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

 

Date:

Time:

Meeting Room:

Venue:

 

Tuesday, 18 May 2021

2.00pm

Reception Lounge, Level 2

Auckland Town Hall

301-305 Queen Street, Auckland

 

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

 

OPEN AGENDA

 

 

MEMBERSHIP

Chairperson

Deputy Mayor Cr Bill Cashmore

 

Deputy Chairperson

Cr Angela Dalton

 

Members

Cr Josephine Bartley

Cr Richard Hills

 

Cr Dr Cathy Casey

Cr Tracy Mulholland

 

Cr Fa’anana Efeso Collins

Cr Daniel Newman, JP

 

Cr Pippa Coom

Cr Greg Sayers

 

Cr Linda Cooper, JP

Cr Desley Simpson, JP

 

Cr Chris Darby

Cr Sharon Stewart, QSM

 

Cr Alf Filipaina

IMSB Chair David Taipari

 

Cr Christine Fletcher, QSO

Cr Wayne Walker

 

Mayor Hon Phil Goff, CNZM, JP

Cr John Watson

 

IMSB Member Hon Tau Henare

Cr Paul Young

 

Cr Shane Henderson

 

 

(Quorum 11 members)

 

 

 

Duncan Glasgow

Kaitohutohu Mana Whakahaere /
Governance Advisor

 

13 May 2021

 

Contact Telephone: (09) 890 2656

Email: duncan.glasgow@aucklandcouncil.govt.nz

Website: www.aucklandcouncil.govt.nz

 


Terms of Reference

 

Responsibilities

 

The purpose of the committee is to:

 

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

·         set policy relating to CCO governance

·         approve CCO Statements of Intent

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

 

Key responsibilities include:

 

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

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

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

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

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

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

 

Powers

 

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

Except:

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

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

(ii)        Power to establish subcommittees.

 


 

Auckland Plan Values

 

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

 

 


 

 

Exclusion of the public – who needs to leave the meeting

 

Members of the public

 

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

 

Those who are not members of the public

 

General principles

 

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

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

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

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

 

Members of the meeting

 

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

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

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

 

Independent Māori Statutory Board

 

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

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

 

Staff

 

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

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

 

Local Board members

 

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

 

Council Controlled Organisations

 

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

 

 


Council Controlled Organisation Oversight Committee

18 May 2021

 

ITEM   TABLE OF CONTENTS                                                                                         PAGE

1          Apologies                                                                                                                        7

2          Declaration of Interest                                                                                                   7

3          Confirmation of Minutes                                                                                               7

4          Petitions                                                                                                                          7  

5          Public Input                                                                                                                    7

6          Local Board Input                                                                                                          7

7          Extraordinary Business                                                                                                8

8          CCO Review: Implementation Programme Update                                                   9

9          Substantive Council-controlled Organisations and Ports of Auckland Limited - Quarter 3 Performance Reports ending March 2021                                               25

10        Approval of shareholder comments on draft CCO Statements of Intent 2021-2024                                                                                                                                     115

11        Highbrook Park Trust Disestablishment                                                                 327

12        Liaison councillors' updates                                                                                    331

13        Summary of Council Controlled Organisation Oversight Committee information memoranda and briefings (including the forward work programme) - 18 May 2021                                                                                                                                     333

14        Consideration of Extraordinary Items

 


1          Apologies

 

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

 

 

 

2          Declaration of Interest

 

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

 

 

 

3          Confirmation of Minutes

 

That the Council Controlled Organisation Oversight Committee:

a)         confirm the ordinary minutes of its meeting, held on Tuesday, 23 March 2021, as a true and correct record.

 

 

 

 

4          Petitions

 

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

 

 

 

5          Public Input

 

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

 

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

 

 

 

6          Local Board Input

 

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

 

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

 

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

 

 

7          Extraordinary Business

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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


Council Controlled Organisation Oversight Committee

18 May 2021

 

CCO Review: Implementation Programme Update

File No.: CP2021/05861

 

  

 

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.       There has been good progress to implement the recommendations of the Review. This has relied on collaborative activity across the council group.

3.       An additional eight recommendations are on track to be completed by June 2021. These are the Regional Land Transport Plan (RLTP), accountability improvements including a new statement of expectations and risk reporting, group branding, and a new procurement policy.

 

Ngā tūtohunga

Recommendation

That the Council Controlled Organisation Oversight Committee:

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

 

Horopaki

Context

4.       The Review’s recommendations should be considered as a package. Many of the recommendations are interrelated. The intent is to improve accountability to the community and the council. Implementation is focused on developing more collaboration, trust and genuine change in behaviour to deliver the improvements.

5.       Updates on the implementation programme have previously been provided to the committee in November 2020, and in February and March 2021.

Tātaritanga me ngā tohutohu

Analysis and advice

6.       Seventy per cent of the sixty-four Review recommendations are underway and four are complete. 

7.       Eight recommendations have not progressed to or beyond scoping stage, but will commence this year.

Chart 1: Status of Review recommendations 

(..) Indicates change since March update to reflect work that is now underway to plan governing body visits to CCOs (rec 27), strategy development (20), reporting complaints (54) and planning of the elected members survey (60)

8.       A progress update on each Review recommendation is provided in Attachment A. 

9.       Of the 11 recommendations with a RAG of Amber, this is mainly because they will not be completed by June 2021 as targeted.

Recent progress

Auckland Unlimited

10.     Auckland Unlimited had a workshop with the CCO Oversight Committee on 27 April 2021 which sought guidance on the work proposed to advance the joint management of the city’s stadiums and for providing advice to the council on Auckland’s future needs for stadiums and investment required.

11.     The workshop with Auckland Unlimited also discussed longer-term opportunities to improve coordination amongst cultural institutions for more efficient use of funding, more investment and greater collaboration. It is the council’s responsibility to lead the conversations with Auckland Museum, to seek change from that organisation, and from government.

Auckland Transport

12.     Auckland Transport has undertaken a design sprint to review its project development processes for small projects, including the time taken to design the work, consult the community on that design and obtain the necessary consents.

13.     Improvements identified by Auckland Transport include a more efficient project pipeline to reduce delays, the introduction of a strengthened internal project review process led by the Chief Engineer’s group and more flexibility to deal with unplanned work. A further sprint is planned to look at Auckland Transport’s engagement with local boards.

14.     Following the Planning Committee endorsement of the RLTP in June it will be presented to the Auckland Transport board for approval in June 2021.

Eke Panuku

15.     A property ownership framework is being scoped for the council organisation to determine where responsibility for property functions sits within the organisation. Once this is determined, responsibility for the process to decide which non-service properties to sell (excluding unlock and transform areas) can then transfer to council.

Watercare

16.     Work on the water strategy is underway for the duration of the 2021 calendar year. As elements of the strategy are completed, they are brought to the Environment and Climate Change Committee. In April the committee adopted per capita water consumption targets for 2030 and 2050.

17.     Council is updating the Accountability Policy through the 10-year budget requiring Watercare and Auckland Transport submit asset management plans (AMPs) to council annually. Auckland Transport and Watercare now have a common asset management system which enables improved AMP development, sharing and reporting.

18.     Progress on the 'Better Consents Journey' is continuing across the council family. A collaborative effort between council, Watercare and Auckland Transport investigated key drivers for change, specific problem areas, practices and recommendations for improvement.

19.     The three drivers for improvement are:

·    Improve quality of consent applications by engaging participants in the benefits of effective consenting in a way meaningful to them, and profile good consenting practice.

·    Be accountable and improve the user experience so applicants understand who, how and where in the process they are up to, and when the consent decision will be made. Enable shared accountability across the council whanau, build team culture and use progress information to prioritise ongoing improvement.

·    Clarify roles and process and confirm service expectations and resource to meet them. Review and enhance the pre-application process to inform parties about content and process, and standardise consent conditions. An Asset Group Resolution Forum with key leaders and decision-makers from Watercare, Auckland Transport and council teams has been established to act as a consent resolution forum for applications that are being stalled by conflicting asset requirements.

Accountability

20.     Strategic capability is being addressed in the council's operating model review with the water strategy and economic development action plan underway.

21.     The statement of expectations (SoE) covers how CCOs interact with council, statutory obligations and other Auckland Council specific expectations. Local boards, Independent Māori Statutory Board and CCO Boards are providing feedback on the draft SoE. The SoE will be workshopped with the CCO Oversight Committee in May 2021 and reported for adoption in June 2021. 

22.     Good progress has made on the recommendations for a more meaningful way for CCOs and local boards to work together. Feedback has been provided by local board chairs and chairs will have an opportunity to give further feedback on the approach at the 17 May Chairs’ Forum.

 

 

23.     The primary output of the recommendation to reset how CCOs and local boards engage with one another will be a new combined, engagement plan across the four CCOs for each local board. The new engagement plan is designed to address issues raised in the review:

·    It will document key contacts, including senior CCO representatives of the organisation well placed to quickly respond to and resolve local concerns.

·    It will be developed at a workshop between senior staff from each of the four CCOs, local board members, and local board services staff. The workshops are being scheduled May to July 2021 and will aim to document a work programme for the year, with the degree of engagement the local board expects to have in each project or programme and agree an approach for community input.

·    The work programmes for each of the CCOs will be documented together for each local board area. Sharing this across the council family (including with other council departments) will help to highlight opportunities to coordinate public consultation.

24.     The engagement plan is the first step towards ensuring the communication of clear, up to-date information from CCOs to local boards on projects in their area. Feedback from staff and local board members has been clear that a joint six-monthly report from the four CCOs, as recommended by the Review, would not add value for elected members, due to the different levels of engagement each local board has with each CCO. Instead of a combined report the focus is on consistent reporting across the four CCOs.

25.     The council and CCO chief executives are to meet with the Independent Māori Statutory Board chief executive on a quarterly basis.

26.     Auckland Transport staff contact information will join the combined staff directory of Auckland Council, Auckland Unlimited and Eke Panuku on the intranet (Kotahi). Watercare is supportive in principle and is scoping requirements. Access to the intranet is also important for sharing information and material for staff training.

Culture

27.     As recommended by the review, the communications teams of the council, Auckland Transport and Eke Panuku are working together on significant joint communications programmes on urban development and transport. Existing collaborative processes and relationships are also being strengthened through more deliberate planning to identify opportunities to work together and the group wide development of the brand framework and guidelines.

28.     Eke Panuku convened a group workshop in April 2021 on the current approach when council and CCOs are working in an area. Potential improvements identified include better visibility of programmes across the group and processes for escalation and sequencing of activity. 

29.     Development of learning modules for council and CCO staff induction on the CCO model is underway with input from across the council group.

