Agenda of Council Controlled Organisation Oversight Committee

Terms of Reference

Responsibilities

The purpose of the committee is to:

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

· set policy relating to CCO governance

· approve CCO Statements of Intent

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

Key responsibilities include:

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

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

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

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

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

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

Powers

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

Except:

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

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

(ii) Power to establish subcommittees.

Auckland Plan Values

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

Exclusion of the public – who needs to leave the meeting

Members of the public

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

Those who are not members of the public

General principles

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

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

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

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

Members of the meeting

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

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

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

Independent Māori Statutory Board

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

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

Staff

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

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

Local Board members

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

Council Controlled Organisations

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

1 Apologies

At the close of the agenda no apologies had been received.

2 Declaration of Interest

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

3 Confirmation of Minutes

That the Council Controlled Organisation Oversight Committee:

a) confirm the ordinary minutes of its meeting, held on Tuesday, 27 October 2020, including the confidential section, as a true and correct record.

4 Petitions

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

5 Public Input

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

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

6 Local Board Input

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

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

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

7 Extraordinary Business

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

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

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

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

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

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

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

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

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

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

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

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

Council Controlled Organisation Oversight Committee

24 November 2020

Summary of Council Controlled Organisation Oversight Committee information memoranda and briefings (including the forward work programme) - 24 November 2020

File No.: CP2020/15534

Te take mō te pūrongo

Purpose of the report

1. To note the progress on the forward work programme appended as Attachment A.

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

Whakarāpopototanga matua

Executive summary

3. This is a regular 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 memoranda have been distributed:

Date	Subject
5/11/20	CCO Review Implementation Programme update

5. The following workshops have taken place:

Date	Workshop/Briefing
21/10/20	CONFIDENTIAL: Annual performance presentations – Haumaru Housing, City Rail Link Ltd, Tāmaki Regeneration Company
27/10/20	CCO Review Implementation Programme and proposed changes to Accountability Mechanisms

6. These documents can be found on the Auckland Council website, at the following link:

http://infocouncil.aucklandcouncil.govt.nz/

o at the top left of the page, select meeting/Te hui “Council Controlled Organisation Oversight Committee” from the drop-down tab and click “View”;

o under ‘Attachments’, select either the HTML or PDF version of the document entitled ‘Extra Attachments’.

7. Note that, unlike an agenda report, staff will not be present to answer questions about the items referred to in this summary. Council Controlled Organisation Oversight Committee members should direct any questions to the authors.

Ngā tūtohunga

Recommendation/s

That the Council Controlled Organisation Oversight Committee:

a) note the progress on the forward work programme appended as Attachment A of the agenda report.

b) receive the Summary of Council Controlled Organisation Oversight Committee information memoranda and briefings – 24 November 2020.

Ngā tāpirihanga

Attachments

No.	Title	Page
a ⇩	Forward Work Programme	13
b ⇨	Memo to CCO Oversight Committee: CCO Review Implementation Programme update (Under Separate Cover)
c ⇨	CCO Review Implementation Programme and proposed changes to Accountability Mechanisms - Workshop Minutes, Draft Statement of Intent template, and PowerPoint presentation - 27 October 2020 (Under Separate Cover)

Ngā kaihaina

Signatories

Author	Michelle Judge - Kaitohutohu Mana Whakahaere / Governance Advisor
Authoriser	Alastair Cameron - Manager - CCO Governance & External Partnerships

