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.

No.	Title	Page
a ⇩	Forward Work Programme	15
b ⇨	Memo and Letter of Expectations for 2021-22 - Tāmaki Redevelopment Company (Under Separate Cover)

Council Controlled Organisation Oversight Committee

23 February 2021

Kōmiti Aromātai Whakahaere Kaupapa Kei Raro I Te Maru O te Kaunihera / CCO Oversight Committee
Forward Work Programme 2021

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 2021
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
CCO Review CCO Governance and External Partnerships	As per the CCO Review: Terms of Reference, agreed by the Governing Body in November 2019 (Resolution number: 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 received by the Governing Body on 27 August 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 programme implementation were to be provided to the CCO Oversight Committee every six months.	To receive updates on the implementation and progression of the 64 summary recommendations of the CCO Review Progress to date: A programme update was received in February 2020 The CCO Review was received by the Governing Body on 27 August 2020. An update by way of memorandum was provided in November 2020. An update will be provided in February 2021.
Auckland Council Branding Guidelines CCO Governance and External Partnerships	The recommendations from the CCO Review report were received by the Governing Body on 27 August 2020 (Resolution number: GB/2020/89). Two of the recommendations in the CCO Review report were: - (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 a progress update on the two CCO Review recommendations (number 57 and 58), relating to the Auckland Council Branding Guidelines. A workshop will be held in February 2021.
Te Puru Community Charitable Trust Organisation – extension of exemption CCO Governance and External Partnerships	To extend the Te Puru Community Charitable Trust’s exemption from the requirements of the Local Government Act 2002 under Section 7, Exempt Organisations, to 2024. The exemption means that Te Puru does not need to prepare a Statement of Intent (SOI) or report semi-annually to the Governing Body.	Decision: To approve Te Puru’s extension to the exemption from council controlled organisation requirements under the Local Government Act 2002. A report will be provided in February 2021.
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 CCOs 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 in December 2019, and December 2020. Second quarter reports received for substantive council-controlled organisations in March 2020. Third quarter reports were scheduled for June 2020; however this meeting was cancelled due to COVID-19. Fourth quarter reports were received for substantive council-controlled organisations September 2020. Second quarter reports for substantive council-controlled organisations will be received in March 2021.
Highbrook Park Trust - Review of Trust Deed and Management Contract CCO Governance and External Partnerships	To review the arrangements for the Highbrook Park Trust’s maintenance of a park on the Waiouru Peninsula	Decision: To review the Trust Deed and management contract for Highbrook Park Trust. A report will be provided in April 2021.
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 Updates were provided in September, October and November 2020. Updates will be provided in March 2021.
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 2021. As shareholder council can provide comments on the drafts to CCOs.	Decision: Seeking committee approval of proposed shareholder comments on substantive and non-substantive CCO draft 2021/2024 Statements of Intent. Progress to date: On 24 November 2020, the committee agreed to extend the SOI timeline by one month (resolution number: CCO/2020/27). A report will be provided in April 2021.
Final SOIs CCO Governance and External Partnerships	Under legislation CCOs must deliver annually a final statement of intent to its shareholders by 30 June 2021.	Decision: Seeking committee approval of final 2020/21 Statements of Intent from its substantive and non-substantive CCOs. Progress to date: On 24 November 2020, the committee agreed to extend the SOI timeline by one month (resolution number: CCO/2020/27). A report will be provided in August 2021.
Economic Development Action Plan CCO Governance and External Partnerships	As per the CCO Review: Terms of Reference, agreed by the Governing Body in November 2019 (Resolution number: 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 received by the Governing Body on 27 August 2020 (Resolution number: GB/2020/89). Recommendation number 20 stated that the Council establishes a team to draw up detailed, implementable strategies that give CCOs more strategic direction on economic development.	A report will be provided in August 2021.
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. Results will be presented in workshops in June and October 2021.
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 2021.
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 2021.
Letters of Expectation CCO Governance and External Partnerships	Council issues an annual 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 2021/2022 letters of expectation. A report will be provided in December 2021.
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 2021.