30.     CCOs and the council have shared current complaints handling practice. The next step is to identify where improvements and greater consistency should be focused. CCOs are also working on the inclusion of a KPI on complaint handling.

31.     The Quality Advice Programme is developing summary collateral on ways CCOs can embed the Quality Advice Standards and what support the programme can offer. Eke Panuku is holding a quality advice workshop in May 2021 and Watercare is aiming for a workshop in June. CCOs are considering participating in the NZIER review of 2021 reports to elected members for baseline feedback and insights.

32.     A workshop was held in March 2021 of the Shared Services project council/ CCO leadership team on principles and the development of the business case for shared services.

33.     An update of the group remuneration policy has been developed with input from CCOs. The policy will be presented for the approval of the Governing Body in June/July 2021.

34.     A new group procurement policy will be discussed at a workshop with the Strategic Procurement Committee and will go to Finance and Performance Committee for approval by June 2021.

Tauākī whakaaweawe āhuarangi

Climate impact statement

35.     Climate impacts are considered through the implementation of individual recommendations.

Ngā whakaaweawe me ngā tirohanga a te rōpū Kaunihera

Council group impacts and views

36.     The council group is working collectively to implement the recommendations of the Review.

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

Local impacts and local board views

37.     Local impacts and local board views are considered when implementing individual recommendations, including the development of regional strategies.

38.     CCOs are working with local boards to implement recommendations to improve local board engagement, implementation of local projects and community consultation (see recommendations 34, 6, 53).

Tauākī whakaaweawe Māori

Māori impact statement

39.     The Review made seven recommendations to improve the use of mechanisms to ensure CCOs meet their obligation to Māori at governance, senior management and staff levels. With the completion of the Kia Ora Tāmaki Makaurau Māori Outcomes Performance Management framework, the focus is currently on providing guidance for CCOs to update their Māori responsiveness plans and better coordinate engagement with Māori entities. Ngā Mātārae have been convening staff from council, CCOs and the Independent Māori Statutory Board secretariat to progress the recommendations.

40.     The council/CCO chief executives group has initiated a quarterly meeting with the Independent Māori Statutory Board chief executive focused on Māori outcomes. The chief executives will provide oversight of the implementation of Review recommendations on obligations to Māori. The hui will also directly address recommendation 39 of the review which was for CCOs to engage directly and at a more senior level with the Board to work on joint initiatives that benefit Māori.

Ngā ritenga ā-pūtea

Financial implications

41.     There are no additional costs from the committee receiving this report on the implementation programme for the Review.

Ngā raru tūpono me ngā whakamaurutanga

Risks and mitigations

42.     The most significant risks have been recorded as lack of budget, resources and organisation buy-in. Strong executive commitment and effective collaboration between the council and CCOs will mitigate these main risks associated with the implementation programme.

43.     Individual recommendations also have specific risk management approaches.

Ngā koringa ā-muri

Next steps

44.     CCOs report on their contribution to implementing the Review in their quarterly reporting to the CCO Oversight Committee.

45.     Regular updates on the Review programme will be provided to the CCO Oversight Committee.

 

Ngā tāpirihanga

Attachments

No.

Title

Page

a

CCO Review implementation - progress by recommendation

15

      

Ngā kaihaina

Signatories

Author

Trudi Fava - CCO Programme Lead

Authoriser

Alastair Cameron - Manager - CCO Governance & External Partnerships

 


Council Controlled Organisation Oversight Committee

18 May 2021

 

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Council Controlled Organisation Oversight Committee

18 May 2021

 

Substantive Council-controlled Organisations and Ports of Auckland Limited - Quarter 3 Performance Reports ending March 2021

File No.: CP2021/05360

 

  

 

Te take mō te pūrongo

Purpose of the report

1.       To receive a high-level summary and comments on the substantive Council-controlled Organisation (CCO) and Ports of Auckland Limited (POAL) third quarter reports, for the period ending 31 March 2021.

Whakarāpopototanga matua

Executive summary

2.       Under Auckland Council’s accountability framework, each substantive Council-Controlled Organisation (CCO) must provide a quarterly report to the Council-Controlled Organisation Oversight Committee. The reports for the third quarter of 2020/2021 are contained in Attachments A to E and are measured against the updated 10-year Budget and the 2020-2023 Statements of Intent (SOIs). 

3.       Under the Memorandum of Understanding between POAL and Auckland Council, POAL is to provide a quarterly report to the council as shareholder.   The report for third quarter of 2020/21 is contained in Attachment F.

4.       Despite the ongoing COVID-19 disruption, the Auckland Council Group delivered a satisfactory performance for the nine months to 31 March 2021. The capital delivery of $1.7 billion, was a decrease of six per cent or $114 million compared with the same period last year. The net direct operating result was $309 million favourable compared to the Emergency Budget.

5.       Auckland Transport key indicators for public transport and active modes remain significantly affected by the impact of COVID-19 on travel patterns. In particular, boardings on the rapid and frequent network and rail boardings (also affected in 2020 by Kiwirail works). 

6.       The majority of performance measures for the remaining substantive CCOs are generally on track, noting that a number of performance measures will be calculated/measured in the last quarter of the 2020/2021 financial year.

7.       For six of its seven financial performance indicators, POAL’s quarter three year-to-date results are on track to achieve the annual targets for 2020/21.  For the non-financial performance indicators in the report, two of these will be reported at year end and two others are on track.  The remainder of POAL’s non-financial performance indicators in the report are not on track.  POAL has failed to achieve the targets in the ‘Safe and empowered people’ outcome. 

 

Ngā tūtohunga

Recommendation/s

That the Council Controlled Organisation Oversight Committee:

a)      receive the third quarter reports of the substantive Council-controlled Organisations and Ports of Auckland Limited, provided as attachments A to F of the agenda report.

Horopaki

Context

8.       Each substantive CCO must provide a quarterly report to the Council-Controlled Organisation Oversight Committee. They are required to:

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

·        provide a forecast of the CCO’s performance

·        identify the cause of major variances

·        highlight major achievements for the quarter

·        signal any potential or developing issues.

9.       The reports for the third quarter of 2020/2021 are contained in attachments A to E.

10.     Under the Memorandum of Understanding between POAL and Auckland Council, POAL is to provide a quarterly report to the council as shareholder.  Council and POAL have agreed a format similar to the quarterly report for substantive CCOs. The report for the third quarter of 2020/21 is provided at attachment F.

Tātaritanga me ngā tohutohu

Analysis and advice

Auckland Council Group

Financial results

11.     The Auckland Council Group has delivered a positive performance for the nine months to 31 March 2021. The Auckland Council Group and parent financial results will be presented at the Financial and Performance Committee meeting on 20 May 2021. The following is a summary of the group results.

12.     Good progress is being made with capital investment of $1.7 billion over the nine-month period. This is a decrease of six per cent or $114 million as compared with the same period last year and represents 91 per cent of budgeted delivery despite the COVID-19 disruptions. The Auckland Council Group is unlikely to achieve the full year capital investment budget of $2.6 billion. Auckland Council and Auckland Transport made up the largest shortfall against budget. Both were behind budget due to late adoption of the emergency budget, with Auckland Transport also experiencing delays in construction of a critical path of the Stage 2 Eastern Busway project due to the COVID-19 Alert Level 3 lockdown in August 2020.

13.     The group achieved a positive operating performance result for the nine-month period. Direct revenue of $1.6 billion was $144 million ahead of budget, and direct expenditure of $2 billion was $165 million favourable to budget. Included in direct revenue is a $89 million surplus against budget related to Watercare’s infrastructure growth charges. Overall, total net direct operating expenditure was $309 million favourable to budget.

Auckland Transport

Financial results

14.     Auckland Transport had a favourable year-to-date net operating result of $93 million. A favourable variance was targeted to support un-forecasted COVID-19 lockdowns and the full year result is expected to be significantly favourable at year end. This favourable variance needs to be considered within the context of the over $130 million additional emergency funding that AT will receive this financial year.

15.     Revenue is $14 million favourable to budget due to higher than anticipated infringement ticket issuances and usage of on and off-street parking ($9 million), and rental, petrol tax, permit, and mooring fee revenue ($19 million) due to faster recovery than expected. This is partly offset by lower than budgeted public transport income ($17 million) due to the impact of COVID-19 on patronage and disruptions caused by KiwiRail track closures.

16.     Waka Kotahi subsidies are $3 million favourable to budget due to top-up of public transport farebox revenue lost from COVID-19, extended until the end of the 2020/21 financial year. The public transport top-up is offset by lower than expected admin subsidy on lower fundable capex and renewal projects.

17.     Direct expenditure is $61 million favourable to budget due to lower than expected special events costs (e.g. AC36), COVID-19 related cleaning and safety equipment costs, unplanned maintenance and streetlight electricity costs.

18.     Capital delivery is $71 million lower than budget. The quarterly report notes that the year-to-date underspend reflects the late release of the emergency budget, timing differences on larger projects (EB1, Puhinui & North Western Interim Bus Improvements) and cost savings (Matakana Link Road, Murphys Road). Staff will contact AT to provide an update on likely achievement of the year-end result. 

19.     Waka Kotahi capital funding revenue is $7 million unfavourable against budget, mainly due to the timing of some capital projects leading to delayed Waka Kotahi funding claims. This is offset by capital funding received from the Crown as part of the post COVID-19 Crown Infrastructure funded capital programme being $12 million favourable to budget. This includes funding for prior year capital spend.

Performance against indicators

20.     Some of the key indicators for key strategic areas, particularly public transport and active modes, remain significantly affected by the COVID-19 impact on travel patterns.  In particular, boardings on the rapid and frequent network, and rail boardings (also affected in 2020 by KiwiRail works). 

21.     While overall public transport boardings are expected to meet the target established in the Emergency Budget for 2020-21, this target was considerably reduced from previous measures. The upcoming draft Statement of Intent does increase the target significantly for 2021/22. It would be useful for Auckland Transport to continue to actively discuss with Council the degree to which lower public transport use reflects permanent changes in usage (such as reduced travel to work because of home working) and the temporary changes that can be boosted to former pre-pandemic levels and beyond.   

Other comments

22.     There are a number of other interesting points in the Auckland Transport report:

·    The AT Hop card trial. It would useful at an appropriate time to understand what its potential might be for future expansion.

·    Mixed public sentiment on tactical urbanism trials. These trials are designed to allow faster delivery of ‘people-friendly’ street changes in urban areas where space is a premium. Staff will explore further with AT how it balances its assessments of the trials, taking into account the original purposes of these trials, measured outcomes, and public reaction.