Council Controlled Organisation Oversight Committee

24 November 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
Area of work and Lead Department	Reason for work	Committee role (decision and/or direction)	Jan	Feb	Mar	Apr	May	Jun	Jul	Aug	Sep	Oct	Nov	Dec
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.
Ports of Auckland statement of corporate intent CCO Governance and External Partnerships.	Under the Port Companies Act, the council provides feedback to Ports of Auckland Limited (POAL) on its statement of corporate intent.	Decision: To consider POAL’s final statement of corporate intent. Progress to date: The draft statement of corporate intent was received by the Governing Body on 27 August 2020. Once POAL has provided a final version, the council may consider it to see how well POAL has reflected its comments. Report to be provided to the committee in December 2020.
Regional Land Transport Plan CCO Governance and External Partnerships.	The Regional Land Transport Plan (RLTP) sets out strategic transport priorities and the transport investment programme for Auckland, and is a statutory responsibility of Auckland Transport’s Board, acting as the Regional Transport Committee. Recommendation 4 of the 2020 Council-controlled Organisations Review was for Auckland Transport and the council to jointly prepare the regional land transport plan. The Review envisaged staff at both organisations working collaboratively to develop the plan, with the governing body providing endorsement before it was finalised by the Auckland Transport Board.	To delegate a group of councillors to engage with the Regional Transport Committee on the development of the Regional Land Transport Plan. Progress to date: The recommendations from the CCO Review report were agreed on by GB on 27 August 2020 (Resolution Number: GB/2020/89).
Auckland Council Branding Guidelines CCO Governance and External Partnerships	The recommendations from the CCO Review report were agreed on by GB on 27/08/2020 (Resolution Number: GB/2020/89). Two of the recommendations in the CCO Review report included that: - (Rec 57) The council updates its brand guidelines to ensure the pōhutakawa logo is used in a clear, consistent and flexible way on all council-funded services, activities and facilities, including when used alongside CCO operational brands. - (Rec 58) The council monitors CCOs’ compliance with its brand guidelines.	To receive an update on the progress of the two CCO Review recommendations (number 57 and 58), relating to the Auckland Council Branding Guidelines. Progress to date: The recommendations from the CCO Review report were agreed on by GB on 27 August 2020 (Resolution Number: GB/2020/89)
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 in November. A workshop will be held. Progress to date: A programme update was received in February 2020 The CCO Review was received by the Governing Body in on 27 August 2020. An update by way of memorandum will be provided in November 2020.
Auckland Unlimited 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 new merged entity, Auckland Unlimited, resulting out of the amalgamation covering the period 1 December 2020 to 30 June 2021. The final SOI will be presented to the committee in November 2020.
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. A workshop will be held in November 2020 and a report will be provided in December 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 ‘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

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)
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. SOIs were approved by the committee in September 2020.	The Council Controlled Organisation Oversight Committee approved the 2020-2023 statements of intent at the September 2020 meeting, for: Auckland Transport, Auckland Tourism, Events and Economic Development Limited, Panuku Development Auckland Limited and Regional Facilities Auckland; and Community Education Trust Auckland, Manukau Beautification Charitable Trust and Contemporary Art Foundation. The committee approved the 2020-2023 statement of intent for Watercare Services Limited, subject to the requested modifications. (Resolution number CCO/2020/10)
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. Results will be presented in a workshop in October 2020.	Results were presented to the CCO Oversight Committee in a workshop in October 2020.
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. Results will be presented in a workshop in October 2020. CRLL presented to Governing Body this year at a workshop on 19 August 2020.	Results were presented to the CCO Oversight Committee in a workshop in October 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. Results will be presented in a workshop in October 2020.	Results were presented to the CCO Oversight Committee in a workshop in October 2020.
Merged Entity – new name	Following decisions at the Governing Body on 27 August 2020, the CCO Oversight committee are to approve a new name for the merged entity (resulting from the amalgamation of RFAL and ATEED) covering the period 1 December 2020 to 30 June 2021. (Resolution number: GB/2020/90)	To approve the new name for the merged entity resulting from the amalgamation of RFAL and ATEED. A report will be presented to the committee in October 2020.	The new name for the merged entity was approved by the CCO Oversight Committee in October 2020 (Resolution number CCO/2020/17)
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.	Criteria approved at the CCO Oversight Committee meeting in October 2020. (Resolution number CCO/2020/21)

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)

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.

SOIs were approved by the committee in September 2020.

The Council Controlled Organisation Oversight Committee approved the 2020-2023 statements of intent at the September 2020 meeting, for: Auckland Transport, Auckland

Tourism, Events and Economic Development Limited, Panuku Development

Auckland Limited and Regional Facilities Auckland; and Community Education Trust

Auckland, Manukau Beautification Charitable Trust and Contemporary Art

Foundation.

The committee approved the 2020-2023 statement of intent for Watercare Services Limited, subject to

the requested modifications.

(Resolution number CCO/2020/10)

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. Results will be presented in a workshop in October 2020.

Results were presented to the CCO Oversight Committee in a workshop in October 2020.

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. Results will be presented in a workshop in October 2020.