Completed

Lead Department	Area of work	Committee Role (decision and/or direction)	Decision
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.	To consider POAL’s final statement of corporate intent.	The draft statement of corporate intent was received by the Governing Body on 27 August 2020. The Council Controlled Organisation Oversight Committee approved POAL’s final statement of corporate intent. (Resolution number CCO/2020/33)
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 included 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 from the amalgamation covering the period 1 December 2020 to 30 June 2021.	The Council Controlled Organisation Oversight Committee approved 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. (Resolution number CCO/2020/27)
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.	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 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 presented to Governing Body at a workshop on 19 August 2020. CRLL attended the Committee meeting in October 2020 for a discussion on end of year results. 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 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.	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)
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.	Workshops were held as follows – ATEED - February 2020 Auckland Transport - March 2020 Watercare - July 2020 (Governing Body workshop)

Lead Department

Area of work

Committee Role

(decision and/or direction)

Decision

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.

To consider POAL’s final statement of corporate intent.

The draft statement of corporate intent was received by the Governing Body on 27 August 2020.

The Council Controlled Organisation Oversight Committee approved POAL’s final statement of corporate intent.

(Resolution number CCO/2020/33)

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 included 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 from the amalgamation covering the period 1 December 2020 to 30 June 2021.

The Council Controlled Organisation Oversight Committee approved 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.

(Resolution number CCO/2020/27)

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.

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

CRLL attended the Committee meeting in October 2020 for a discussion on end of year results.

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 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.

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)

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.

Workshops were held as follows –

ATEED - February 2020

Auckland Transport - March 2020

Watercare - July 2020 (Governing Body workshop)

Council Controlled Organisation Oversight Committee

23 February 2021

Extension of Te Puru Community Charitable Trust Organisation Exemption

File No.: CP2021/00144

Te take mō te pūrongo

Purpose of the report

1. To consider extending the exemption from council-controlled organisation requirements for the Te Puru Community Charitable Trust (Te Puru) to 2024.

Whakarāpopototanga matua

Executive summary

2. Te Puru is a legacy council-controlled organisation (CCO) of Auckland Council which operates a community recreation centre at Te Puru Park at Beachlands/Maraetai. Te Puru leases this facility from council.

3. Te Puru has been operating with an exemption from the CCO requirements of the Local Government Act 2002 since 2015.

4. Each exemption lasts for three years. At the end of that period council must consider whether the exemption should continue.

5. An exemption means that Te Puru does not need to prepare a Statement of Intent (SOI) or report semi-annually to the Governing Body as non-exempt CCOs are required to do.

6. Te Puru receives council funding of approximately $325,000 per year. This funding sits within the Franklin Local Board budget. A funding agreement has been entered into with Te Puru, which contains performance measures against which Te Puru’s performance is assessed.

7. Staff and the local board believe that the lease and funding agreement contain all necessary accountability and oversight measures, and that a SOI would be redundant. The funding agreement keeps Te Puru accountable to the local board and offers better local oversight of services than if Te Puru reported to the Governing Body.

Ngā tūtohunga

Recommendation/s

That the Council Controlled Organisation Oversight Committee:

a) approve an exemption from council-controlled organisation requirements for Te Puru Community Charitable Trust until 2024.

Horopaki

Context

8. Te Puru is a CCO of Auckland Council. It was established as a CCO by Manukau City Council in 2002 to provide recreational and cultural community services, particularly for those who live and work in the Clevedon area. It is governed by a trust board in partnership with Counties Manukau Sports Foundation (CMSF).

9. Te Puru is a CCO because Auckland Council appoints the majority of its trustees, in consultation with the chair of the trust and CMSF. It is also considered a public entity (requiring audit by the Office of the Auditor-General or its appointee), due to its CCO status.

10. The Local Government Act 2002 allows councils to exempt CCOs from certain requirements of that status, including preparation of a Statement of Intent (SOI), and semi-annual reporting to the Governing Body. The CCO audit requirement is not affected by exempt status.

11. Exemption was first approved by the Council Controlled Organisations Governance and Monitoring Committee at their 3 February 2015 meeting (Resolution COU/2015/4).

12. Since that time, Te Puru has been operating under this exemption without incident and wishes to retain this status.

13. Te Puru receives approximately $325,000 in operational funding per year from Auckland Council. This is provided through a funding agreement with the Parks, Sports and Recreation department. This budget sits with the Franklin Local Board.

14. The terms of the funding agreement, including the performance measures and reporting requirements are considered to provide accountability that is at least equivalent to the accountability that would be required for a non-exempt CCO.

Tātaritanga me ngā tohutohu

Analysis and advice

15. When considering whether or not to exempt a CCO, the Local Government Act 2002 requires council to consider the following matters:

a) the nature and scope of the activities provided by the organisation; and

b) the costs and benefits, if an exemption is granted, to the local authority, the council-controlled organisation, and the community.