·    In respect of customer experience, the focus is often on digital methods, which is good.  However, especially in respect of transfers, these need to be supported by physical improvements, such as lighting and shelter so that customers feel they can make quick, easy and safe changes between services. 

Auckland Unlimited

Financial results

23.     Auckland Unlimited’s (AU) net direct expenditure for the year to date is $22.5 million favourable against budget. This reflects the receipt of unbudgeted central government grants and delayed programme expenditure, some of which is now expected to be incurred in Q4 and FY22.

24.     Direct revenue is $5 million favourable for the year to date, mainly due to the receipt of unbudgeted Central Government grants, however this has been partially offset by cancelled events and venue closures due to lockdowns.

25.     Direct expenditure is $17.5 million favourable to budget for the year to date, primarily due to tight control over expenditure in response to COVID-19.  This has included reprioritisation and rephasing of programmes to focus on recovery activities across Auckland Unlimited workstreams.

26.     Some programme expenditure deferrals are timing related and are expected to be incurred in Q4, however further expected merger related costs will need to be deferred into FY22.

27.     Capital delivery is $9.3 million lower than year to date budget. Auckland Unlimited advises that there was a delay in the capital works due to COVID-19 lockdowns (August 2020 and February 2021) and the ability to access products and services from overseas. However these costs are expected to be incurred in Q4 with some capital deferrals to FY22 (approximately $3.7 million).

Performance against indicators

28.     The key performance measures in the current seven-month SOI largely represent legacy ATEED and RFA indicators, which have differing reporting frequencies and methodologies.   Auckland Unlimited is working to implement a more streamlined approach to its performance measurement and reporting framework through the development of its draft 2021-2024 SOI.

29.     Out of a total of 22 performance measures, 14 have been met. For five performance measures, results are not measured/not available this quarter/have not yet been set, and three have not been met.  A number of those not measured/not available are due to baseline targets still to be set.

30.     Of the three performance measures not met, one can be attributed to the impact of the August 2020 and February 2021 lockdowns (the number of people who experience RFA’s arts, environment and sports venues and events).  Alert levels 3 and 2 have restricted people numbers in indoor facilities, therefore impacting on the type of exhibitions/events and shows that could be performed.  The closure of international borders has also restricted performers, artists and sporting teams coming to New Zealand. 

31.     A second performance measure (value of capital improvements to RFA venues) did not meet the target set, however Auckland Unlimited note that capital project work will be completed to budget later in the financial year. 

32.     The final performance measure is on Auckland Unlimited delivered events (Diwali, Lantern, Pasifika and Tāmaki Herenga Waka Festivals) – diversion of landfill waste and number of events to achieve Carbon Zero.  Auckland Unlimited advise that the landfill diversion target was achieved at Tāmaki Herenga Waka Festival but Pasifika results were not available at the time of reporting.  Carbon Zero was not achieved due to the cancellation of the Lantern Festival.

 

 

Eke Panuku Development Auckland

Financial results

33.     Panuku Development Auckland (Eke Panuku), including the commercial property portfolio it manages, reported a $13.5 million favourable net direct expenditure result.

34.     Direct revenue for the quarter is $1.3 million favourable to budget mainly due to COVID-19 related assumptions for reduced income due to hardship in the Emergency Budget, which have not fully realised.

35.     Direct expenditure is $12.2 million favourable to budget mainly due to staff cost savings and delayed recruitment ($2.1 million), spend in Priority Locations is favourable compared against budget by $3.1 million due to the impact of the August COVID-19 lockdown on placemaking activities, coupled with prudent spending in other areas. To date there has been a $4.2 million decrease in Marina expenditure due to the COVID-19 impact on the America’s Cup regatta. Eke Panuku expects about 50 per cent of the favourable expenditure result to date will be realised at year end.

36.     Capital delivery is $15.2 million lower than budget. The variance includes $5.2 million of contamination payments to Waterfront development partners delayed by slower pre-leasing in the property market, a delay of $1.1 million on the Pile Mooring redevelopment due to equipment repairs by the contractor, acquisition of $2.0 million in Avondale delayed by the Public Works Act (PWA) process, and $3.2 million delay in renewals with a number of projects starting in quarter four. A further $3.9 million relates to timing issues across other locations. Eke Panuku forecasts capital spend to be close to budget by year end.

37.     The strategic development fund (SDF) is a credit facility available to take advantage of any acquisition opportunities for town centre regeneration outcomes. The fund is being used this year to purchase properties in Northcote Town Centre. There is a delay as Eke Panuku work through a PWA process on a number of properties, leading to a variance of $5.1 million to date. Eke Panuku is forecasting that the spend will be close to budget by year end.

Performance against indicators

38.     Eke Panuku has 19 performance measures and 12 of the measures are on track or have been met. The results for seven of the measures have not yet been calculated as this will occur at the end of financial year.

39.     General asset sales of $91.4 million have been achieved over the past three years, which is above the three-year target of $72 million. In the year to date, 13 properties have been sold for a value of $37.1 million.

40.     Highlights from strategic focus areas (transform and unlock) include:

·        Eke Panuku has entered into a development agreement with Malaysian Resources Corporation Berhad to construct a mixed-use building over the Āotea Station.

·        Sites have been sold to developers at Flatbush School Road and Handley Ave, Narrowneck to enable new homes to be built.

·        The Ormiston town centre opened on 25 March 2021. The major retail destination is part of a 19-hectare development in south-east Auckland, an area with a rapidly growing population.

·        Wynyard Quarter – the Tiramarama Way stage 2-phase 1 was completed in January 2021 to enable easy pedestrian access through the precinct.

·        Panmure - the Maungakiekie-Tamaki Local Board approved the Clifton Court streetscape concept design in March 2021. This will create an attractive laneway that can be used for local community gatherings and will catalyse adjoining sites.

Watercare Services Limited

Financial results

41.     Watercare’s net direct revenue is $72.4 million favourable against budget.

42.     Direct revenue is $84.5 million favourable against budget mainly due to higher than budgeted infrastructure growth charges (IGCs) and revenue associated with new developments. The impact of COVID-19 on revenue is assessed to be minimal at this stage.

43.     Direct expenditure is $12.1 million unfavourable against budget mainly due to digital project spend budgeted as capex in the SOI but treated as opex in FY21 ($6.2 million).

44.     Capital expenditure is tracking at $544.6 million against a budget of $541.5 million. Most of the overspend is in the Waikato 50MLD project ($12.9 million) as the project is currently ahead of the programme to secure additional water supply. The overspend is partially offset by some minor underspends.

Performance against indicators

45.     Watercare welcome Jon Lamonte as the new Chief Executive from 6 April 2021. Marlon Bridge has been appointed as the Deputy Chief Executive.

46.     Watercare continues to deliver key drought augmentation projects and investigate other options for water supply. They commissioned Aurecon to carry out an independent review on how Watercare handled the drought. They concluded:

"In summary, we found that within the context of its operating environment, Watercare has achieved an appropriate level of water supply security and reliability; and is technically proficient in supply and demand management. The readiness and capability of its people, systems, processes, and assets was adequate to ensure continuity of water supply operations in the lead up period and during the drought.”

47.     The Aurecon report made three recommendations.

i)        Create an Integrated Water Security Programme which clearly sets out for everyone how Auckland will manage its water supply as climate conditions change.

ii)       Being more proactive with Council, businesses and the community to develop a mutual understanding of the roles we all play to ensure water security and how we can support each other to achieve it.

iii)      Work together with Aucklanders to be prepared for future climate conditions and to achieve an agreed level of drought resilience.

48.     The Watercare Board has accepted all the recommendations. The first recommendation is being addressed through existing workstreams, such as the Water Strategy development and update of the asset management plan. Over the next 12 months, Watercare plans to engage with different communities, in partnership with the University of Auckland. Watercare continues to provide elected members with regular updates on the city’s water resilience.

49.     The strategic focus areas are largely on track, with significant progress being made across several project sites for the central interceptor project, and in the areas of water investment. Some delays are noted for wastewater investment. These are for Whenuapai Redhills Package 1, 2 and 3.

50.     Watercare continues to work closely with Auckland Council in responding to the Department of Internal Affairs for information requests relating to the government’s Water Reform programme.

51.     Watercare have provided confirmation of their commitment to the smart meter programme.

52.     Watercare has 14 10-year budget measures and 16 SOI measures. All of the 13 measures that are tracked monthly were met.

53.     Watercare are considering proposing a new metric to replace ‘the percentage of real water loss from Watercare’s networked reticulation system’ KPI. This measure was not reported on in Quarter 2 due to data errors. Staff have asked for more information on the methodology of the new measure and indicated that back casting would be required to enable a comparison with the previous year's reporting.

Ports of Auckland Limited

Financial results

54.     POAL’s Net Profit after Tax (NPAT) for quarter three year-to-date is $3.0 million favourable, against an annual target of $20.4 million.  Profit forecast for the full year is expected to be slightly above budget, with unfavourable revenue offset by favourable costs.

55.     Capital delivery lags budget by $19.3 million with focus concentrated on the automation project. The only other major project progressing is that of the electric tug which is tracking to budget and schedule. 

Performance against indicators

56.     For six of its seven financial performance indicators, POAL’s quarter three year-to-date results are on track to achieve the annual targets for 2020/21.  The increase in revenue indicator is not on track, with a quarter three year-to-date result of -8.4 per cent against an annual target of 0.3 per cent.  This is due to a drop in container terminal revenue.

57.     For the non-financial performance indicators in the report, two of these will be reported at year end and two others are on track.  Those on track are the number of harbour spills caused by POAL (quarter three result of zero against an annual target of zero), and multi-cargo average car dwell times (days) with a quarter three year-to-date result of 2.0 against an annual target of 2.85.

58.     The remainder of POAL’s non-financial performance indicators in the report are not on track, or in the case of the ‘Safe and empowered people’ outcome, have already failed to meet the target.  POAL advises that crane productivity measures are significantly below last year and target due to additional safety controls, labour shortages, yard capacity constraints and operating both manual and automated terminals.  Truck grid productivity measures are below last year and target due to yard congestion issues.

59.     The final report of the independent review of health and safety at Ports of Auckland by Construction Health & Safety NZ Trust (CHASNZ) was publicly released 30 March 2021. All the findings were publicly accepted by POAL along with a commitment to implement all the recommendations.  POAL will regularly report on its progress to council and other stakeholders.  The Governing Body at its 29 April 2021 meeting, amongst other resolutions, requested that POAL present to the Governing Body meetings in July and October 2021 on progress with implementation of the review’s recommendations, and these presentations will be made publicly available

60.     For the straddle carrier automation project, POAL advise this is continuing as planned with the focus on full terminal rollout. Currently a third of the container yard is automated, utilising the Fergusson North berth. Civil works in the southern end are required before full terminal roll-out can proceed and POAL advises these are progressing well and on-target.

