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, 22 September 2020

10.00am

This meeting will proceed via Skype for Business.

Either a recording or written summary will be

available on the Auckland Council website

 

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 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

 

 

(Quorum 11 members)

 

 

Michelle Judge

Kaitohutohu Mana Whakahaere / Governance Advisor

17 September 2020

 

Contact Telephone: 0211950262

Email: michelle.judge@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

22 September 2020

 

ITEM   TABLE OF CONTENTS                                                                                         PAGE

1          Apologies                                                                                                                      11

2          Declaration of Interest                                                                                                 11

3          Confirmation of Minutes                                                                                             11

4          Petitions                                                                                                                        11  

5          Public Input                                                                                                                  11

6          Local Board Input                                                                                                        11

7          Extraordinary Business                                                                                              11

8          Council Controlled Organisation Oversight Committee's Forward Work Programme                                                                                                                                       13

9          Liaison councillors' updates                                                                                      21

10        Council-Controlled Organisations - Approval of statements of intent for 2020 - 2023                                                                                                                                       25  

11        Consideration of Extraordinary Items 

PUBLIC EXCLUDED

12        Procedural Motion to Exclude the Public                                                               299

C1       CONFIDENTIAL: Council-controlled Organisations - Quarterly reports ending 30 June 2020                                                                                                                    299  

 


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

22 September 2020

 

Council Controlled Organisation Oversight Committee's Forward Work Programme

File No.: CP2020/12210

 

  

Te take mō te pūrongo

Purpose of the report

1.       To approve the Council Controlled Organisation Oversight Committee’s forward work programme.

Whakarāpopototanga matua

Executive summary

2.       The forward work programme identifies areas of work where the Council Controlled Organisation Oversight Committee has to make a decision.  It is in line with the forward work programmes of all other committees.

3.       Projects are briefly described and identified as requiring either decision or direction.  Where possible, likely timeframes for the projects coming before the Council Controlled Organisation Oversight Committee have also been identified.

4.       The forward work programme will be updated and reported monthly for information as part of the summary of information report.

5.       Staff recommend that the forward work programme be reviewed on a six-monthly basis in December and July each year.

 

Ngā tūtohunga

Recommendation/s

That the Council Controlled Organisation Oversight Committee:

a)      approve the Council Controlled Organisation Oversight Committee’s forward work programme.

b)      agree that the Council Controlled Organisation Oversight Committee’s forward work programme be reported monthly for information and reviewed on a six-monthly basis in July and December each year.

 

 

Ngā tāpirihanga

Attachments

No.

Title

Page

a

Forward Work Programme

15

      

Ngā kaihaina

Signatories

Author

Michelle Judge - Kaitohutohu Mana Whakahaere / Governance Advisor

Authoriser

Alastair Cameron - Manager - CCO Governance & External Partnerships

 



Council Controlled Organisation Oversight Committee

22 September 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

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 received for substantive council-controlled organisations March 2020.

Third quarter reports were scheduled for June 2020; however this meeting was cancelled due to COVID-19.

 

 

 

 

 

 

 

 

 

 

 

 

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.

 

 

 

 

 

 

 

 

 

 

 

 

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.

 

Future of these workshops being considered as part of CCO Review.

 

Progress to date:

Workshops have been held as follows –

ATEED - February 2020

Auckland Transport - March 2020

Watercare - July 2020 (Governing Body workshop)

Panuku Development Ltd – TBC

Regional Facilities Auckland – TBC

 

 

 

 

 

 

 

 

 

 

 

 

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

CCO Governance and External Partnerships

As per the CCO Review: Terms of Reference (Agreed on by GB on 26/11/2019 – Res: GB/2019/127), an independent review panel conducted a review of Auckland Council’s Substantive Council-Controlled Organisations.

The recommendations from the CCO Review report were agreed on by GB on 27/08/2020 (Resolution Number: GB/2020/89).

It was agreed that that the implementation team report on the programme and proposed approach timing to the CCO Oversight Committee within three months and that progress reports on the implementation of the programme are provided to the CCO Oversight Committee at 6-monthly intervals.

To receive updates on the implementation and progression of the 64 summary recommendations of the CCO Review

An implementation workshop will take place in October.

The work programme will be presented to the committee for approval in November.

 

Progress to date:

A programme update was received in February 2020

The CCO Review was received by the Governing Body in August 2020.