16. There is the option of removing the exemption which would trigger the preparation of a SOI. However, that would not provide a higher level of accountability than is already embodied in the funding agreement, so a SOI would be redundant.

17. Any reporting against the performance targets and deliverables contained in an SOI would go to the Governing Body. Under the Act, the Governing Body is responsible for the governance of CCOs.

18. As Te Puru is a provider of local recreation services, it is believed that oversight of those services is best provided by the local board and locally-based Parks, Sports and Recreation staff.

19. The performance targets and deliverables that would be contained in a SOI would be substantially similar (if not the same) as is currently in the Te Puru funding agreement. Therefore, the SOI mechanism would not provide any additional accountability.

20. Staff are of the view that it is more appropriate that Te Puru be accountable to the local board via a funding agreement, than being accountable to the Governing Body through an SOI. It is local board funding that is provided to Te Puru, therefore it is more appropriate that Te Puru is accountable to the local board.

21. There is nothing in the scale or scope of Te Puru’s activities that would suggest that it should not be exempted.

22. Staff are of the view that there would be no additional benefit gained by requiring Te Puru to prepare a SOI. Meeting the CCO requirements of the Local Government Act 2002 would also impose compliance costs on Te Puru, for no additional benefit.

Tauākī whakaaweawe āhuarangi

Climate impact statement

23. Auckland Council’s Te-Tāruke-ā-Tāwhiri: Auckland’s Climate Plan was adopted in December 2020 setting out the priority action areas to deliver our goals to reduce emissions and adapt to the impacts of climate change.

24. CCOs are responsible for services regionally and sub-regionally as is the case for Te Puru. All CCO’s must be accountable for ensuring their planning and funding decisions reflect the priorities outlined in Te-Tāruke-ā-Tāwhiri.

25. Directors and trustees are asked to commit to integrate Te-Tāruke-ā-Tāwhiri into their strategies, operations and decision-making processes.

Ngā whakaaweawe me ngā tirohanga a te rōpū Kaunihera

Council group impacts and views

26. The decision to exempt Te Puru does not have an impact on the performance of the council group.

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

Local impacts and local board views

27. At its meeting of 23 February 2018, the Franklin Local Board supported the continuation of the exemption of the Te Puru Community Charitable Trust from council-controlled organisation status until 2021 (Resolution FR/2018/62).

28. A report seeking endorsement to exempt Te Puru from CCO status until 2024 will be considered at the Franklin Local Board on 23 February 2021 (9:30am). Staff will update the committee of the outcome at the meeting on the same day.

Tauākī whakaaweawe Māori

Māori impact statement

29. Te Puru undertakes a range of activities that contribute to Māori well-being, about which it reports on as part of its six-monthly reports. Through reporting against the terms of its funding agreement and engagement with Franklin Local Board, Te Puru can continue to inform the council of its contribution to Māori well-being.

30. The decision whether or not to exempt Te Puru has no impact on Māori outcomes, either positive or negative.

Ngā ritenga ā-pūtea

Financial implications

31. Granting the exemption does not affect council funding as accountability for that funding is governed by the funding agreement between Te Puru and the Franklin Local Board.

32. Council’s Governance department Commercial Manager has approved the financial budget for these appointments.

Ngā raru tūpono me ngā whakamaurutanga

Risks and mitigations

33. The main risk associated with Te Puru is that it will not achieve the targets set for it through its funding agreement. This risk is mitigated considerably by the terms of the funding agreement which allow council to withhold funding for any breach of terms of the agreement. The lease terms also protect council’s financial interest in the facility and land under lease.

34. A decision not to exempt Te Puru would not help mitigate any known risks.

Ngā koringa ā-muri

Next steps

35. Te Puru will be notified of the committee’s decision.

Ngā tāpirihanga

Attachments

There are no attachments for this report.

Ngā kaihaina

Signatories

Author	Josie Meuli - Senior Advisor
Authoriser	Alastair Cameron - Manager - CCO Governance & External Partnerships

Council Controlled Organisation Oversight Committee

23 February 2021

CCO Review: Implementation Programme

File No.: CP2020/19353

Te take mō te pūrongo

Purpose of the report

1. To provide an update on the implementation programme for the Council-controlled Organisations (CCO) Review (The Review).