61.     POAL state their container terminal operations are significantly impacting their ability to provide the service their shipping line customers need, with suspended berthage windows, major yard congestion, and productivity challenges. The average container ship waiting time to berth has reduced to four-to-five days based on the original ETA and latest ETA to actual berthing time. POAL continues to train and recruit more staff, but advise this is limited by the training pipeline.  POAL’s third additional crane team is now in operation and POAL have had up to six cranes operating.

 

Tauākī whakaaweawe āhuarangi

Climate impact statement

62.     The quarterly performance reports are a key tool to monitor the progress of each CCO in action on climate change.  The CCOs quarterly reports contain commentary on activities relating to climate change.

63.     Auckland Unlimited has contributed to Auckland Council group’s full submission on the Climate Change Commission (CCC) draft advice on the first three emission budgets and emission reduction plan for the government.  The ex-RFA operations of Auckland Unlimited recently underwent third party carbon emissions auditing and was successful in retaining its status Toitu carbon reduce certification.

64.     POAL’s low-pressure hydrogen refuelling station has been operational since December and POAL are still planning construction of a high-pressure refuelling station.  Renewable diesel has arrived for use in mobile plant trials which have recently commenced. POAL have engaged KPMG to support them in establishing their Climate Risk Framework.  POAL has also become a founding member of the C40 Cities Green Port Forum.

Ngā whakaaweawe me ngā tirohanga a te rōpū Kaunihera

Council group impacts and views

65.     Each CCOs quarterly report contains information on how they are contributing to the council’s outcomes and objectives.

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

Local impacts and local board views

66.     The governance of substantive CCOs and POAL is a responsibility delegated to the CCO Oversight Committee. We have not sought the views of local boards. CCOs provide six-monthly progress and performance reports to local boards. The quarterly reports also provide a summary of the engagement that CCOs have carried out with local boards during the quarter.

Tauākī whakaaweawe Māori

Māori impact statement

67.     Each CCO reports on their contribution towards achieving Māori Outcomes in their quarterly report.

68.     Auckland Unlimited key deliverables for quarter three have included Te Pua, which was held on the weekend of 13/14 March, to coincide with the first weekend of AC36 racing.  This was a showcase of Māori art, craft, music and kai in Silo Park.  The activation was a significant milestone in the Māori Outcomes programme calendar, delivering on a number of key KPIs to support Mana Whenua and Māori businesses in Tāmaki, particularly in a COVID environment.

69.     Eke Panuku has achieved 36 out of 40 significant Māori initiatives in the 2020-2021 financial year. Highlights include:

·    Infrastructure projects in preparation for the 2021 America’s Cup and a lessons learnt session is planned with mana whenua partners.

·    A process has been operated with mana whenua to identify commercial property opportunities.

·    Eke Panuku has hosted joint meetings between mana whenua and three local boards around specific projects.

 

70.     POAL’s 2020-23 Statement of Corporate Intent has a key performance indicator to “Develop and implement a Māori Outcomes Framework by 2023”.  In the report POAL note they received a draft Māori Outcomes framework from the Independent Māori Statutory Board on 23 March 2021. POAL advise that Rosie Mercer, POAL’s General Manager Sustainability, has been appointed to lead this programme, and two Directors have agreed to provide direct Board support. The POAL Board has approved the high-level programme and POAL have engaged an independent consultant to develop the programme of work.

Ngā ritenga ā-pūtea

Financial implications

71.     The financial results are discussed further as part of the Auckland Council Group quarterly performance report at the 20 May 2021 Finance and Performance Committee.

72.     Each of the CCOs and POAL’s quarterly reports contain information regarding their financial performance.

Ngā raru tūpono me ngā whakamaurutanga

Risks and mitigations

73.     The substantive CCO quarterly reports provide a summary of the top risks and mitigations. This supports more detailed quarterly reporting to the Audit and Risk Committee.

Ngā koringa ā-muri

Next steps

74.     This report is primarily for information purposes. The next quarterly reports will be provided to the CCO Oversight Committee in September 2021.

Ngā tāpirihanga

Attachments

No.

Title

Page

a

Auckland Transport Quarter 3 Report Cover Letter

35

b

Auckland Transport Quarter 3 Report 2020-2021

37

c

Auckland Unlimited Quarter 3 Report 2020/21

53

d

Eke Panuku Quarter 3 Performance Report 2021

67

e

Watercare Quarter 3 Performance Report 2021

89

f

Ports of Auckland Limited Quarter 3 Report 2020/21

105

     

Ngā kaihaina

Signatories

Authors

Claire Gomas - Principal Advisor

Rachel Wilson - Principal Advisor

Edward Siddle - Principal Advisor

Sarah Johnstone-Smith - Principal Advisor

Authoriser

Alastair Cameron - Manager - CCO Governance & External Partnerships

 


Council Controlled Organisation Oversight Committee

18 May 2021

 

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18 May 2021

 

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18 May 2021

 

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18 May 2021

 

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18 May 2021

 

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18 May 2021

 

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Council Controlled Organisation Oversight Committee

18 May 2021

 

Approval of shareholder comments on draft CCO Statements of Intent 2021-2024

File No.: CP2021/03382

 

  

 

Te take mō te pūrongo

Purpose of the report

1.       To approve shareholder comments on the draft Council-Controlled Organisations’ (CCOs) Statements of Intent (SOI) 2021-2024 and three legacy CCOs.

Whakarāpopototanga matua

Executive summary

2.       The council received the draft SOIs from Auckland Transport, Auckland Unlimited, Eke Panuku and Watercare by agreed deadlines.

3.       The SOI serves as a basis for accountability to the council, as the shareholder, and provides an opportunity for the council to influence each organisation’s direction. The SOIs set out the objectives and activities of each CCO for the next three years. SOIs should reflect agreed council plans and strategies, a combination of Long-term Plan decisions and a CCO view of the strategic outlook, and CCO organisational priorities. 

4.       Due to COVID-19 and the long-term plan process, council decided not to issue a letter of expectation in late 2020 and noted that guidance would be provided to CCOs via long-term plan workshops and the Mayoral Proposal.

5.       Developing a SOI is always more challenging in the year that council adopts a long-term plan, and for Auckland Transport the development and adoption of a Regional Land Transport Plan. As the Mayoral Proposal is to be issued on 19 May (the day after this Committee meets), and Long-term Plan decision making is to take place in June, it is expected that there will be considerable work to ensure final Statements of Intent align with the agreed budgets, programmes and performance expectations that are established through the Long-term Plan process. 

6.       In addition, Auckland Unlimited was only established in December 2020.  It is still developing its overall organisational strategy, structure and identity separate from its constituent legacy organisations.

7.       The CCO Review recommended that Statements of Intent needed to be improved in a number of ways.  One of these was for council to develop a template for CCOs that aims to eliminate variations of length, level of detail and style of presentation. The template should require CCOs to set out their work programme clearly and concisely, showing the link to relevant council strategies, the link from key performance measure to these strategies’ goals and relevant legislative requirements. Council and CCOs worked together to develop this template and all CCOs have followed this. There are still differences, however, in the level of detail provided for CCOs work programme. Staff will work with the CCOs to standardise this further as SOIs are finalised through June and July 2021. 

8.       The CCO review also recommended a common set of key performance measures that align with the strategic priorities and goals, customer and public satisfaction, local board satisfaction, financial results and improving Māori outcomes. There is variability on how this has been addressed by each CCO and specific shareholder feedback is recommended.


 

9.       The key themes of feedback for each CCO are in the box below.

Key feedback

Auckland Unlimited

Auckland Unlimited’s final Statement of Intent should:

·   Contain updates as necessary to align with capital funding decisions from the LTP 2021-31 finalisation process.

·   Include actions from the final Economic Development Action Plan which are assigned to Auckland Unlimited for delivery (where not already captured).

·   Include three current LTP performance measures currently missing and align the performance outlook and LTP measures table with decisions made on performance measures and targets through the LTP finalisation process.

·   Include a high-level table which captures its investment in Māori outcomes in terms of dollar value.

Auckland Transport

·   To ensure that work programmes align with decisions made through concurrent processes underway (Long-term Plan, Regional Land Transport Plan), and are as clear as possible about what will be delivered (eg. connected communities programme).

·   Ensure that once these decisions are made, that targets are sufficiently ambitious to reflect the continued priority of council to deliver outcomes in respect of climate change and mode shift.

·   Include additional discussion in the strategic sections about transport equity, customer experience, operational expenditure constraints, how a climate lens is applied to decision-making, collaborative partnering with council on future regional land transport plans, and the culture and capability of the organisation.

Eke Panuku

·   Provide a clearer narrative across the document that links the outcomes Eke Panuku is contributing to, the annual work programme and key projects, performance measurement and budgets.

·   The annual work programme needs to clearly specify what Eke Panuku will deliver and by when. More detail or annual performance targets are needed for a number of performance measures. 

Watercare

·   Ensure the final SOI reflects the resolutions from the Environment Climate Change Committee on Water Strategy: Water Consumption Targets.

·   Reinstates the current long-term plan and statement of intent targets.

 

10.     Each CCO’s final SOI will also need to reflect the council’s final decisions on 10-year budget 2021-2031.

11.     Council staff will continue to work with CCOs to finalise the SOI before 31 July 2021.


 

Ngā tūtohunga

Recommendation/s

That the Council Controlled Organisation Oversight Committee:

a)      note the recommended comments on the draft statements of intent 2021 – 2024 for the four substantive and three non-substantive CCOs contained in this report

b)      note that feedback at this stage of the statement of intent process is focussed on alignment with strategic issues, alignment with the Long-term Plan process, performance measures, statutory requirements and any other council priorities which have not been adequately addressed in the draft statements of intent

c)      agree that the Mayor and Chair of the CCO Oversight Committee will prepare letters to be sent to the four substantive and three non-substantive CCOs containing the shareholder comments

d)      agree that the content of the shareholder comment letters be based on the feedback in this report, with any deletions or additions based on feedback at the meeting

e)      note that staff will record any feedback at the meeting that relates to performance or operational issues, or issues of detail or wording, and ensure those are raised with the relevant CCOs

f)       delegate to the Manager, CCO Governance and External Partnerships, the authority to finalise the shareholder feedback on the draft statements of intent for Manukau Beautification Charitable Trust, Contemporary Art Foundation and Community Education Trust Auckland.

Horopaki

Context

12.     The purpose of Statements of Intent (SOI) is:

i)        for CCOs to outline intentions and activities for the forthcoming year

ii)       to provide an opportunity for shareholders to influence the direction of the CCO

iii)      to provide a basis for the accountability of CCO directors to the shareholders.