 

 

 

 

 

 

 

 

 

 

 

 

Merged Entity Draft SOI

CCO Governance and External Partnerships

As agreed at Governing Body on 27/08/2020, the Oversight committee are to approve a Statement of Intent for the merged entity (resulting from the amalgamation of RFA and ATEED) covering the period 1 December 2020 to 30 June 2021. 

(Resolution number: GB/2020/90)

This will include the consolidation of the current performance measurement framework and budgets for ATEED and RFAL.

To approve a draft statement of intent for the merged entity resulting out of the amalgamation covering the period 1 December 2020 to 30 June 2021

The following workshop is planned:

The draft SOI will be presented to the committee in October.

 

 

 

 

 

 

 

 

 

 

 

 

Merged Entity Final SOI

CCO Governance and External Partnerships

As agreed at Governing Body on 27/08/2020, the Oversight committee are to approve a Statement of Intent for the merged entity (resulting from the amalgamation of RFA and ATEED) covering the period 1 December 2020 to 30 June 2021. 

(Resolution number: GB/2020/90)

This will include the consolidation of the current performance measurement framework and budgets for ATEED and RFAL.

To approve a statement of intent for the merged entity resulting out of the amalgamation covering the period 1 December 2020 to 30 June 2021

 

The following workshop is planned:

The final SOI will be presented to the committee in November.

 

 

 

 

 

 

 

 

 

 

 

 

Haumaru Housing – End of year results

CCO Governance and External Partnerships

Haumaru Housing is a new joint venture established by Auckland Council and The Selwyn Foundation.

This will ensure the long-term provision of affordable housing services for older people in Auckland.

Haumaru Housing will report to CCO Oversight Committee once a year to discuss performance and end of year results.

 

 

 

 

 

 

 

 

 

 

 

 

City Rail Link Limited (CRLL) – end of year results

CCO Governance and External Partnerships.

CRLL has been established to govern and manage the delivery of the City Rail Link CRL), as part of an agreement between the Crown and Auckland Council to jointly fund the project.

The company has the full governance, operational and financial responsibility for the CRL, with clear delivery targets and performance expectations.

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 and end of year results.

CRLL will attend the Committee meeting in October for a discussion on end of year results.

 

Progress to date:

CRLL presented to Governing Body this year at a workshop on 19 August 2020.

 

 

 

 

 

 

 

 

 

 

 

 

Tamaki Regeneration Company (TRC) - End of year results

CCO Governance and External Partnerships

TRC is a Crown entity that is jointly owned by the government and Auckland Council.

TRC is leading urban regeneration activity in Tāmaki to achieve four strategic objectives; social transformation, economic development, placemaking and housing resource.

TRC will report to CCO Oversight Committee once a year to discuss performance and end of year results.

 

 

 

 

 

 

 

 

 

 

 

 

                                                                                                                            

 

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

 

(Resolution number CCO/2019/3)

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.

 

The Council Controlled Organisation Oversight Committee approved the proposed content for inclusion in the 2020/21 letters of expectation to substantive council-controlled organisations.

 

The committee also delegated authority to the Mayor to finalise and issue the 2020/21 letters of expectation to substantive council-controlled organisations based on the resolutions of this committee.

 

(Resolution number CCO/2019/2)

 

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.

 

The recommended comments on the draft SOIs (2020/2023) for the five substantive and three non-substantive CCOs were noted by the Governing Body, and it was agreed that the feedback focussed on the matters raised in the letters of expectation, statutory requirements, and any other council strategies which have not been adequately addressed in the draft statements of intent.

 

Governing Body agreed that the Mayor and the Chair of the CCO Oversight Committee will prepare letters containing the shareholder comments to be sent to all of the relevant CCOs and that the content of these letters be based on the feedback contained in this report with any deletions or additions based on feedback at the meeting. Governing Body also agreed that staff will record any feedback at the meeting that relates to performance or operational issues and ensure it is raised with the relevant CCOs.

 

Authority was delegated to the manager, CCO Governance and External Partnerships to finalise the shareholder feedback on the draft statements of intent for Manukau Beautification Charitable Trust, Contemporary Art Foundation and Community Education Trust Auckland.