Whakarāpopototanga matua

Executive summary

2. Significant progress has been made implementing the recommendations of the CCO Review, with four recommendations now complete, and two-thirds underway.

3. The key change to the CCO model has been the merger of Regional Facilities Auckland (RFA) and Auckland Tourism, Events and Economic Development (ATEED) to form Auckland Unlimited.

4. To improve accountability, the content of the 2021-2024 Statements of Intent will be more streamlined and consistent. An executive level position in council has responsibility for overall relationships with CCOs and a project manager to oversee implementation has also been appointed.

5. Improvements to collaboration and communication between CCOs is well underway. This has included more meaningful engagement at board and executive levels.

6. Ten recommendations have not progressed to or beyond scoping stage, due to capacity issues, but are on track to be initiated this year.

Ngā tūtohunga

Recommendation/s

That the Council Controlled Organisation Oversight Committee:

a) receive the update on the implementation programme for the Council-controlled Organisations Review.

Horopaki

Context

7. The Governing Body resolved in August 2020 (resolution GB/2020/89) the following:

d) agree that the chief executive appoints a Council-controlled Organisations Review implementation lead.

e) agree that a joint Council-controlled Organisations /council project implementation team is established to develop the work programme for implementing approved recommendations and overseeing implementation.

f) agree that the implementation team report on the programme and proposed approach and timing to the Council-controlled Organisations Oversight Committee within three months.

8. In November a memo was circulated to the CCO Oversight Committee providing an update on the implementation programme and governance approach. Council and CCOs have appointed members from their executive teams as leads to direct and implement the work programme. The implementation lead is Alastair Cameron, Manager of CCO Governance and external partnerships. A programme lead has recently been appointed to manage the implementation programme.

9. Staff have continued to work collaboratively with CCO staff over the last few months to scope and plan implementation. In developing the programme, the focus has been ensuring the approach taken is not a tick box exercise. The Review’s recommendations require a significant change in culture and approach to working together at the strategic and operational level. This will take time to implement. Many of the recommendations are interrelated.

Tātaritanga me ngā tohutohu

Analysis and advice

Programme Approach

10. Oversight and governance of the programme is illustrated in the diagram below.

11. Implementing the CCO Review is a key priority for the chief executive and has been included in his key performance measures and is a focus at the CCO chief executives’ fortnightly meetings.

Figure 1: CCO Review implementation oversight and approval

Progress in implementing the Review’s recommendations

12. The Review made 64 recommendations. The report to the Governing Body on 27 August 2020 divided the recommendations into four categories:

· twenty-six recommendations that could be actioned now, those that the Governing Body approved for implementation by council.

· twenty-six recommendations that require CCOs and the council to work together or relate directly for CCOs.

· nine recommendations that require further analysis.

· three recommendations that require local board input and consideration.

13. A summary of progress and next steps is provided below.

Recommendations approved by the Governing Body for implementation by council

Progress

· Auckland Unlimited was formed on 1 December 2020 in the merger of RFA and ATEED. (Review recommendation 1 (R1))

· Changes have been made to the draft accountability policy so that the council can assess how well Watercare and AT give effect to the growth strategy in their asset management plans. (R16, R29)

· Council and CCO teams have worked collaboratively and using common criteria on capex prioritisation to support advice to the LTP 2021- 2031. (R21)

· A new Statement of Intent template and process is commencing in 2021. (R23)

· The council has advised CCOs on the focus for risk reporting in quarterly reports and is developing a common risk framework. (R19, R24)

· Phil Wilson has been appointed as Governance and CCO Partnerships Director with executive level responsibility for day-to-day relationship management with CCOs. (R25)

· As part of the review of the elected members code of conduct, a policy and protocol has been developed for the sharing of confidential information between council and Governing Body members and once confirmed will form the basis of the protocol for CCOs. It is important to note that this is information that would be withheld from the public under the Local Government Official Information and Meeting Act. (R32)

· A schedule of regular meetings between CCO chairs and between council and CCO executives has been established. (R48, R49)

· The Mayor and Deputy Mayor have written to CCOs requesting that CCO chief executives and executives’ job descriptions include requirements about collaborating with council. (R51)

Next period

· Continuing to develop a new strategic framework and processes that involve the council group, including solutions to address bringing together finance and strategy and working as a council family. (R21)

· Developing a new statement of expectations, due to be adopted May 2021. (R22) Governance manual and no surprises policies to be updated afterwards. (R29, R31)