13.     The SOI serves as a basis for accountability to the council, as the shareholder, and provides an opportunity for the council to influence each organisation’s direction. The requirements and timeframes for statements of intent are set out in Schedule 8 of the Local Government Act 2002 (LGA). SOIs are one element of council’s overall strategic, planning, reporting and accountability documentation. Other documents include the statement of expectations, long-term plan, and annual report.

14.     The CCO Review recommended that council develops a template for CCOs that aims to eliminate variations of length, level of detail and style of presentation. The template should require CCOs to set out their work programme clearly and concisely, showing the link to relevant council strategies, the link from key performance measure to these strategies’ goals and relevant legislative requirements.  CCOs have followed the template provided by council. A new template has been developed that separates the SOI into two sections:

·     Part 1: Strategic Overview – which focuses on the three-year horizon and sets out strategic objectives, nature and scope, how it will deliver on council’s outcomes and the 10-year budget (LTP) performance measures. It is intended that this will be produced triennially, aligning with the adoption of the long-term plan.

·     Part 2: Statement of performance expectations. It provides an annual work programme, financial information and responses to specific requests by the shareholder. It is updated and submitted annually.

 

15.     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. The CCO Oversight Committee in November 2020 agreed to approve a one-month extension of statutory deadlines for all council-controlled organisation statements of intent for 2021-2024 (CCO/2020/27), as provided for in the Local Government Act Schedule 8, section 4.

16.     Staff from the CCO Governance department and other relevant divisions review the draft SOIs, considering statutory requirements, the Auckland Plan and other relevant strategies and policies of council. This results in any proposed shareholder comments, to be sent to the chairs of each CCO.  Each CCO is required to consider the shareholder comments at a public board meeting, before submitting a final SOI to the council.

17.     Any matters relating to performance or operational issues will be communicated separately to each CCO. These issues can be further followed up with the relevant chair and chief executive through their attendance at quarterly reporting meetings of the CCO Oversight Committee. 

Tātaritanga me ngā tohutohu

Analysis and advice

General comments

18.     A key expectation of the new template was that it should help the reader to understand what the CCO will do and how the CCO intends to manage its functions and operations to meet its strategic intentions (i.e. what outputs/activities the CCO will deliver). There should be a clear link between what activity the CCO is undertaking and how the CCO and council can assess it strategic performance.

19.     There has been a good effort by all CCOs to utilise the new template. However, not all have managed to provide a clear link between the outcomes council is seeking, their activity, how progress to meeting the outcomes will be measured and what this is costing. All of the CCOs have suggested KPI amendments that staff believe require further work and refinement before inclusion in the final SOIs. These are discussed below and in more detail for each CCO.

20.     A key recommendation of the CCO review was for council to provide stronger direction to the CCOs and the need to develop some guiding documents to assist with this. Considerable work has been done on progressing the Water Strategy and initiating the Economic Development Action Plan.

21.     In April the Environment and Climate Change committee resolved stepped targets for potable water consumption with immediate effect (ECC/2021/19). Watercare should reflect these targets in its final SOI, along with its commitment to meet the broader objectives of the water strategy programme.

22.     The draft Economic Development Action Plan is scheduled to be received at the 13 May 2021 Parks, Arts, Community and Events Committee. It will be subject to a feedback and targeted engagement process before a final version is presented to the Committee for adoption on 8 July 2021.  If approved, all CCOs should reflect the relevant actions in their final SOIs.


 

Key performance indicators

23.     The SOIs must contain the 10-year budget KPIs. They can also include additional measures that help council assess their performance. The CCO review recommended a common set of key performance measures that align with the strategic priorities and goals, customer and public satisfaction, local board satisfaction, financial results and improving Māori outcomes.  Due to resourcing constraints, a common set of measures has not been developed in time for these SOIs. However, staff consider there is an opportunity to improve the KPIs to ensure they appropriately measure a CCO’s progress in this regard and are suggesting that further work is undertaken with CCOs to ensure adequate KPIs are included in the final SOIs. CCOs are also working on the inclusion of a KPI on complaint handling as recommended in the CCO review. Specific comments are provided for each CCO in the following sections.

Finance

24.     In completing the final SOI, CCOs must ensure that the financial information is agreed with council staff and includes the following:

·     2019/2020 actual results

·     2020/2021 long-term plan budget

·     2022/2023 and 2023/2024 LTP budget

·     a breakdown by activity as in the LTP

·     agreed non-strategic asset sales targets.

25.     In addition, performance measures should align with the 10-year budget. CCOs should ensure that in the final documents the LTP measures are clearly identified.

26.     The Local Government Act (LGA) (Schedule 8, clause 9(1)(i)) requires that each CCO should include in its final SOI ‘the procedures to be followed before any member or the group subscribes for, purchases, or otherwise acquires shares in any company or other organisation’. As a matter of procedure, this needs to be included in each of the final documents.

CCO specific comments

Auckland Transport

27.     Auckland Transport’s Statement of Intent, perhaps more than any other CCO, is affected by other statutory processes which are underway at the same time as the Statement of Intent is being developed. The concurrent nature of the development of the Auckland Transport Alignment Project, the Regional Land Transport Plan, and the Long-term Plan mean that certainty about the budgets, programmes and performance targets of Auckland Transport will be not be possible until decision-making has taken place in those other processes.

28.     In this context, Auckland Transport has produced a comprehensive document, which provides a good basis on which to finalise the SOI later this year. We recommend however that a key shareholder comment will be to expect Auckland Transport to work closely with Council staff in Transport Strategy, Finance and Governance areas to ensure there is alignment in budgets and programmes with the processes referred to above.  One example in the work programme is in relation to connected communities (p43), where greater detail about exactly what will be delivered should be provided (at present there is a reference to this being “dependent on the capital envelope”). 

29.     In respect of targets, it is acknowledged that the last financial year has been a particularly challenging one in terms of performance against the most important strategic goals – climate change, mode shift to public transport and active modes, and to a lesser extent improved safety in the transport system.  COVID-19 has severely impacted budgets and will continue to do so for some time. The pandemic may also have impacted willingness to use public transport, and reduced demand for it through greater home working. 

30.     Nonetheless, the Long-term Plan process is likely to maintain strong financial support from Council for Auckland Transport’s programme to deliver mode shift, and many of the fundamental trends in Auckland remain likely to continue, such as population growth.  The growth in vehicle kilometres travelled relative to population growth indicates there is still a major challenge for Auckland in terms of changing the patterns of transport use.

31.     In this context, a key shareholder comment should be for Auckland Transport to work with staff on whether the targets included are ambitious enough. The targets supplied in the draft SOI are significantly lower than those stated in the LTP consultation document. Once budgets are confirmed, we recommend that the targets for public transport usage and cycling are reconsidered with a view to increasing them. 

32.     Staff note that there is an ongoing discussion with Auckland Transport about ensuring that the cycling measure provides an accurate account of AT’s performance in delivering strategic cycling infrastructure. Shareholders should expect that a suitable measure be agreed in time for the final Statement of Intent. 

33.     Sections 1.2 and 1.3 of the draft SOI provide a detailed and useful commentary of Auckland Transport response to Council’s strategic priorities, the major challenges faced, and the 10 key approaches to delivering on strategic objectives. There are a number of areas where this discussion could be strengthened, and which we recommend shareholder comment be made on:

·     The discussion of transport choices on pages could usefully also refer to issues relating to transport equity, especially in respect of public transport. This issue was raised by councillors during the discussion on the Congestion Question (6 May 2021 Planning Committee) and will continue to be an important consideration in mode shift investment choices in the future. 

·     The discussion of customer experience (pages 14-15) is strong in relation to digital services. It could also usefully discuss how these digital services are or will be supported by physical infrastructure, such as to ensure that transferring between services is quick, easy and safe. 

·     Once discussions about operational expenditure investment are concluded through the Long-term Plan, additional clarity about what can and cannot be delivered within the constraints of the agreed budget would be helpful.  One place for this could be page 15 as part of the travel choices discussion, as well as in the work programme section. 

·     The draft SOI should be clearer about what ‘applying a climate lens’ means in practice, and what it will mean in future. This should identify where this ‘lens’ sits in relation to other considerations, and how it affects prioritization of projects which will actively contribute to reducing the climate impact of the transport system, with examples. 

·     In respect of collaborative partnering (p18), a reference to the commitment to continue working with council on the next round of ATAP and RLTP should be provided.  This reflects the recommendations of the CCO Review.  

·     The section on operating model (p19) should, if relevant, refer to any agreed actions for Auckland Transport arising from the Economic Development Action Plan, once that is agreed. 

·     The culture and capability section should include a greater commitment to ensuring that the organisation has the right structure and culture so that it supports and embeds the key priorities around public transport and walking and cycling. This is similar to the way in which priorities around transport system safety have been prioritized throughout the organization in recent years. 

 

 

34.     A number of other points of detailed feedback have been received from staff within Auckland Council.  These will be taken up directly with the Auckland Transport staff responsible for preparation of the Statement of Intent.  For example, these will ensure that wording around the council group’s contribution towards Māori outcomes reflects the Kia ora Tāmaki Makaurau framework. 

Auckland Unlimited

LTP capital funding

35.     As documented in the draft SOI introduction and later in the document, Auckland Unlimited have highlighted challenges with the proposed level of capital funding through the Long Term Plan 2021-31.  Auckland Unlimited estimates it to be 33 per cent less than the minimum level of funding estimated for keeping its current venues up-to-date and operating.  Staff note this issue is subject to further discussion through the LTP finalisation process.

36.     We suggest that in the final SOI Auckland Unlimited:

·     makes updates as necessary to align with capital funding decisions from the LTP 2021-31 finalisation process.

One-year work programme

37.     The introduction to the draft SOI states that Auckland Unlimited will continue to respond to the relevant recommendations of the CCO review, including the need for a clear and coordinated approach to the region’s cultural venues and institutions that provides greater outcomes for Auckland; and moving toward the consolidated operation of all Auckland’s stadiums, including major non-Council venues.

38.     As noted above, the draft Economic Development Action Plan will be received by the PACE Committee on 13 May 2021 and it contains a number of actions which Auckland Unlimited will be responsible for delivering.  The current draft SOI appears to be missing some of these actions.

Proposed feedback to Auckland Unlimited

39.     We suggest that in the final SOI Auckland Unlimited:

·     includes in the one-year work programme the activity it is undertaking to progress the CCO review recommendation on moving toward the consolidated operation of all Auckland’s stadiums, including major non-council venues

·     ensures the actions from the final Economic Development Action Plan which are assigned to Auckland Unlimited for delivery (where not already captured in the draft SOI), are included.