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

Results were presented to the CCO Oversight Committee in a workshop in October 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. Results will be presented in a workshop in October 2020.

Results were presented to the CCO Oversight Committee in a workshop in October 2020.

Merged Entity – new name

Following decisions at the Governing Body on 27 August 2020, the CCO Oversight committee are to approve a new name for the merged entity (resulting from the amalgamation of RFAL and ATEED) covering the period 1 December 2020 to 30 June 2021.

(Resolution number: GB/2020/90)

To approve the new name for the merged entity resulting from the amalgamation of RFAL and ATEED.

A report will be presented to the committee in October 2020.

The new name for the merged entity was approved by the CCO Oversight Committee in October 2020

(Resolution number CCO/2020/17)

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.

Criteria approved at the CCO Oversight Committee meeting in October 2020.

(Resolution number CCO/2020/21)

No.	Title	Page
a ⇨	Council Controlled Organisations - Quarterly reports ending 30 June 2020 (Under Separate Cover)

Council Controlled Organisation Oversight Committee

24 November 2020

Approval of Statement of Intent for Auckland Unlimited, 2020-2023, and extension of statutory deadlines for 2021 statements of intent

File No.: CP2020/15887

Te take mō te pūrongo

Purpose of the report

1. To approve the consolidated Statement of Intent for Auckland Unlimited, 2020-2023.

2. To approve the extension of statutory deadlines for all Council Controlled Organisation (CCO) statements of intent in 2021, as allowed for in the Local Government Act 2002.

Whakarāpopototanga matua

Executive summary

3. On 27 August 2020, Governing Body approved the merger of Regional Facilities Auckland (RFA) and Auckland Tourism, Events, and Economic Development (ATEED), to be established from 1 December 2020. It agreed that a statement of intent for the merged entity covering the period 1 December 2020 to 30 June 2021 would be approved by the Council Controlled Organisation Oversight Committee (CCO Oversight Committee), and that the new statement of intent would be a consolidation of the current performance measurement framework and budgets for ATEED and RFA.

4. On 27 October 2020, the CCO Oversight Committee approved the name of the merged entity being Auckland Unlimited.

5. Staff in the existing RFA and ATEED organisations have worked closely with Council staff on a consolidated Statement of Intent. As required by the resolution, it reflects a consolidation of the existing two Statements of Intent, which were approved on 22 September 2020 (CCO/2020/10). The board for the new entity has approved the draft Statement of Intent for submission to council.

6. Staff consider that the consolidated Statement of Intent is consistent with the Statements of Intent approved in September 2020. Given this, and the compressed timetable for achieving establishment of Auckland Unlimited, we note there are no proposed shareholder comments for the consolidated Statement of Intent.

7. Over the next few months, the Board of Auckland Unlimited will work closely with its own staff and that of council to establish the new strategic purposes and focus areas for the merged CCO. This is being done in alignment with the Long-term Plan process.

8. Auckland Unlimited will draft a new 2021-2024 statement of intent reflecting this ongoing development, and submit it to Council as part of the usual statement of intent process.

9. However, given the uncertainty of the financial situation of Council within the Long-term Plan process, and the public consultation which will occur during February and March 2021, staff recommend that the Committee approves an extension of the statutory deadlines for all statements of intent in 2021. This ability to extend deadlines by one month is provided for in the Local Government Act 2002 (schedule 8, section 4). It would extend:

· the date of submission of the draft statements of intent to 1 April 2021

· the date when the boards must consider shareholder feedback to 1 June 2021, and

· the date for final submission of statements of intent to 31 July 2021.

10. If approved, staff recommend the CCO Oversight Committee delegate to the Manager, CCO Governance and External Partnerships to write to each CCO advising them in writing of the extension.

Ngā tūtohunga

Recommendation/s

That the Council Controlled Organisation Oversight Committee:

a) approve the consolidated Auckland Unlimited Statement of Intent 2020-2023, noting that it covers a seven-month period from establishment of the organisation at 1 December 2020, to 30 June 2021.

b) approve a one-month extension of statutory deadlines for all council-controlled organisation statements of intent for 2021-2024, as provided for in the Local Government Act Schedule 8, section 4.

c) delegate to the Manager, CCO Governance and External Partnerships to write to all council-controlled organisations advising of the extension of statutory deadlines.