· CCOs to provide draft statements of intent using new template in April 2021. (R23)

· Agenda programme to be developed for meetings between chairs and executives. (R48, R49)

Recommendations that require CCOs and council to work together, or relate directly for CCOs

Progress

· AT and council staff have jointly prepared the draft regional land transport plan. (R4)

· AT and the council have initiated discussions with the Ministry of Transport and the New Zealand Transport Agency on how to streamline funding processes. (R7)

· A project to improve consent timelines between the council, Watercare and AT kickstarted in October 2020. Areas for improvement identified include the experience for applicants, sequencing of approvals, aligning standards, clarifying roles and supporting shared accountability and better communication across the council whanau. (R17, R18)

· As part of the Emergency Budget and addressing the Review’s recommendations, Panuku has reduced its overheads and is adopting a more focused approach to redevelopment. Panuku has invited council to undertake a peer review of this work. (R12)

· As part of the Emergency Budget, Panuku and the council have worked together on property rationalisation (R11). The council is still to scope its property strategy and whether to combine all property services in one place. (R14)

· The council has completed the Kia Ora Tāmaki Makaurau - Māori Outcomes Framework and guidance for CCOs on Māori responsiveness is being developed. (R36, R37, R38, R39). Māori Outcomes were used as a lens across all CCO and council LTP investment areas.

· AT staff contact information will join the combined staff directory of Auckland Council, Auckland Unlimited and Panuku on the intranet (Kotahi) in February 2021. (R41)

· Joint communication to the public about urban development and transport infrastructure between the council, AT and Panuku is underway as recently demonstrated in Avondale Town Centre, Takapuna and Wynyard Quarter. (R46)

· CCO chief executives and the council’s chief executive are meeting fortnightly to deal with any common or significant problems, risks or developments and oversee the Review implementation. (R47)

· The Mayor has written to CCOs to providing the council example of council job descriptions which outline the requirement of staff to honour te Tiriti o Waitangi, accord value to te ao Māori (the Māori world), support kaitiakitanga, be responsive to the needs of the Māori community and help their team’s Māori responsiveness journey. (R52)

· Brand guidelines are being developed on using the pōhutakawa logo across the council family. A workshop with the CCO Oversight committee is scheduled in February 2021. (R57)

· A Shared Service Review is being scoped. (R61)

Next period

· The draft regional land transport plan will be presented to the Planning Committee for endorsement in March. (R4)

· Implementation phases for consenting improvements (R17, R18)

· Work on common values and expectations of staff and management behaviour that collectively set the tone for the broader culture of all council organisations. (R44)

Recommendations that require local board input and consideration

Progress

· AT has involved council and Panuku staff to review how it designs, consults on, funds and implements minor capital works, including how it involves local boards in the design of its annual work programme. A discovery workshop was held in November 2020 and a design sprint completed February 2021. (R6)

· A reset of CCO engagement with local boards has started, with a workshop in December 2020 involving CCO local board liaison teams and local board chairs, with further sessions planned. (R34)

Recommendations that required further analysis

Progress

· As recommended in the Review, a review of the funding model for Panuku was considered in a workshop for the long-term plan where it was decided to not change it in the forthcoming 10-year budget 2021-2031(long-term plan). This can be considered in the next 10-year budget. (R8)

Overall implementation status

14. The following table provides an update on progress. A summary of progress status for all Review recommendations is provided as Attachment 1.

Table 1: Status of the Review recommendations

Status	Number of actions
Complete	4
Underway	37
Further work needed to establish scope and resources	10
To be scoped – no further work required at this stage	13

15. The four completed recommendations are the RFA/ATEED merger (R1), new Statement of Intent template (R23), Governance and CCO Partnerships Director role (R25), and chief executive group meetings (R47).

16. The Review called for the Liaison Councillor role with CCOs to be reviewed in 2021 (R28). Staff consider that it would be more effective to conduct the review in early 2022, in recognition of the impact of COVID-19 in the past year, just as these roles were established. Under this updated timeframe the review can better reflect the practices that have emerged and inform the suggested approach for the next term of council.

17. A number of recommendations will be initiated later in 2021. These include planning councillor induction (R26, R27) and those dependent on other recommendations and actions being completed.

18. Recommendations that are still being scoped include:

· the recommendation for the Auckland Unlimited to explore joint management and operation of the city’s four stadiums (R2). Auckland Unlimited’s chief executive has been invited to participate in the Eden Park Trust board’s planning workshop.