Performance outlook

40.     There are some changes to the Auckland Unlimited suite of performance measures (LTP and non-LTP) in the draft SOI, from those in the current seven-month 2021/21 SOI.  The current SOI contains a total of 21 performance measures, eight of which are LTP measures.  The current set of 13 non-LTP measures have been rationalised in the draft SOI.

41.     The draft SOI is missing three current LTP performance measures.  These are:

·     the number of people who experience Auckland Unlimited arts, environment and sports venues and events

·     the contribution to regional GDP from major events and business events attracted or supported

·     the number of visitor nights generated as a result of an Auckland Unlimited intervention.

42.     Staff consider these performance measures reflect important areas of Auckland Unlimited’s business and should be included, with revisions to some targets as necessary reflecting trends in actual performance, as well as forecast performance - particularly for the 2022/23 and 2023/24 years.

43.     The draft SOI contains four non-LTP measures, one of which is new and under development relating to customer complaints.  Staff consider that rationalisation of the current suite of non-LTP measures is desirable, to a smaller more focussed set of measures which eliminates duplication, removes measures which are a subsets of a higher level measure, provides for trend analysis and better reflects the business of the merged entity.  

Proposed feedback to Auckland Unlimited

44.     We recommend that in the final SOI Auckland Unlimited:

·     includes the missing three current LTP performance measures and aligns the performance outlook and LTP measures table with decisions made on performance measures and targets through the LTP finalisation process

·     ensures finalisation of the non-LTP placeholder performance measure relating to customer complaints.

Māori outcomes

45.     The draft SOI covers Auckland Unlimited’s alignment to Kia Ora Tāmaki Makaurau, the council family’s Māori Outcomes Performance Measurement Framework. Auckland Unlimited is the lead agency for the Kia ora Umanga, Māori Business, Tourism and Employment priority.  However, the draft SOI does not include any information on Auckland Unlimited’s investment in Māori outcomes in terms of dollar value.

46.     The Māori economy section of the draft SOI refers to ‘establishment of a Māori Economic Advisory Group for Tāmaki Makaurau’.  The draft SOI would benefit from expanding this further to include a brief description on the scope and purpose of this group and its links to delivery of Kia ora Te Umanga.

Proposed feedback to Auckland Unlimited

47.     We suggest that in the final SOI Auckland Unlimited:

·     clarifies the scope and purpose of the proposed Māori Economic Advisory Group for Tāmaki Makaurau and its links to delivery of Kia or Te Umanga

·     includes a high-level table which captures its investment in Māori outcomes in term of dollar value.

Eke Panuku

48.     The draft SOI 2021-24 provides a high-level description of key areas of work for Eke Panuku, however it is difficult to identify a clear narrative across the document. There is no clear link between the outcomes council is seeking, their annual work programme, performance measurement and budgets.  In a number of areas more detail is needed to provide clarity around what will be delivered and how performance can be measured.

Part one - Strategic overview

49.     The dual purpose of Eke Panuku and how they contribute to Auckland Plan outcomes is set out in the strategic context section. However, this section needs to reference the context within which Eke Panuku is operating. Firstly, the challenges facing Auckland that are of particular relevance to Eke Panuku, including population growth and the need for quality development to support this growth (as set out in the Auckland Plan).

50.     Secondly the SOI should reflect the financial and operational context of the Auckland Council group. The draft 10-year Budget 2021-2031 sets out:

·     how Auckland Council is facing both rising investment demand and reduced investment capacity (Part 2: key challenges)

·     the more focused approach that is proposed for providing infrastructure in growth areas (Part 3: Key issue 3).

51.     Once the 10-year budget is agreed, staff consider that further conversations will be needed to consider whether these two factors will impact on the Eke Panuku work programme over the next three years.

52.     How Eke Panuku contributes to Auckland Plan outcomes is set out in both the draft SOI and the draft 10-year Budget text (page 350 in the CCO accountability policy). Currently these two documents do not fully align. For example, the draft 10-year Budget text describes how Eke Panuku will contribute to the Opportunity and Prosperity outcome, specifically to “advance Māori employment and support Māori business and iwi organisations to be significant drivers of Auckland’s economy” which is not covered in the draft SOI text.

Proposed feedback to Eke Pankuku

53.     We suggest that in the final SOI Eke Panuku:

·     provides greater detail around the context and drivers of their work, both the external factors for Auckland and the financial and operational context of the Auckland Council group. 

·     references the need for further conversations to agree the Eke Panuku medium term work programme, following decision-making and adoption of the 10-year Budget.

·     ensures that the description of how Eke Panuku contributes to Auckland Plan outcomes is consistent between the SOI and the 10-year Budget.

Nature and scope of activities - 'what we do'

54.     The diagram showing the vision, levers and core functions for Eke Panuku is useful, however is not referenced in the text. The key headings in the diagram (or others) could be used to structure this section and possibly create links to the rest of the document. This would help the reader make connections from the strategic overview to the work programme and performance measures.

Proposed feedback to Eke Panuku

55.     We suggest that in the final SOI Eke Panuku:

·     creates clearer headings/linkages across the SOI, to make it easier to understand how the activities of Eke Panuku align to their strategic objectives, the work programme and performance measures.

Part 2 – Statement of performance expectation

56.     The work programme section is light on specific deliverables in comparison to previous SOIs and the other CCO work programmes. It would be useful to have a table or similar to set out the specific deliverables to be achieved in the next 12 months. Additional information should include:

·     references to key areas where work programmes are delivering on the Auckland Plan, Development Strategy, draft Economic Development Action Plan and Kia Ora Tāmaki Makaurau, the council group’s Māori Outcomes Performance Measurement Framework 2021.

·     the priority actions from the Mana Whenua Outcomes Framework that will be delivered in 2021/2022. This section should also note that this Framework aligns with and complements Kia Ora Tāmaki Makaurau. There could also be a separate deliverable that Eke Panuku will assist Council to respond to the Te Tiriti o Waitangi Audit programme led by the Independent Māori Statutory Board.

·     more detail on the capex projects in Appendix 2, including how the projects relate to the activities and work programme of Eke Panuku. This should include the different stages of delivery for key capex projects, possibly using a phasing diagram.

 

57.     The ‘Working with Partners and Stakeholders’ section notes that Eke Panuku will work with partners as new government investments and initiatives are announced. We note that there is an expectation that there will be further conversations with the Council in areas where significant resource is required from Eke Panuku.

58.     Eke Panuku have revised their performance measures, with three new measures proposed, seven measures remaining the same and 10 measures deleted. Staff consider that further work is needed on these performance measures, specifically:

·     the first three performance measures are new and should provide useful information for measuring progress, however there are only three-year targets identified. Without annual targets it will be difficult to assess annual and quarterly performance. Annual targets could be set which will measure progress, with a note indicating the longer-term nature of the projects/targets.  

·     two performance measures have no agreed targets (measures 8 and 9). The final SOI should provide these targets or detail when they will be agreed.

·     two measures are around delivery of specific projects, but with little detail provided on these projects (measures 4 and 10). Without detail on the scale and scope of the projects it is difficult to assess progress.

·     There are no performance measures around climate change or environmental performance.

Proposed feedback to Eke Pankuku

59.     We suggest that in the final SOI Eke Panuku:

·     provides more information on specific deliverables to be achieved over the next 12 months, noting that further conversations with Council will be necessary where significant resource is required from Eke Panuku in areas of new government investment.

·     specifies annual targets for performance measures 1, 2, 3, 8 and 9 (or details when they will be set) and provides more detail on projects or initiatives to be delivered for performance measures 4 and 10.

·     note that the CCO Governance and External Partnership team will be working with CCOs to improve performance measures as described in the CCO review.   

Watercare

60.     Part one of Watercare's statement of intent is structured around six ‘capitals,’ with a description of its work with the council and the relevant KPIs. This is a useful framework.

61.     Section 1.2. Responses to council’s strategic objectives and outcomes, should provide an overview of how Watercare will contribute to the Auckland Plan’s six outcomes (i.e. the outputs it will deliver). The table provided on page 5 provides an indication of alignment between Watercare’s capitals with the Auckland Plan outcomes at a high level. In some cases, how Watercare’s planned activity will contribute to the Auckland Plan’s outcomes are discussed under each capital section. Taking a more standardised approach and explaining how Watercare’s activities will deliver on the Auckland Plan is recommended. Additionally, Watercare have provided a good summary of their actions relating to how it will deliver to the Māori outcomes on p.9, a similar approach to this for contributing the Auckland Plan is suggested.

Proposed feedback to Watercare

62.     We suggest that in the final SOI Watercare:

·     the table on page 5 is amended or expanded to include how Watercare will contribute to each of the Auckland Plan's outcomes and a more consistent approach to explaining these contributions is made, where relevant, under each capital section.

Actions to maintain security of water supply

63.     The recent drought highlights the importance of ensuring secure, resilient water supply into the future. Achieving this will require change in the way we value, use, and take care of water. The water consumption targets set in the Water Strategy: Water Consumption targets is one way we will ensure we are appropriately managing our water.

64.     There is a reference to the drought standard being reviewed by Watercare. This is a task that should be done in partnership with Auckland Council and is part of the Water Strategy.

65.     Shareholder feedback on the SOI 2020-2023 asked for an update of Watercare’s Water Use Efficiency Strategy which covered the period from 2017 – 2020. The statement of intent should include an update of this strategy in Watercare’s work programme. This update can now include the contribution of Watercare to the group water consumption targets adopted in April 2021.

Proposed feedback to Watercare

66.     We suggest that in the final SOI Watercare:

·     include Watercare’s programme for reviewing the drought management plan is done in conjunction with the council

·     include in the work programme an update of this strategy

Watercare’s performance measures

67.     Watercare proposed a number of changes to their performance measures. These related to reducing the targets in:

·     nine of the 15 long-term plan non-financial (DIA) performance measures (required to be reported on by the DIA). Two of these measures are also part of work in the Auckland Water Strategy (leakage and per capita consumption).

·     non long-term plan performance measures (statement of intent measures).

68.     Watercare maintained that the proposed changes reflected the flow on effects from the Group’s financial constraints imposed on their proposed asset management plan.

69.     Watercare have traditionally outperformed the majority of their performance measure targets and increases in budget are proposed in the 2021 10-year budget. Staff considered that Watercare have not provided satisfactory justification for a step change in performance targets. In discussions with Watercare, Watercare have agreed that we need to work together with their new CEO to fully appreciate the constraints and risks of any proposed budget constraints on outcomes. The outcomes of this review might lead to a need to revisit these targets in subsequent years, but for the following financial year the previous SOI 2020-2023 targets will be rolled over.