Horopaki

Context

11. On 27 August 2020, Governing Body approved the merger of Regional Facilities Auckland Limited (RFA) and Auckland Tourism, Events, and Economic Development (ATEED), to be established from 1 December 2020. It agreed that a statement of intent for the merged entity covering the period 1 December 2020 to 30 June 2021 would be approved by the CCO Oversight Committee, and that the new statement of intent would be a consolidation of the current performance measurement framework and budgets for ATEED and RFA (GB/2020/90).

12. On 27 October 2020, CCO Oversight Committee approved the name of the merged entity being Auckland Unlimited (CCO/2020/17).

Tātaritanga me ngā tohutohu

Analysis and advice

13. Staff in the existing RFA and ATEED organisations have drafted a Statement of Intent for Auckland Unlimited. As required by the resolution, it reflects a consolidation of the existing two Statements of Intent, which were approved on 22 September 2020 (CCO/2020/10).

14. The RFA Board (which will become the Auckland Unlimited Board) has considered the consolidated Statement of Intent twice, at is meetings of 21 September and 28 October 2020. At the September meeting, the board noted that the merged statement of intent does not attempt to create a new strategy given it has a shelf life of seven months, and because the new organisation will not start to fully develop its strategic purpose and objectives until after establishment. Additionally, the available funding and priority projects need to await further direction from Council through the letter of expectation, statement of expectation, and 2021-2031 Long-term Plan process.

15. The Board therefore confirmed Council’s resolution, that the merged statement of intent should clearly position itself as a functional amalgamation of the current RFA and ATEED statements of intent. The Board confirmed that further work is required to develop a strategy and framework that captures the full range of opportunities envisaged through the merger in an integrated way. This work will be undertaken as part of the development of the 2021-24 statement of intent, which will begin in December 2020.

16. The Board considered an updated version of the statement of intent on 28 October. They agreed that it be submitted to Auckland Council for approval at the CCO Oversight Committee meeting on 24 November 2020.

17. Council staff have been provided multiple drafts of the Auckland Unlimited consolidated statement of intent as it has been developed. Some of the key features of the Statement of Intent are:

· It includes an initial draft purpose for the organisation of “Enriching cultural and economic life in Tāmaki Makaurau by creating and sharing experiences and opportunities”, which is consistent with the independent panel review of CCOs (CCO Review) and the report of 27 August 2020 which recommended the merger to Council. This is supported by a draft strategic framework (page 9).

· It clearly identifies the seven-month life-span of the document, its functional purpose, and the intention to undertake further work over the coming month to develop a longer-term strategic vision for Auckland Unlimited.

· It appropriately sets the organisation’s activities for the next few months in the context of COVID-19 recovery.

· The three-year work programme accurately reflects the previously agreed work programmes of ATEED and RFA, albeit reconfigured to reflect the draft strategic framework.

· The key performance indicators are separated to clearly distinguish between the Auckland Unlimited Limited measures (former ATEED KPIs), and the Auckland Unlimited Trust KPIs (former RFA KPIs). The local board satisfaction measure has been removed as the performance of the merged entity needs to be benchmarked after establishment. An indicator of this sort will be considered in the 2021-2024 statement of intent process.

· Financial tables are also presented separately for the company and the trust.

18. Staff have considered the draft and confirm that it is consistent with the Committee’s direction when agreeing the merger and reflects the previously agreed Statements of Intent for RFA and ATEED. Accordingly, staff propose that no formal shareholder comments are required.

19. Nonetheless, the Statement of Intent does include a number of intended actions which look towards the longer-term activities of Auckland Unlimited, beyond the seven-month life of this document. For example, establishing a modern stadiums network, and developing new metrics to measure what Auckland Unlimited does. While these activities are entirely appropriate, the success of them will depend on a close relationship between Auckland Unlimited and Council, both at governor and staff levels. In this way, changes which were identified by the CCO Review (such as the ‘completing the jigsaw’ in sports and culture) can be properly supported.

Next steps

20. Over the next few months, the Board of Auckland Unlimited will work to establish the new strategic purposes and focus areas for the merged CCO. This is being done in alignment with the Long-term Plan process.

21. It is expected that Auckland Unlimited’s new strategic vision will capture the full range of opportunities in an integrated way and respond to the challenges set out for both Auckland Unlimited and indeed the council in the CCO Review.