· The recommendation for council to explore with Auckland Museum and the Museum of Transport and Technology Auckland (MOTAT) bringing both institutions into the merged entity (R3). As agreed as part of the cultural heritage review (10 September 2020), Auckland Unlimited’s chief executive is talking to MOTAT about principles for future engagement. The Rangatira and staff working groups are leading the engagement with Auckland Museum about its future governing arrangements.

· The strategy capability action is being picked up as part of a wider operating model review and will be reported as part of progress against the operating model programme. (R20)

· CCOs appointing a lead agency when working jointly on projects. (R45)

· CCOs reporting regularly on the nature of the complaints they receive and how long they take to resolve them. (R54)

19. Capacity constraints have limited the ability to progress the following recommendations:

· Auckland Transport (AT) and the council forming a working group to clearly delineate their bylaw-making powers. (R5)

· the council assuming responsibility from Panuku for disposing of non-service properties (excluding those in the CCOs’ own unlock-and-transform areas). (R11)

· the council giving CCOs guidance on how to balance public and commercial interests and amends their constitutions to make explicit that each CCO must meet both objectives. (R42).

Tauākī whakaaweawe āhuarangi

Climate impact statement

20. Climate impacts are considered as part of individual recommendations.

Ngā whakaaweawe me ngā tirohanga a te rōpū Kaunihera

Council group impacts and views

21. The council group is working collectively to implement the Review’s recommendations as noted throughout the body of this report.

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

Local impacts and local board views

22. Local board impacts and views are addressed when implementing individual recommendations, including the development of regional strategies.

23. As discussed in the section on recommendations that require local board input and consideration, CCOs are working with local boards to improve how they engage with one another (R34). This output of this will input into how CCOs consult the community and implement local projects (R53).

Tauākī whakaaweawe Māori

Māori impact statement

24. The Review made six recommendations to improve the use of mechanisms to ensure CCOs comply with their obligation to Māori at governance and senior management levels. This included the urgent completion of the Māori outcome framework. Now that the outcome framework has been finalised, the focus is currently on providing guidance so that CCOs can update their Māori responsiveness plans. There are links to the Tāmaki Makaurau Mana Whenua Forum work programme and initial discussions with the incoming Independent Māori Statutory Board Chief Executive have been held on opportunities to work together.

Ngā ritenga ā-pūtea

Financial implications

25. An estimated $5 million annualised operating costs saving was identified from the merger of ATEED and RFA. Actual savings are being worked through as part of the 10-year budget 2021-2031.

26. The business case for shared services will identify operational efficiencies and will be reported to the Governing Body.

Ngā raru tūpono me ngā whakamaurutanga

Risks and mitigations

27. Strong executive commitment and effective collaboration between the council and CCOs will mitigate the main risks associated with the overall implementation. This is set out in the table below.

28. Individual recommendations also have specific risk management approaches.

Description of Risk	Probability			Impact			Risk Response Strategy
Description of Risk	H	M	L	H	M	L	Risk Response Strategy
Budget availability	=			=			Mitigation by executive leadership team commitment
Lack of resourcing		=		=			Mitigation by executive leadership team commitment
Lack of organisational buy-in			=	=			Appropriate governance and management structure that provides clear roles and accountabilities will mitigate this risk. Executive leadership team workstream leads will lead delivery and ensure adequate prioritisation of activity
Deliverables change – scope creep or scope reduction		=			=		Governance structure with appropriate monitoring of the recommendations
Deliverables not met		=			=		Governance structure with appropriate monitoring of the recommendations
Significant change programme underway across the group which inhibits delivery of the Review		=			=		Ensure CCO Review recommendations are embedded in the scoping and implementation of other changes

Ngā koringa ā-muri

Next steps

29. The CCOs will continue to report on their contribution to implementing the Review. as part of their quarterly reporting to the CCO Oversight Committee.

30. The next implementation update report will be provided to the August 2021 CCO Oversight Committee meeting. This will include an update on each of the Review recommendations.

Ngā tāpirihanga

Attachments

No.	Title	Page
a ⇩	CCO Review Implementation - summary of progress	37

Ngā kaihaina

Signatories

Author	Claire Gomas - 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

Date	Subject
9/2/21	Letter of Expectations for 2021-22 - Tāmaki Redevelopment Company

Date	Workshop/Briefing
8/12/20	CONFIDENTIAL: Capital Prioritisation Update

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