 

(Resolution Number GB/2020/62)

 

 



Council Controlled Organisation Oversight Committee

22 September 2020

 

Liaison councillors' updates

File No.: CP2020/12560

 

  

Te take mō te pūrongo

Purpose of the report

1.      To receive an update from liaison councillors to the boards of Council Controlled Organisations (CCOs).

Whakarāpopototanga matua

Executive summary

2.       In February 2020, the Council Controlled Organisation Oversight Committee resolved to establish the role of a CCO liaison councillor (Resolution number CCO/2020/3).

3.       The key purpose of the liaison councillor role is to develop trusting relationships with the CCOs, to allow a better exchange of information. Liaison councillors can act as a key point of contact when specific issues arise, and provide advice 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.       Liaison councillors are required to regularly report verbally to the CCO Oversight Committee, or in writing if unavailable to attend in person, about activities undertaken in the role and issues arising. This is the first meeting of the CCO Oversight Committee since the establishment of the liaison councillor role.

5.       Liaison councillors are allocated to each CCO as follows:

·        Auckland Tourism, Events and Economic Development: Cr John Watson

·        Auckland Transport: Deputy Mayor Bill Cashmore and Cr Chris Darby

·        Panuku Development Auckland: Cr Efeso Collins

·        Regional Facilities Auckland: Cr Richard Hills

·        Watercare: Cr Linda Cooper

 

6.      Staff will provide an overview of the guidelines and expectations for the liaison councillors (Attachment A).

 

Ngā tūtohunga

Recommendation/s

That the Council Controlled Organisation Oversight Committee:

a)      receive the updates from liaison councillors to the Council Controlled Organisations.

 

 

Ngā tāpirihanga

Attachments

No.

Title

Page

a

Guidance note for liaison councillors to Council-controlled organisations

23

     

Ngā kaihaina

Signatories

Author

Michelle Judge - Kaitohutohu Mana Whakahaere / Governance Advisor

Authoriser

Alastair Cameron - Manager - CCO Governance & External Partnerships

 


Council Controlled Organisation Oversight Committee

22 September 2020

 

PDF Creator


Council Controlled Organisation Oversight Committee

22 September 2020

 

Council-Controlled Organisations - Approval of statements of intent for 2020 - 2023

File No.: CP2020/10687

 

  

Te take mō te pūrongo

Purpose of the report

1.       To approve the 2020 – 2023 statements of intent (SOIs) for Auckland Council’s five substantive council-controlled organisations, and three legacy council-controlled organisations (CCOs).

Whakarāpopototanga matua

Executive summary

2.       This report recommends that the CCO Oversight Committee approve the final statements of intent for council’s substantive CCOs – Auckland Transport, Auckland Tourism, Events and Economic Development Limited, Panuku Development Auckland Limited, Regional Facilities Auckland and Watercare Services Limited for 2020 – 2023.

3.       The SOIs set out the objectives and activities of each CCO for the next three years. On 18 December 2019 council issued Letters of Expectation to each CCO and in response, the CCOs provided draft SOIs to the council by the original deadline of 1 March 2020.

4.       Given the COVID-19 pandemic situation, on council’s request, the CCOs revised their draft SOIs to reflect the revised annual budget.  The revised draft SOIs along with the proposed shareholder comments were presented to Governing Body on 25 June 2020.

5.       Staff consider that no major modifications are required for the final statements of intent, with the exception of Watercare Services Limited, and recommend that they are approved.

6.       The council has also received final statements of intent from three legacy CCOs. Staff recommend that the SOIs for Community Education Trust Auckland, Manukau Beautification Charitable Trust and Contemporary Art Foundation are approved.

7.       The CCO review recommended that the council develops a template CCOs must use when drafting their statement of intent, as well as a set of common key performance measures they must include, to ensure consistency in length, detail, presentation and benchmarks.

8.       Staff will be working with the CCOs to develop the SOI template.

 

Ngā tūtohunga

Recommendation/s

That the Council Controlled Organisation Oversight Committee:

a)      approve the 2020-2023 statements of intent for Auckland Transport, Auckland Tourism, Events and Economic Development Limited, Panuku Development Auckland Limited and Regional Facilities Auckland.

b)      approve the 2020-2023 statement of intent for Watercare Services Limited, subject to the requested modifications outlined in this report.

c)      delegate to the Chair of the Council Controlled Organisation Oversight Committee to write to Auckland Transport inviting it to work closely with Auckland Council on transport activity within the Auckland Climate Plan Te Taruke-a-Tawhiri.

d)      approve the 2020-2023 statements of intent for Community Education Trust Auckland, Manukau Beautification Charitable Trust and Contemporary Art Foundation for 2020 – 2023. 