22. Auckland Unlimited will draft a new 2021-2024 statement of intent reflecting this ongoing development and submit it to council as part of the usual statement of intent process.

Extension of statement of intent deadlines for 2021

23. Given the uncertainty around the financial situation of Auckland Council through the Long-term Plan process, and the fact public consultation will occur during February and March 2021, the CCOs will not be in a good position to provide significantly advanced draft statements of intent by the usual deadline of 1 March. Meeting this deadline typically requires draft statements of intent to be submitted to CCO boards in early-mid February so they can be approved for submission to Council.

24. It would be advantageous in a Long-term Plan year if the CCOs had more time to see how the ten-year budget process is progressing, and what the priorities of Aucklanders and the council are. This is also true at the end of the process, where it would be useful for CCO Boards to have seen the final decision-making of Auckland Council on the Long-term Plan before finalising their statements of intent.

25. While this is particularly the case for Auckland Unlimited due to its nascent development, it is true of all of the CCOs.

26. The Local Government Act (Schedule 8, section 4) provides the ability for CCO shareholders to approve an extension of the statutory deadlines for all statements of intent for up to one month. This ability to extend deadlines applies to:

· the date of submission of the draft statement of intents, which would become 1 April 2021

· the date when the boards must consider shareholder feedback, which would become 1 June 2021, and

· the date for final submission of statements of intent, which would become 31 July 2021.

27. We recommend that the Council Controlled Organisation Oversight Committee approve an extension of each of these three deadlines, and delegate to the Manager, CCO Governance and External Partnerships to write to each CCO advising them in writing of the extension.

Tauākī whakaaweawe āhuarangi

Climate impact statement

28. The consolidated statement of intent reflects the previous content of the RFA and ATEED statements of intent for 2020-2023 which was agreed in September. The focus of Auckland Unlimited’s efforts are to contribute to council’s emissions reductions target, and ensure it is prepared for the physical impacts of climate change. Page 11 of the consolidated Statement of Intent (Attachment A) outlines this twin internal/external focus.

Ngā whakaaweawe me ngā tirohanga a te rōpū Kaunihera

Council group impacts and views

29. There are no specific council group impacts arising from this report.

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

Local impacts and local board views

30. The consolidated statement of intent reflects previously agreed commitments to local board engagement, and to working with local boards on local economic development.

31. The report notes above that a performance measure about local board engagement has been excluded in this consolidated statement of intent, but will be reinstated when it has been benchmarked for the merged CCO.

Tauākī whakaaweawe Māori

Māori impact statement

32. The consolidated statement of intent reflects previously agreed commitments to achieving Māori outcomes in the RFA and ATEED statements of intent.

33. The document notes that a key priority for Auckland Unlimited will be the development of a new Māori Outcomes Plan that draws together the RFA and ATEED’s existing Māori Responsiveness Plans. There will be two focus areas:

· Transformational opportunities within the Māori Economy across Tāmaki Makaurau; and

· Targeted activities and programmes across the portfolio that give full expression to the unique, contemporary Māori identity and footprint across Tāmaki Makaurau.

34. An important element when Auckland Unlimited develops its plans will be to outline how it will respond to the post COVID-19 impacts on the Māori Economy, and ensure that Māori stakeholders have opportunities to engage with council and Auckland Unlimited as it develops its revised strategic direction (as outlined in the ‘Next Steps’ section below).

Ngā ritenga ā-pūtea

Financial implications

35. The consolidated statement of intent reflects previously agreed financial components in the RFA and ATEED statements of intent.

Ngā raru tūpono me ngā whakamaurutanga

Risks and mitigations

36. There are no risks arising from the consolidation of the existing two statements of intent of RFA and ATEED.

Ngā koringa ā-muri

Next steps

37. If the consolidated statement of intent is approved, it will underpin the establishment of Auckland Unlimited, which is to take place on 1 December 2020.

38. Following establishment, the Board will be putting significant effort into developing further the merged entity’s strategic vision and purpose, in alignment with Council’s Long-term Plan process and decisions.

39. A new draft statement of intent will be due in 2021, to cover 2021-2024. This report proposes an extension of the deadline for submitting this initial draft to 1 April 2021, not only for Auckland Unlimited but for all CCOs. If this extension is approved, the Manager, CCO Governance and External Partnerships will write to the CCOs formally advising them of the extension.