70.     The draft SOI was provided prior to the Environment and Climate Change resolution regarding per capita consumption and the final SOI will need to be updated to reflect the water consumption targets adopted on 15 April 2021.

71.     We support the increased focus Watercare is placing on injuries, diversity, community trust, average asset age and financial measures. This reflects the recommendations of the CCO Review.

72.     In reviewing with council over the next year Watercare’s performance we encourage Watercare to consider developing measures that consider natural environment outcomes. The DIA targets in Appendix C (numbers 1 and 2) cover compliance with Watercare’s resource consents for discharge of their sewerage system and the average consumption of drinking water per day. These measures provide very limited links to environmental and sustainability outcomes identified in national directions (e.g., NPSFM and Auckland’s Climate Plan). Having more detailed measures will also help to assess what reduced investment in infrastructure would mean from an environmental and climate change perspective.

Proposed feedback to Watercare

73.     We suggest that in the final SOI Watercare:

·     include in the list of key focus areas for the 2021-2024 SOI (page 2) “maintaining performance against the DIA non-financial measures”

·     retain their current statement of intent targets as they are based on current performance and funding over the decade

·     remove reference to a step change in performance from FY22

·     update the average consumption of drinking water per day per resident to reflect the targets set by the Environment and Climate Change Committee resolution.

Māori outcomes

74.     The current references to the Māori outcomes reflect the Auckland Plan 2012 and need updating to reflect the Auckland Plan 2050. The Māori Identity and wellbeing outcome seeks to advance prosperity for Māori.

75.     Under specific strategies and plans, staff consider that Watercare should reflect that they are an active member of the Māori Outcomes Steering Group, The Māori Outcomes Steering Group reports into council’s Executive Leadership Team and the council group chief executives and has oversight of the Long-term Plan funding ($150m) for Māori Outcomes. Specific reference should be made to the contributing to the outcomes of Kia Ora Tāmaki Makaurau: Māori outcomes performance framework.

76.     Watercare should also note it is committed to working with the council group and the Independent Māori Statutory Board in meeting the requirements of the tri-annual Treaty of Waitangi Audit.

Proposed feedback to Watercare

77.     We suggest that in finalising the SOI:

·     correct the reference to the Auckland Plan 2050, Māori Identity and wellbeing outcome

·     provide more detail in Watercare’ work programme how you will contribute to the outcomes of Kia Ora Tāmaki Makaurau: Māori outcomes performance framework.

Framing of issues and upcoming water reform

78.     The framing of several issues in the SOI could be reworded to reflect a joint Watercare and Auckland Council perspective. For example, group budget constraints are framed as a reduced budget for Watercare rather than an increase from the 2018 LTP to the 2021 LTP, that perspective should be added.

79.     The discussion about the water reforms is minimal. This is likely to be a key work programme over the coming year. This could be broadened to reflect actions such as providing data and other input, assisting in various technical workstreams to support to council (and government) to assist with their understanding of the government’s proposal for Water Reform and what it means for Watercare and Aucklanders. We are also aware that Watercare have set up a transition unit within Watercare. More detail around the undertakings of this unit and its work programme should be provided.

Proposed feedback to Watercare

80.     We suggest that in the final SOI Watercare:

·     provide more detail on its forward work programme to support the three water’s reform and outline clearly how Watercare’s work will assist Council in decision-making on water reform.

Non-substantive CCOs and external partnerships

81.     Auckland Council has nine other CCOs that are not considered ‘substantive’ under the Local Government (Auckland Council) Act 2009. The focus of these CCOs is either more local in nature than the substantive CCOs, or significantly smaller in scale, though the Governing Body is still responsible for their governance.

82.     Three of these CCOs must provide the council with an SOI. The others have been exempted from CCO status and are therefore not subject to the normal accountability requirements of a CCO under the LGA, including preparing a SOI. 

83.     There are no recommended shareholder comments for Contemporary Art Foundation.

84.     Staff recommend that the Manager: CCO Governance and External Partnerships is delegated the authority to provide these three community-focussed CCOs with shareholder comment on behalf of the council. 

Manukau Beautification Charitable Trust (MBCT)

85.     The draft 2021-24 SOI represents the second time MBCT has prepared an SOI since its exemption status was removed.  The draft SOI reflects continuous improvement of MBCT in the SOI development process.  The draft 2021-24 SOI is more refined and focussed than previously and overall reads well.  The main areas of proposed shareholder comment are:

·     continued refinement of the performance measurement framework and inclusion of actual results for 2019/20 and proposed targets for 2023/24 in the document.

·     stronger connection/integration between the three-year work programme and the areas of work sections of the document.

86.     It is recommended the Manager, CCO Governance and External Partnerships be delegated the authority to finalise the shareholder feedback on the draft SOI to MBCT.

Community Education Trust Auckland (COMET Auckland)

87.     The draft 2021-24 SOI provides a three-year workplan which details the key projects and initiatives to deliver on COMET Auckland’s strategic objectives. Within the three-year work plan, further clarity is needed for a number of projects on timing (whether the project/goals are for one or three years) and whether the projects/goals are for the Auckland region.

88.     It would be useful to have an Auckland specific measure for the Youth Employability Programme. There is a measure 'to increase the reach YEP License to Work in Auckland and nationally by 15% in 2022', this could be broken into an Auckland and national measure (or another measurable goal could be created).

89.     Some of COMET’s performance targets drop due to the planned handover of the Talking Matters programme. It would be useful to mention the outline of this handover in the three-year workplan and the financials section. 

90.     It is recommended the Manager, CCO Governance and External Partnerships be delegated the authority to finalise the shareholder feedback on the draft SOI to COMET Auckland.

Tāmaki Redevelopment Company

91.     Auckland Council is a minority shareholder (owning 41 per cent of the shares) in Tāmaki Redevelopment Company (TRC), a crown entity. As a minority shareholder, Council will receive TRC’s draft Statement of Intent 2021-2025 (providing their medium-term strategic direction) and draft Statement of Performance Expectations 2021-2022 (setting annual performance expectations). Staff have provided feedback to the Ministry of Housing and Urban Development staff to ensure the content reflects council’s objectives in Tamaki on early drafts of these documents. The Statement of Intent and Performance Expectations will be provided to the Committee for information when they have been publicly released.  

 

Tauākī whakaaweawe āhuarangi

Climate impact statement

92.     CCOs are responsible for demonstrating how their draft Statements of Intent align with Te Tāruke-ā-Tāwhiri: Auckland's Climate Plan. This has been reviewed by staff as part of reviewing the draft SOIs.  Comments relating to climate impacts are included in the shareholder comments recommended above. 

93.     There is ongoing work to determine appropriate emissions and adaptation measures and staff will ensure this is incorporated into final Statements of Intent as appropriate. 

Ngā whakaaweawe me ngā tirohanga a te rōpū Kaunihera

Council group impacts and views

94.     Staff have sought and incorporated feedback from various department across the council to ensure all council matters are considered.

95.     When the official letters with feedback are provided to the CCOs, staff will work with the CCOs to provide further detail on how best to incorporate the shareholder feedback.  This will also include correcting minor errors of fact or incorrect references, which may not have been listed in this report. 

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

Local impacts and local board views

96.     The CCO Oversight Committee is responsible for providing shareholder comments on the draft SOI, and the practice to date has been not to seek direct feedback from each local board.

Tauākī whakaaweawe Māori

Māori impact statement

97.     The activities of CCOs have significant potential to improve Māori wellbeing and to influence the achievement of the Auckland Plan and Tāmaki Makaurau Māori Outcomes. The draft SOIs were separately provided to the Independent Māori Statutory Board and council’s Nga Mātārae, and their comments have been reflected in this report.

Ngā ritenga ā-pūtea

Financial implications

98.     As noted in the general comments above, the final SOI financial sections need to be aligned with the long-term plan decisions. 

Ngā raru tūpono me ngā whakamaurutanga

Risks and mitigations

99.     There are no direct risks associated with the proposed shareholder comments. There is a risk that the CCOs may not adequately reflect the shareholder comments.  This can be mitigated by working closely with the CCOs. Also, if the shareholder comments are not adequately reflected, the council can modify a SOI at any time.

Ngā koringa ā-muri

Next steps

100.   If the committee agrees with the feedback contained in this report, staff will draft letters based on this feedback and any other matters directed to be included by the Committee.  These will be sent by the mayor or the chair of the CCO Oversight Committee to the chair of each board, as soon as possible after this meeting, so that the CCOs can revise their SOIs accordingly and meet the proposed new deadline for final submission of 31 July 2021.

 

Ngā tāpirihanga

Attachments

No.

Title

Page

a

Auckland Transport - Draft SOI (2021-2024)

131

b

Auckland Unlimited - Draft SOI (2021-2024)

195

c

Eke Panuku - Draft SOI (2021-2024)

223

d

Eke Panuku - Appendix

243

e

Watercare - Draft SOI (2021-2024)

245

f

COMET - Draft SOI (2021-2024)

275

g

MBCT - Draft SOI (2021-2024)

293

h

CAF - Draft SOI (2021-2024)

309

     

Ngā kaihaina

Signatories

Authors

Edward Siddle - Principal Advisor

Claire Gomas - Principal Advisor

Sarah Johnstone-Smith - Principal Advisor

Rachel Wilson - Principal Advisor

Authoriser

Alastair Cameron - Manager - CCO Governance & External Partnerships

 


Council Controlled Organisation Oversight Committee

18 May 2021

 

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Council Controlled Organisation Oversight Committee

18 May 2021

 

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Council Controlled Organisation Oversight Committee

18 May 2021

 

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Council Controlled Organisation Oversight Committee

18 May 2021

 

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18 May 2021

 

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Council Controlled Organisation Oversight Committee

18 May 2021

 

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Council Controlled Organisation Oversight Committee

18 May 2021

 

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Council Controlled Organisation Oversight Committee

18 May 2021

 

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Council Controlled Organisation Oversight Committee

18 May 2021

 

Highbrook Park Trust Disestablishment

File No.: CP2021/04031

 

  

 

Te take mō te pūrongo

Purpose of the report

1.       To seek agreement to disestablish the Highbrook Park Trust.

2.       The Howick and Ōtara-Papatoetoe Local Boards have both considered the proposed disestablishment and endorsed it at their recent business meetings. 

Whakarāpopototanga matua

Executive summary

3.       The Highbrook Park Trust (the Trust) is a legacy council-controlled organisation (CCO) that was established in August 2000 to acquire, establish and maintain a park on the Waiouru Peninsula, adjacent to the Highbrook Business Park.