 

Horopaki

Context

9.       The statement of intent sets out the objectives and activities of each CCO for the next three years. It serves as a basis for accountability to the council, as the shareholder, and provides an opportunity for the council to influence each organisation’s direction. The requirements for statement of intent are set out in Schedule 8 of the Local Government Act 2002 (LGA).

10.     Under the Local Government Act 2002, the council has the ability to modify a statement of intent to ensure it adequately reflects the council’s strategic priorities if it considers that is necessary.

11.     The council sent a letter of expectation to each of the five substantive CCOs on 18 December 2019. Each of the CCOs provided their original draft statements of intent to council prior to the legislative deadline of 1 March 2020.

12.     Given the COVID-19 pandemic situation, on council’s request, all CCOs revised their draft SOIs to reflect the revised annual budget and these, along with proposed shareholder comments were presented to Governing Body on 25 June 2020 (GB/2020/62). The CCOs were advised of council’s shareholder comments by way of letter.  Delegation was given to the Manager CCO Governance and External Partnerships to finalise the shareholder feedback on the draft SOIs for the three legacy CCOs.  

13.     The Governing Body also resolved to grant all CCOs an extension of time to complete the final SOI, until 31 July 2020. This is in accordance with the Local Government Act 2002, Schedule 8, Clause 4.  The CCOs provided council with their final board-approved statements of intent in accordance with this deadline.

14.     It should be noted that following agreement to merge ATEED and RFAL (GB/2020/90) a new statement of intent for the merged entity will be prepared for council approval, covering the period 1 December 2020-30 June 2021.

Tātaritanga me ngā tohutohu

Analysis and advice

15.     Staff have reconciled shareholder comments against the final statements of intent.  This reconciliation is provided in Attachment A.

16.     Staff consider that no major modifications are required for the statements of intent, with the exception of Watercare Services Limited, as outlined in this report.

17.     The statements of intent are provided in attachments B-I as follows:

·    Auckland Transport (Attachment B)

·    Auckland Tourism, Events and Economic Development Limited (Attachment C)

·    Panuku Development Auckland Limited (Attachment D)

·    Regional Facilities Auckland (Attachment E)

·    Watercare Services Limited (Attachment F)

·    COMET Auckland (Attachment G)

·    Manukau Beautification Charitable Trust (Attachment H)

·    Contemporary Art Foundation (Attachment I)

Auckland Transport (AT)

18.     Auckland Transport has faced significant challenges as a result of the COVID-19 situation. Its Statement of Intent reflects the prioritisation process which was undertaken through the Emergency Budget process, but nonetheless, Auckland Transport still faces a busy year of capital work. 

19.     It is notable that there is also significant discussion of the climate challenge, and Auckland Transport’s role in helping Council deliver on its climate plan Te Taruke-a-Tawhiri.  This reflects the fact that transport makes up around 40 per cent of Auckland emissions profile.  When the Board approved its SOI, it heard submissions from members of the public about the kind of step-change required to reduce transport emissions.  The SOI notes that AT is committed to doing what it can through its own levers to contribute to this.

20.     However, the SOI notes the limits of this, and identifies that central government policy settings will heavily determine the emissions pathway.  This understanding was reiterated by the Auckland Transport board chair at the 9 September 2020 Long-term Plan workshop. Given this, we recommend that implementation of the Auckland Climate Plan be supported by inviting Auckland Transport to work closely with Council on how the climate lens will be embedded into its decision-making and priorities.  This should include consideration of how we measure the emissions pathway as an advocacy tool with central government. 

Auckland Tourism, Events and Economic Development Limited (ATEED)

21.     The ATEED final statement of intent addresses all the matters raised in the shareholder feedback and there are no major issues for modification. 

22.     Changes to the final statement of intent of note include:

·    more detail has been included on the 2020/21 work programme, making clearer the planning priority initiatives, deliverables and projects under each of the four themes, along with more commentary to capture ATEED’s spatial focus

·    for the three new performance measures proposed in the revised draft SOI, targets have been set for two of these, with a benchmark to be established for the measure ‘uptake of Auckland play-book and associated brand assets from aucklandnz.com brand hub’.  An additional performance measure has been included relating to waste diversion from landfill and achievement of Carbon Zero status at ATEED delivered events.