Ngā tāpirihanga

Attachments

No.	Title	Page
a ⇩	FINAL Auckland Unlimited Statement of Intent 2020-2023	29

Ngā kaihaina

Signatories

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

Council Controlled Organisation Oversight Committee

24 November 2020

Political engagement with Regional Land Transport Plan process

File No.: CP2020/17187

Te take mō te pūrongo

Purpose of the report

1. To delegate a group of councillors to provide guidance to Auckland Transport on the development of the Regional Land Transport Plan.

Whakarāpopototanga matua

Executive summary

2. The Regional Land Transport Plan (RLTP) sets out strategic transport priorities and the transport investment programme for Auckland, and is a statutory responsibility of Auckland Transport’s Board, acting as the Regional Transport Committee.

3. Recommendation 4 of the 2020 Council-controlled Organisations Review was for Auckland Transport and the council to jointly prepare the regional land transport plan. The Review envisaged staff at both organisations working collaboratively to develop the plan, with the governing body providing endorsement before it was finalised by the Auckland Transport Board.

4. The Regional Land Transport Plan 2021-2031 is due to be completed in late May 2021 alongside the current revision of the Auckland Transport Alignment Project, and the Long-term Plan 2021-2031.

5. Council staff have worked with Auckland Transport on proposed engagement through to approval of the Regional Land Transport Plan. Two key points of political engagement are in early February prior to the RLTP being approved for public consultation, and in early May when the plan will be brought to Council for endorsement.

6. Due to the tight timeframe, which of course includes the Christmas period where there are few council committees in operation, these formal elements of engagement do not allow for more informal feedback to be provided to Auckland Transport as it develops the RLTP. Staff propose that a small group of councillors, led by the two liaison councillors for Auckland Transport, be delegated to work with Auckland Transport and council’s transport strategy team through the process. Staff involved in the RLTP development will provide support.

7. When the RLTP is developed again in three years’ time, a process will be put in place more fully meets the intent of the CCO Review recommendation and builds on the experience with this RLTP.

Ngā tūtohunga

Recommendation/s

That the Council Controlled Organisation Oversight Committee:

a) agree that a group of councillors, including the two liaison councillors for Auckland Transport, will work with Auckland Transport as it develops the Regional Land Transport Plan 2021-2031.

Horopaki

Context

8. The Regional Land Transport Plan is one of several strategic documents, plans or programmes which Auckland Transport is either responsible for or significantly determines its activities. The others include the Auckland Transport Alignment Project (ATAP; aligns the priorities of Auckland Council and central government), the Council Long-term Plan, the Regional Fuel Tax programme, and the National Land Transport Plan (which sets Auckland Transport’s funding from the national funding pool).

9. An RLTP sets out the region’s land transport objectives, priorities and measures for at least 10 years. It includes the land transport activities of Auckland Transport, the New Zealand Transport Agency (Waka Kotahi), KiwiRail and other agencies. It is also required to be consistent with the Government Policy Statement on Land Transport.

10. All publicly funded land transport activities in Auckland are contained in the RLTP, including:

· transport planning and investment in improvements for customers

· the road network, including state highways

· road safety activities delivered in partnership by AT, Waka Kotahi, and the New Zealand Police

· public transport (bus, rail and ferry) services

· improvements to bus stops, rail stations and ferry wharves, and the creation of transport interchanges and park-and-ride facilities

· footpaths and cycleways

· management and improvement of rail track infrastructure by KiwiRail and City Rail Link Limited (CRLL)

· parking provision and enforcement activities

· travel demand management.

11. The Regional Transport Committee (which comprises the Auckland Transport Board and a representative of Waka Kotahi) is required to complete a review of the RLTP during the six months prior to the end of the third year of the Plan, to ensure that the Plan is relevant, aligned with the strategic context, and that it gives effect to the GPS. The 2021-2031 RLTP is a ‘review’ of the 2018-2028 Plan.

12. Public consultation is required if the RLTP is revised.

13. The 2020 CCO Review noted that in 2013, Auckland Transport assumed responsibility from the council for setting the city’s transport priorities in the RLTP. The change left the council in a unique position among local authorities of having no statutory role in developing the transport strategy in its jurisdiction.