4.       The Trust Deed provides for the lifetime of the Trust to be limited to a maximum of 15 years. This timeframe was extended in August 2015. 

5.       The park of approximately 40 hectares was established subsequent to the establishment of the Trust.  Council provides an annual grant (management fee) to the Trust to maintain the park.

6.       During 2020 the Community Facilities department reviewed its funding arrangements with all stakeholders. Following the review, the Area Operations team believe that disestablishing the Trust Deed provides an opportunity for council to save money through its internal maintenance teams.

7.       In addition to increasing costs of servicing the park, the maintenance agreement does not require the Highbrook Park Trust to depreciate the assets in the park. By disestablishing the Trust, and ensuring depreciation is accounted for, council will be able to spread the cost of replacing assets over time.

8.       The Area Manager has met with Highbrook’s Trust Board advising them that the grant would not be renewed in 2020. The Trust was informed that the services will continue to be delivered on a month-by-month basis, ceasing on 30 June 2021.

9.       Disestablishing the Trust means council will supply maintenance in the park from 1 July 2021.  The supply of maintenance services by council does not lead to new financial implications, but greater opportunities for future savings.

10.     This report recommends that the Highbrook Park Trust be disestablished from 30 June 2021, and a letter of thanks be sent Highbrook Park’s Trust board.

 

Ngā tūtohunga

Recommendation/s

That the Council Controlled Organisation Oversight Committee:

a)      agree to disestablish the Highbrook Park Trust as of 30 June 2021

b)      send a letter of thanks to Highbrook Park Trust Board noting the achievement and vision of its members in developing a great park in Tāmaki Makaurau.

 

Horopaki

Context

11.     The Trust was established in August 2000 by Manukau City Council and Highbrook Development Limited.  It is a legacy CCO of Auckland Council.  The purpose of the Trust was to acquire, establish and maintain a park on the Waiouru Peninsula (adjacent to the Highbrook Business Park in East Tamaki) for the benefit of the public of the region. The business park is managed by Goodman NZ.

12.     The other objectives of the Trust are to:

·        ensure the effective, efficient and safe use of the park

·        protect environmentally sensitive and geologically important areas within the park

·        ensure that uses and activities within the park are compatible with the adjoining communities

·        maintain references within the park to the historic uses of the land.

13.     Approximately 30 hectares of land was initially transferred to the Trust, and subsequently an additional 10 hectares was acquired and transferred. The park has been developed in stages and the areas associated with each stage have been transferred to the Trust for management.

14.     The Trust has been responsible for the development of the park and has undertaken extensive landscaping and planting. The Trust is also responsible for the ongoing management, maintenance and administration of the park. Council currently pays an annual grant (management fee) to the Trust to meet the Trust’s annual budgeted expenses, including park maintenance.

15.     The Trust Deed provides for the disestablishment of the Trust, on a date to be nominated by the Trust and agreed with council some 15 years after the establishment of the Trust, which was in August 2000.

16.     Once disestablished, the Trust Deed states that the land owned by the Trust must be transferred to council “to be held by the Council on trust for any charitable purpose or purposes in the region approved by the Council as being as similar as is practicable to the objectives for which the Trust was established”. 

17.     The trustees must apply any residual Trust funds remaining after the Trust has met all its costs, expenses and liabilities, “to any charitable purpose or purposes in the region approved by the Council as being as similar as is practicable to the objectives for which the Trust was established”. 

18.     This report recommends that the Trust be disestablished.

Tātaritanga me ngā tohutohu

Analysis and advice

19.     Staff from the Community Facilities department and council’s Legal department met with the Highbrook Park Trust Board in March 2021, and again in late April 2021. 

20.     The Trust Board was advised that in addition to increasing costs of servicing the park, the maintenance agreement does not require Highbrook Park Trust to depreciate the assets in the park.

21.     Following review of its funding arrangements, the Area Operations team believe that the disestablishing of the Trust Deed provides an opportunity for council to save money through its internal maintenance teams. It also ensures depreciation is accounted for allowing council to spread the cost of replacing assets over time.

22.     The anticipated savings are anticipated to be approximately $100,000 per annum.  In addition, council management will ensure that there is appropriate provision made for the replacement of assets within the park, which the Trust is currently not required to do.

23.     For these reasons, staff decided that the grant to the Trust will not be renewed, and that council will take over maintenance of the park from 1 July 2021.  As the Trust will no longer be undertaking these activities, it is recommended that the Trust be wound up, as it performs no other function.

24.     Once disestablished, the land owned by the Trust must be transferred to council “to be held by the Council on trust for any charitable purpose or purposes in the region approved by the Council as being as similar as is practicable to the objectives for which the Trust was established”.

25.     Once the land owned by the Trust is transferred back to council, the park will continue to be managed as public open space until such time as classification of the land can be determined.

26.     Council staff have engaged with the Trustees to discuss with them that the grant would not be renewed, the implications for the Trust, and the transition towards council management of the park. The Trustees are actively co-operating with the transition towards council management.

Tauākī whakaaweawe āhuarangi

Climate impact statement

27.     The recommendation has no impact because the proposal continues an existing activity and does not introduce any new sources of emissions.

Ngā whakaaweawe me ngā tirohanga a te rōpū Kaunihera

Council group impacts and views

28.     The disestablishment of the Highbrook Park Trust has no impact on any other department of Auckland Council, as Community Facilities will be solely responsible for the maintenance and upkeep of the park.

29.     No other council-controlled organisation is affected by this proposal.

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

Local impacts and local board views

30.     Howick Local Board considered a report on disestablishment of the Highbrook Park Trust on 6 May 2021.  It supported the recommendation to disestablish the Trust and resolved to send a letter of thanks to the Trust Board noting the achievement and vision of its member in developing a great park (HW/2021/48).

31.     Ōtara-Papatoetoe Local Board considered a report on disestablishment of the Highbrook Park Trust on 4 May 2021.  It supported the recommendation to disestablish the Trust and resolved to send a letter of thanks to the Trust Board noting the achievement and vision of its member in developing a great park (OP/2021/56).

Tauākī whakaaweawe Māori

Māori impact statement

32.     The decision whether to consent to the disestablishment of the Trust does not have an impact on issues of significance to iwi, as the current management agreement will continue on a day-to-day basis.

33.     There are references within the park to the historic uses of the land, and these, together with the park brochure and website, highlight the significance of the area, particularly the Pukekiwiriki crater.

Ngā ritenga ā-pūtea

Financial implications

34.     Council’s contribution, through a grant to the Highbrook Park Trust to deliver maintenance and associated activities such as management, legal fees and rates for financial year 2021/2022, will be $377,947, increasing year on year with inflation. The costs for continued maintenance that aligns with the current Full Facility and Arboriculture Contracts will total $269,224 for the same period. Therefore, by delivering the aforementioned activities internally, a positive financial position of approximately $100,000 is anticipated.

35.     As the assets within the park are currently under the management of the trust, they cannot be depreciated. Should the Trust not be disestablished, the resulting financial implications will create an operational budget shortfall as the assets potentially begin to fail. Community Facilities has allowed for renewals funding within Highbrook Park in the local boards draft three-year work programme.

Ngā raru tūpono me ngā whakamaurutanga

Risks and mitigations

36.     There are no identified financial or associated risks with the recommendations made in this report to disestablish the Highbrook Park Trust. The recommendations are envisaged to have a positive long-term impact.

Ngā koringa ā-muri

Next steps

37.     Following the meeting, Auckland Council’s legal department and Highbrook Park Trust will develop the appropriate amendments to the trust documentation.

38.     Auckland Council’s Community Facilities department and Highbrook Park Trust will develop the appropriate amendments to the Operational Agreement.

 

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

 


Council Controlled Organisation Oversight Committee

18 May 2021

 

Liaison councillors' updates

File No.: CP2021/05014

 

  

 

Te take mō te pūrongo

Purpose of the report

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

Whakarāpopototanga matua

Executive summary

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

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

4.       Liaison councillors are required to regularly report verbally to the CCO Oversight Committee, or in writing if unavailable to attend in person, about activities undertaken in the role and issues arising.

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

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

·        Auckland Unlimited: Cr Richard Hills and Cr John Watson

·        Eke Panuku Development Auckland: Cr Efeso Collins

·        Watercare: Cr Linda Cooper

 

Ngā tūtohunga

Recommendation/s

That the Council Controlled Organisation Oversight Committee:

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

 

 

Ngā tāpirihanga

Attachments

There are no attachments for this report.     

Ngā kaihaina

Signatories

Author

Duncan Glasgow - Kaitohutohu Mana Whakahaere / Governance Advisor

Authoriser

Alastair Cameron - Manager - CCO Governance & External Partnerships

 


Council Controlled Organisation Oversight Committee

18 May 2021

 

Summary of Council Controlled Organisation Oversight Committee information memoranda and briefings (including the forward work programme) - 18 May 2021

File No.: CP2021/04389

 

  

 

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

23/3/21

CCO Review Implementation Programme update

29/4/21

Name change to Eke Panuku

 

5.       The following workshops have taken place:

Date

Workshop

23/3/21

CONFIDENTIAL: Ports of Auckland Limited performance results

27/4/21

CONFIDENTIAL: Auckland Unlimited: Strategic work programme

 

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

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

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

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 – 18 May 2021.

 

Ngā tāpirihanga

Attachments

No.

Title

Page

a

Forward Work Programme

335

b

Memo - CCO Review Implementation Programme update (Under Separate Cover)

 

c

Memo - Name change to Eke Panuku (Under Separate Cover)

 

     

Ngā kaihaina

Signatories

Author

Duncan Glasgow - Kaitohutohu Mana Whakahaere / Governance Advisor

Authoriser

Alastair Cameron - Manager - CCO Governance & External Partnerships

 


Council Controlled Organisation Oversight Committee

18 May 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

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 was received in February 2021.

An update by way of memorandum was provided in March 2021.

 

A report will be provided in August 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.

Decision: to approve new Auckland Council branding guidelines.

 

Progress to date:

A workshop was held in February 2021.

 

A report will be provided in June 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 were received in March 2021.

The Ports of Auckland Limited Interim Report for the six months ending 31 December 2020 were received in March 2021.

 

Third quarter reports for substantive council-controlled organisations will be received in May 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 May 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 May 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

Te Puru Community Charitable Trust Organisation – extension of exemption

CCO Governance and External Partnerships

Extending 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.

To approve Te Puru’s extension to the exemption from council-controlled organisation requirements under the Local Government Act 2002.

The extension of the Trust’s exemption was approved by the Council Controlled Organisation Oversight Committee on 23 February 2021.

 

(Resolution number CCO/2021/5)

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)