Panuku Development Auckland Limited (Panuku)

23.     The Panuku final statement of intent addresses all the matters raised in the shareholder feedback and there are no issues for modification.

24.     Changes to the final statement of intent of note include:

·    the deliverables associated with each priority location are more clearly defined

·    more detail on the impacts of Covid-19 on their business

·    a new performance measure (18) – total value of general asset sales on average are within independent valuation threshold (the total value of properties disposed during year on average is above 90% agreed independent valuations).

Regional Facilities Auckland (RFA)

25.     The shareholder comments are reflected in the SOI, which should be approved.

Watercare Services Limited

26.     The Watercare final statement of intent addresses all the matters raised in the shareholder feedback with two exceptions:

·    Water efficiency strategy: The statement of intent does not refer to the Auckland Water Efficiency Strategy 2017 – 2020 and the need to update this strategy. We recommend that the committee should require the board to modify the statement of intent to include a work item on the water efficiency strategy, once the council has made any relevant decisions on the water supply and demand element of the Auckland Waters Strategy.   


 

·    Drought management plan: The statement of intent discusses Watercare’s response to the current drought. However, the shareholder feedback also asked Watercare to review the Drought Management Plan, which is not in the statement of intent. The CCO review independent panel identified the lack of a joint response plan as a problem. Council staff are already working with Watercare to ensure a coordinated and integrated drought response for the coming summer, including a joint plan, however we recommend that the committee requires the board to add this into the statement of intent.  

Legacy council-controlled organisations

27.     The final statements of intent for COMET Auckland and Manukau Beautification Charitable Trust addresses the matters raised in the shareholder feedback and there are no issues for modification. There was no shareholder feedback on the Contemporary Art Foundation draft 2020/21 statement of intent.

Tauākī whakaaweawe āhuarangi

Climate impact statement

28.     The general shareholder feedback to all substantive CCOs asked that the final SOIs identify planned activities are intended to address climate change and other environmental outcomes.  All CCOs have addressed this in their final documents.

29.     Auckland Transport’s SOI includes responses to the climate challenge and Auckland’s Climate Plan Te Taruke-a-Tawhiri in a number of areas. This reflects the awareness of the transport sector making up around 40 per cent of emissions in Auckland.  As noted earlier, inviting Auckland Transport to work closely with Council on how together we address these issues will be critical in the period of this SOI. 

Ngā whakaaweawe me ngā tirohanga a te rōpū Kaunihera

Council group impacts and views

30.     Council staff have advised the CCOs of the content of this report.

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

Local impacts and local board views

31.     The reconciliation exercise between the final statements of intent and the shareholder comments ensured that issues relating to local boards were addressed as required in the shareholder comments.

Tauākī whakaaweawe Māori

Māori impact statement

32.     The statements of intent contain each CCOs’ contribution to Māori outcomes. The  performance of each substantive CCO on these issues is reported on each quarter.

33.     Subsequent to the submission of final 2020/21 Statements of Intent, the draft Māori Outcomes Performance Measurement Framework – Kia ora Tāmaki Makaurau was approved by council’s Parks, Arts, Culture and Events Committee. 

34.     In partnership with council, CCOs will align their initiatives with the framework and support its refinement through the upcoming long-term plan process.  This includes aligning terminology in CCO documents going forward to refer to the Māori outcomes portfolio, rather than Te Toa Takatini.

35.     The Independent Māori Statutory Board was consulted on the final statement of intent and has confirmed that the issues it raised in the shareholder comments have been addressed.

Ngā ritenga ā-pūtea

Financial implications 

36.     The financial information in each CCO’s final statement of intent has been agreed with Financial Strategy and Planning and is consistent with the adopted Emergency Budget 2020/2021.

37.     However, for Watercare the financial tables differ from the Emergency Budget. This is mainly due to the make-up of the $121 million, that Watercare has been asked to find to partially mitigate the debt impact of the drought related capital expenditure, being different between the SOI financial tables and the assumptions made by council officers during the finalisation of the Emergency Budget. Watercare has agreed to report against both the budget in its SOI and the Emergency Budget.