14. The CCO Review felt that this was at odds with the intent of Auckland’s 2010 local government reforms, which was to give the CCO responsibility for preparing a regional transport plan and the council for approving it to ensure consistency with its own strategic planning. In the absence of immediate legislative change, the CCO Review recommended that Auckland Transport and council staff work together collaboratively to develop the RLTP, with the governing body endorsing it prior to it going to the Auckland Transport Board for final approval.

Tātaritanga me ngā tohutohu

Analysis and advice

15. Since the CCO Review reported to Council in late August 2020, Auckland Transport has been developing its programme for reviewing the RLTP. Staff at both organisations have been considering how best to collaborate on development of the RLTP, consistent with the CCO Review recommendation. This process is also influenced by the revision of the Auckland Transport Alignment Project, and the Council’s Long-term Plan process, both of which have been underway in second half of the 2020 calendar year.

16. Engagement at staff level is able to continue as required to support the process.

17. The timeline developed by staff proposed a number of formal engagements with councillors to ensure that the direction of development is consistent with that expected by council. Workshop time is being explored to give all governing body members visibility of the draft plan. However, given the demand on committee and councillors’ time due to the Long-term Plan process, and with the Christmas period approaching, there are very few opportunities where the initial drafts of the RLTP can be shared with councillors.

18. Staff therefore propose that a small group of councillors be formed to lead Auckland Council’s engagement with the RLTP, in addition to the formal committees noted above. This group would be delegated to provide feedback to Auckland Transport on initial drafts and meet with Auckland Transport as required for briefings and workshop-style sessions. Its role could also extend through the public consultation phase (February to April 2021) to receive early indications of public feedback on the RLTP.

19. Given their prior experience of working with the Auckland Transport Board, and the relationships established, we propose that the small group of councillors include the two current liaison councillors for Auckland Transport. Additional councillors would be nominated at the CCO Oversight Committee meeting for this role.

20. Staff from the transport strategy and CCO Governance teams will provide support to this process.

21. We note that that it is nonetheless intended that formal endorsement of the draft will take place in early February 2021 (Planning Committee) and prior to the Auckland Transport Board agreeing the RLTP (which takes place in late May 2021).

22. Council and Auckland Transport staff will continue over the next three years to develop a more collaborative approach for developing the following RLTP.

Tauākī whakaaweawe āhuarangi

Climate impact statement

23. There are no specific climate impacts arising from establishing a group of councillors to provide guidance to Auckland Transport on the development of the RLTP.

Ngā whakaaweawe me ngā tirohanga a te rōpū Kaunihera

Council group impacts and views

24. Auckland Transport staff have been developing the RLTP timetable alongside council staff.

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

Local impacts and local board views

25. Opportunities for briefings of local board chairs have been built into the RLTP timetable, such as in February prior to public consultation commencing.

Tauākī whakaaweawe Māori

Māori impact statement

26. There are no specific Māori impacts arising from establishing a group of councillors to provide guidance to Auckland Transport on the development of the RLTP.

Ngā ritenga ā-pūtea

Financial implications

27. There are no financial implications arising from establishing a group of councillors to provide guidance to Auckland Transport on the development of the RLTP.

28. We note that given the impact of COVID-19 and the fact that a significant portion of the transport budget is already allocated to projects that are underway, contractually committed or necessary to maintaining the existing transport system (OPEX and renewals for example), there will be limited discretion to fund new projects through this RLTP process.

Ngā raru tūpono me ngā whakamaurutanga

Risks and mitigations

29. A key risk of the RLTP process is insufficient political engagement at council level due to the RLTP timetable taking place at the same time the Long-term Plan is being developed, and while the Christmas shutdown is underway. The proposal outlined in this report seeks to mitigate this risk by providing an alternative means by which engagement can take place, until committee meetings and workshops resume in late January 2021.

Ngā koringa ā-muri

Next steps

30. If a group of councillors is agreed the committee, including particular nominees, staff will provide those councillors with an outline of the timetable and discuss opportunities to engage with Auckland Transport prior to Christmas.

31. Workshop time for a discussion of the RLTP development with all councillors is still being discussed and may be possible.

Ngā tāpirihanga

Attachments

There are no attachments for this report.

Ngā kaihaina

Signatories

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

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