Auckland June 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:

Principals and draft protocols for the liaison councillor role were agreed in February 2020

 

 

 

 

 

 

 

 

 

 

 

 

CCO Review –Progress Updates

As per the CCO Review: Terms of Reference (Agreed on by GB on 26/11/2019 – Resolution 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 was received in February 2020

Further progress updates will be reported to the committee monthly until July when the panel’s final report is expected.

 

 

 

 

 

 

 

 

 

 

 

 

                                                                                                                            

 

                                                                                                                                                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