38.     There is a target of $5 million savings factored into the Emergency Budget above the savings identified, so all CCOs need to find savings across the Council Group through greater use of shared services.  Most CCO final SOIs make a general reference to working with council on shared services and exploring efficiencies, however specific savings amounts are not identified.   This will be addressed through the course of the 2020/21 financial year.

Ngā raru tūpono me ngā whakamaurutanga

Risks and mitigations

39.     There are no major risks associated with approving the CCOs’ statements of intent. Recommendations for improvements to the SOI process are captured in the CCO Review Independent Panel’s final report and will form part of the CCO review recommendation implementation plan.

Ngā koringa ā-muri

Next steps

40.     If the committee approves the statements of intent, each substantive CCO will report on their performance every quarter. The first quarterly reports will be presented to the relevant committee in December 2020.  Legacy CCOs will report on their performance half-yearly.

41.     The CCO review recommended that the council develops a template CCOs must use when drafting their statement of intent, as well as a set of common key performance measures they must include, to ensure consistency in length, detail, presentation and benchmarks.

42.     Staff will be working with the CCOs to develop the SOI template.

 

Ngā tāpirihanga

Attachments

No.

Title

Page

a

Reconciliation table: CCO Statements of Intent with shareholder feedback

31

b

Auckland Transport - Statement of Intent 2020 to 2023

43

c

Auckland Tourism, Events and Economic Development - Statement of Intent 2020 – 2023

91

d

Panuku Development Auckland - Statement of Intent 2020 - 2023

115

e

Regional Facilities Auckland - Statement of Intent 2020 - 2023

159

f

Watercare Services Limited - Statement of Intent 2020 - 2023

191

g

COMET Auckland - Statement of Intent 2020 - 2023

227

h

Manukau Beautification Charitable Trust - Statement of Intent 2020 - 2023

245

i

CAF - Statement of Intent 2020 -2023

283

     

Ngā kaihaina

Signatories

Authors

Bianca Fourie - Department Administrator

Sarah Holdem - Principal Advisor

Sarah Johnstone-Smith - Principal Advisor

Claire Gomas - Principal Advisor

Edward Siddle - Principal Advisor

Authoriser

Alastair Cameron - Manager - CCO Governance & External Partnerships

 


Council Controlled Organisation Oversight Committee

22 September 2020

 

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Council Controlled Organisation Oversight Committee

22 September 2020

 

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Council Controlled Organisation Oversight Committee

22 September 2020

 

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Council Controlled Organisation Oversight Committee

22 September 2020

 

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Council Controlled Organisation Oversight Committee

22 September 2020

 

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Council Controlled Organisation Oversight Committee

22 September 2020

 

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Council Controlled Organisation Oversight Committee

22 September 2020

 

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Council Controlled Organisation Oversight Committee

22 September 2020

 

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22 September 2020

 

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Council Controlled Organisation Oversight Committee

22 September 2020

 

Exclusion of the Public: Local Government Official Information and Meetings Act 1987

That the Council Controlled Organisation Oversight Committee

a)      exclude the public from the following part(s) of the proceedings of this meeting.

The general subject of each matter to be considered while the public is excluded, the reason for passing this resolution in relation to each matter, and the specific grounds under section 48(1) of the Local Government Official Information and Meetings Act 1987 for the passing of this resolution follows.

This resolution is made in reliance on section 48(1)(a) of the Local Government Official Information and Meetings Act 1987 and the particular interest or interests protected by section 6 or section 7 of that Act which would be prejudiced by the holding of the whole or relevant part of the proceedings of the meeting in public, as follows:

 

C1       CONFIDENTIAL: Council-controlled Organisations - Quarterly reports ending 30 June 2020

Reason for passing this resolution in relation to each matter

Particular interest(s) protected (where applicable)

Ground(s) under section 48(1) for the passing of this resolution

The public conduct of the part of the meeting would be likely to result in the disclosure of information for which good reason for withholding exists under section 7.

s7(2)(h) - The withholding of the information is necessary to enable the local authority to carry out, without prejudice or disadvantage, commercial activities.

In particular, the report contains financial adjustments,assumptions and judgements that have impact on the financials results of the Auckland Council Group as at 30 June 2020.

s48(1)(a)

The public conduct of the part of the meeting would be likely to result in the disclosure of information for which good reason for withholding exists under section 7.